Tuesday, August 26, 2025

EchoStar to Sell Mid-Band Spectrum Assets to AT&T, in Shift of Business Model

AT&T is purchasing spectrum licenses from Echostar (30 MHz of nationwide 3.45 GHz mid-band spectrum and approximately 20 MHz of nationwide 600 MHz low-band spectrum). The all-cash transaction for $23 billion represents licenses covering virtually every market across the United States, AT&T notes. 


The spectrum sale to AT&T marks a significant strategic shift for EchoStar's mobile communications business, refocusing the company from a facilities-based network operator to a mobile virtual network operator (MVNO) that also operates its own core 5G network.


After selling its 3.45 GHz and 600 MHz spectrum licenses to AT&T, EchoStar will still retain rights to spectrum assets for mobile service in the AWS-4 (2 GHz) band and S-band MSS (Mobile Satellite Service), including 40 MHz in the 2000–2200 MHz range. 


EchoStar's strategy following the sale to AT&T includes both terrestrial 5G and emerging satellite connectivity use cases, including potential direct-to-device applications. 


EchoStar’s Boost Mobile operations will primarily be powered by wholesale access to AT&T’s network, though it also uses T-Mobile radio access assets as well. 


Though EchoStar began life as a satellite services provider, it began in the 2010s to move into terrestrial mobility. Early on, the company envisioned a role as a major facilities-based retailer of mobile services. As the U.S. mobile market solidified as a market led by AT&T, Verizon and T-Mobile, the opportunity to compete effectively as a fourth provider dimmed. 


The latest thinking is to focus on more niche roles such as satellite direct to device use cases. 


Era

Focus

Strategic Action

Outcome/Impact

1980s–2000s

Satellite TV and broadband

Launch of DISH, Hughes acquisition

Dominant satellite TV provider

2010s

Diversification, spectrum acquisition

AWS-4, 5G, Open RAN initiatives

Entry into mobile and 5G market

2019–2023

Mobile network buildout, M&A activity

DISH/EchoStar merger, network expansion

Boost Mobile, 5G deployment on owned facilities 

2024–2025

Hybrid MNO, satellite-terrestrial innovation

AT&T spectrum sale, Open RAN/D2D focus

Partnership  model; spectrum held for direct-to-device services


No comments:

Yes, Follow the Data. Even if it Does Not Fit Your Agenda

When people argue we need to “follow the science” that should be true in all cases, not only in cases where the data fits one’s political pr...