AT&T Buys EchoStar Spectrum for $23 Billion to Expand 5G Network

AT&T just made a massive move that could improve your wireless service and give you more home internet options. The telecom giant agreed to pay $23 billion to buy wireless spectrum licenses from satellite company EchoStar, adding valuable airwaves that will help AT&T expand its 5G network coverage across the country.

Earlier this week, AT&T announced a deal that will add about 50 MHz of spectrum covering virtually every market in the US - that's over 400 markets total. Think of spectrum like invisible highways for your phone calls, texts, and data. More spectrum means less congestion and potentially faster speeds for AT&T customers.

The purchase includes two types of spectrum that work well for different purposes. The mid-band spectrum (3.45 GHz) will help boost 5G speeds in cities and suburbs, while the low-band spectrum (600 MHz) travels farther and works better for rural coverage. AT&T plans to start using these airwaves as soon as the deal closes, which is expected to happen in mid-2026.

For consumers, this could mean better 5G service and more competition in home internet. AT&T says it will use the new spectrum to expand its fixed wireless internet service called AT&T Internet Air to more areas. This gives people in areas without fiber internet another high-speed option that doesn't require installing cables to your home.

The deal also keeps Boost Mobile in business. EchoStar, which owns the Boost brand, will continue offering wireless service by using AT&T's network through a wholesale agreement. This means Boost customers should see their service continue as usual, potentially with improved coverage since they'll be using AT&T's enhanced network.

AT&T says it can afford this massive purchase without changing its other plans, including its commitment to buy back $20 billion worth of company stock over the next few years. The company expects to pay back the debt from this deal within about three years while still expanding its fiber internet network as planned.

While $23 billion sounds enormous, it represents AT&T's bet that owning more spectrum will help it compete better against Verizon and T-Mobile, especially as people use more data for streaming, video calls, and other online activities. For AT&T customers, the payoff should be fewer dropped calls, faster data speeds, and better service in areas that currently have weak coverage.