EchoStar has struck a $23 billion deal to sell a swath of wireless spectrum licenses to AT&T, part of the company's effort to resolve federal regulatory inquiries and shore up its balance sheet.
The definitive agreement, announced Tuesday, covers 50 MHz of nationwide spectrum, including 3.45 GHz and 600 MHz bands, pending regulatory approval. As part of the deal, EchoStar and AT&T amended their network services agreement to form a hybrid mobile-network-operator relationship, according to The Hollywood Reporter.
"This transaction puts our business on a solid financial path," said Hamid Akhavan, EchoStar's CEO and president, noting the proceeds will help retire debt and fund future operations.
EchoStar Chairman Charlie Ergen said the sale addresses the Federal Communications Commission's concerns over spectrum use, while benefiting subscribers of AT&T and Boost Mobile.
The FCC has questioned EchoStar's compliance with 5G build-out requirements after complaints from Elon Musk's SpaceX that unused spectrum should be reassigned.
AT&T said the acquisition will add licenses in more than 400 U.S. markets, bolstering its low-band and mid-band spectrum holdings.
"This acquisition bolsters and expands our spectrum portfolio while enhancing customers' 5G wireless and home internet experience in even more markets," AT&T CEO John Stankey said.
EchoStar emphasized that its other businesses, including Dish TV, Sling, and HughesNet, will not be affected by the transaction.
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