EchoStar Announces Spectrum Sale and Hybrid Mobile Network Operator (MNO) Agreement, Steps Toward Resolving Federal Communications Commission's (FCC) Inquiries

Rhea-AI Summary

EchoStar (NASDAQ:SATS) has announced a major spectrum sale to AT&T for approximately $23 billion, involving 50 MHz of nationwide spectrum including 3.45 GHz and 600 MHz licenses. The deal includes a hybrid mobile network operator (MNO) agreement that will allow Boost Mobile to continue operating using AT&T's cell sites while maintaining its cloud-native 5G core.

The transaction aims to address FCC's spectrum utilization concerns while ensuring uninterrupted service for Boost Mobile subscribers. The agreement allows AT&T to lease the spectrum pending the sale's closing. The proceeds will be used for debt retirement and funding EchoStar's operations and growth initiatives. The company's other businesses, including DISH TV, Sling, and Hughes, will not be affected by this transaction.

Positive

• Substantial cash infusion of $23 billion from spectrum sale to strengthen financial position
• Strategic partnership with AT&T ensures continued service delivery through hybrid MNO model
• Resolution of FCC's spectrum utilization concerns
• Debt reduction opportunity from sale proceeds
• No impact on other key business segments (DISH TV, Sling, Hughes)

Negative

• Decommissioning of Boost Mobile's radio access network (RAN) over time
• Reduction in spectrum assets could limit future strategic options
• Transaction subject to regulatory approval and closing conditions

Insights

Telecommunications Industry Analyst

EchoStar's $23B spectrum sale to AT&T resolves regulatory issues while transforming Boost Mobile into a hybrid network operator with improved financial outlook.

This $23 billion spectrum sale represents a transformative transaction for EchoStar, addressing several critical challenges facing the company. The deal offloads 50 MHz of nationwide spectrum (3.45 GHz and 600 MHz bands) to AT&T while establishing a hybrid Mobile Network Operator model for Boost Mobile that leverages AT&T's infrastructure. This structure allows EchoStar to maintain its competitive position in the wireless market without the capital-intensive burden of full network ownership.

The transaction elegantly resolves the FCC's spectrum utilization concerns, which had become a significant regulatory overhang for EchoStar. By transferring spectrum to AT&T—an operator with established network capacity and deployment capabilities—the deal ensures these valuable frequency assets will be put to effective use serving American consumers.

Financially, this infusion of $23 billion dramatically strengthens EchoStar's balance sheet, with management specifically highlighting debt reduction as a priority use of proceeds. This debt relief, combined with the reduced capital expenditure requirements of the hybrid operator model, significantly improves the company's financial trajectory and operational flexibility.

The hybrid MNO structure represents an innovative middle ground between traditional facilities-based carriers and MVNOs. By maintaining its cloud-native 5G core while utilizing AT&T's radio access network, Boost can offer differentiated services while substantially reducing network maintenance costs. The agreement also preserves T-Mobile network access as a redundancy layer, ensuring service continuity for customers.

With core EchoStar businesses like DISH TV, Sling, and Hughes remaining unaffected, this transaction effectively compartmentalizes the company's wireless challenges while preserving its other revenue streams. The company's statement about evaluating options for its remaining spectrum assets suggests potential for additional strategic transactions that could further reshape its business model and balance sheet.

EchoStar to sell 3.45 GHz and 600 MHz spectrum licenses to AT&T for approximately $23 billion.

Boost Mobile will continue to compete in the U.S. wireless market as a hybrid MNO, offering subscribers connectivity through Boost Mobile's cloud-native 5G core and AT&T's cell sites.

ENGLEWOOD, Colo., Aug. 26, 2025 /PRNewswire/ -- EchoStar has entered into a definitive agreement with AT&T to sell the company's 3.45 GHz and 600 MHz spectrum licenses – a total of 50 MHz of nationwide spectrum – for approximately $23 billion, subject to regulatory approval. In addition, the companies have amended their network services agreement to create a hybrid mobile network operator (MNO) relationship. This transaction is part of EchoStar's ongoing efforts to resolve the Federal Communications Commission's (FCC) inquiries.

