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.
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