Procore signs multi-year strategic collaboration agreement with AWS
AT&T (NYSE:T) stock rose after announcing plans to acquire spectrum licenses from EchoStar (NASDAQ:SATS) for approximately $23 billion in cash, while EchoStar shares soared 80% Tuesday morning on the news.
The deal will add an average of approximately 50 MHz of low-band and mid-band spectrum to AT&T’s holdings, covering over 400 markets across the U.S. Specifically, AT&T will acquire about 30 MHz of nationwide 3.45 GHz mid-band spectrum and 20 MHz of nationwide 600 MHz low-band spectrum.
AT&T intends to begin deploying the mid-band licenses as soon as possible to enhance its 5G network capabilities. The transaction is expected to close in mid-2026, subject to regulatory approvals.
As part of the agreement, AT&T and EchoStar will enhance their long-term wholesale network services agreement, allowing EchoStar to operate as a hybrid mobile network operator providing wireless service under the Boost Mobile brand, with AT&T serving as the primary network services partner.
"This acquisition bolsters and expands our spectrum portfolio while enhancing customers’ 5G wireless and home internet experience in even more markets," said John Stankey, Chairman and CEO of AT&T.
The telecommunications giant expects the deal to accelerate the availability of its AT&T Internet Air fixed wireless home internet service and drive long-term growth in its converged customer base. Following the closing, AT&T anticipates its net debt-to-adjusted EBITDA ratio to increase to around 3x, with plans to return to its 2.5x target within approximately three years.
AT&T reiterated its full-year 2025 financial guidance and capital return plans, including $20 billion of share repurchase capacity during 2025-2027.