AT&T acquires EchoStar spectrum assets for $23B

Under pressure US satellite service provider EchoStar struck a deal to sell its 3.45GHz and 600MHz spectrum licences to AT&T for $23 billion, a move which will lead to the former’s Boost Mobile brand becoming what it termed a hybrid MNO.

AT&T will gain 50MHz of spectrum in the arrangement, which is subject to regulatory approval, assets it noted cover almost every market in the US.

In a statement, EchoStar explained its mobile unit would continue to compete in the US wireless market using its cloud-native 5G core and AT&T’s cell sites, having signed an amended service agreement with the operator.

Boost Mobile customers will initially retain access to T-Mobile US’ network to ensure there are no service issues.

Elements of Boost Mobile’s RAN are set to be decommissioned over time as a result of the deal.

Probes
Earlier this year the Federal Communications Commission (FCC) began probes into Boost Mobile’s network build, which started under the guise of Dish Wireless, and spectrum usage.

EchoStar explained the AT&T deal is part “ongoing efforts to resolve” the FCC’s inquiries, noting the sale would enable “rapid deployment of the purchased spectrum to US consumers across the country, as AT&T has the option to lease the spectrum, pending the closing of the spectrum sale”.

Co-founder and chair of the company Charlie Ergen said he is “enormously proud of the EchoStar team for deploying the world’s first open RAN network in record time, despite industry scepticism and in the face of the many challenges raised by the Covid-19 pandemic”.

“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 utilisation concerns.”

The satellite company plans to spend the proceeds on “retiring certain debt obligations”, and funding its continued operations and “growth initiatives”.

CEO Hamid Akhavan noted it would “continue to evaluate strategic opportunities for our remaining spectrum portfolio in partnership with the US government and wireless industry participants”.