The license sale to AT&T will enable rapid deployment of the purchased spectrum to U.S. consumers across the country, as AT&T has the option to lease the spectrum, pending the closing of the spectrum sale. This arrangement benefits both AT&T and Boost Mobile subscribers.

"I'm enormously proud of the EchoStar team for deploying the world's first Open RAN network in record time, despite industry skepticism and in the face of the many challenges raised by the COVID-19 pandemic," said Charlie Ergen, co-founder and chairman, EchoStar. "EchoStar and Boost Mobile have met all of the FCC's network buildout milestones. However, this spectrum sale to AT&T and hybrid MNO agreement are critical steps toward resolving the FCC's spectrum utilization concerns."

Through Boost Mobile's hybrid MNO infrastructure, subscribers will continue to receive service from Boost Mobile's cloud-native 5G core connected to AT&T's leading nationwide network. While primary connectivity will be provided by AT&T's towers, Boost Mobile subscribers will continue to have access to the T-Mobile network. Customers will experience no interruptions to service. As a result of this transaction, elements of Boost Mobile's radio access network (RAN) will be decommissioned over time.

"This transaction puts our business on a solid financial path, further facilitating EchoStar's long-term success, and enhancing our ability to innovate and compete as a hybrid network operator. The proceeds of this transaction will be used for, among other things, retiring certain debt obligations and funding EchoStar's continued operations and growth initiatives," said Hamid Akhavan, CEO and president, EchoStar. "We continue to evaluate strategic opportunities for our remaining spectrum portfolio in partnership with the U.S. government and wireless industry participants."

Closing of the proposed transaction will occur after all required regulatory approvals are received and other closing conditions are satisfied.

The operations of EchoStar's other businesses, including DISH TV, Sling and Hughes, will not be impacted by this transaction.

About EchoStar Corporation
EchoStar Corporation (Nasdaq: SATS) is a premier provider of technology, networking services, television entertainment and connectivity, offering consumer, enterprise, operator and government solutions worldwide under its EchoStar^®, Boost Mobile^®, Sling TV, DISH TV, Hughes^®, HughesNet^®, HughesON™, and JUPITER™ brands. In Europe, EchoStar operates under its EchoStar Mobile Limited subsidiary and in Australia, the company operates as EchoStar Global Australia. For more information, visit www.echostar.com and follow EchoStar on X (Twitter) and LinkedIn.

©2025 EchoStar, Hughes, HughesNet, DISH and Boost Mobile are registered trademarks of one or more affiliate companies of EchoStar Corp.

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SOURCE EchoStar Corporation

FAQ

How much is AT&T paying EchoStar for the spectrum sale?

AT&T is paying approximately $23 billion for EchoStar's 3.45 GHz and 600 MHz spectrum licenses, totaling 50 MHz of nationwide spectrum.

How will the spectrum sale affect Boost Mobile customers?

Boost Mobile customers will experience no service interruptions. They will continue to receive service through Boost Mobile's cloud-native 5G core connected to AT&T's nationwide network, with continued access to T-Mobile's network.

What will EchoStar (SATS) do with the proceeds from the spectrum sale?

The proceeds will be used for retiring certain debt obligations and funding EchoStar's continued operations and growth initiatives.

Will the spectrum sale affect DISH TV, Sling, and Hughes operations?

No, the operations of EchoStar's other businesses, including DISH TV, Sling, and Hughes, will not be impacted by this transaction.

What regulatory approvals are needed for the EchoStar-AT&T spectrum deal?

The transaction requires FCC approval and must satisfy other closing conditions before completion. AT&T has the option to lease the spectrum pending the sale's closing.