09:16 AM EDT, 08/26/2025 (MT Newswires) -- AT&T ( T ) has agreed to acquire certain wireless spectrum licenses from EchoStar ( SATS ) in an all-cash deal worth about $23 billion, as the telecommunications giant looks to expand its spectrum portfolio and 5G coverage.

AT&T ( T ) will purchase roughly 50 megahertz of low- and mid-band nationwide spectrum licenses, including around 30 MHz of 3.45 gigahertz mid-band spectrum and about 20 MHz of 600 MHz low-band spectrum, it said in a Tuesday statement. The licenses cover more than 400 markets across the US.

"This acquisition bolsters and expands our spectrum portfolio while enhancing customers' 5G wireless and home internet experience in even more markets," AT&T ( T ) Chief Executive John Stankey said. Shares of the company were up 0.5% in the most recent premarket activity, while EchoStar ( SATS ) surged 75%.

The deal, which requires approval from regulators, is expected to be completed in the middle of next year. AT&T ( T ) doesn't expect the transaction to have a material impact on its per-share adjusted earnings and free cash flow in the first two years after completion, and estimates the deal to be accretive to the metrics in the third year.

AT&T ( T ) plans to deploy the acquired mid-band licenses, which are compatible with its 5G network, "as soon as possible," and said it maintains its previously issued capital return and fiber expansion targets. The company also reiterated its full-year 2025 outlook, as well as its long-term guidance for adjusted EPS and service revenue.

AT&T ( T ) anticipates the acquisition to accelerate and expand availability of its advanced fixed wireless home internet service and support sustained growth in its subscriber base for home internet and 5G wireless services. The company forecasts long-term operating efficiencies, with the licenses expected to reduce the need to boost network capacity through the construction of additional cell sites.

The transaction is expected to put EchoStar's ( SATS ) business on a "solid financial path," with the proceeds to be used for "retiring certain debt obligations" and financing the company's continued operations and growth initiatives, CEO Hamid Akhavan said in a separate statement.

Additionally, AT&T ( T ) and EchoStar ( SATS ) amended their long-term wholesale network services agreement to enable the latter to operate as a hybrid mobile network operator providing wireless service under the Boost Mobile brand. The amendment reflects EchoStar's ( SATS ) ongoing efforts to resolve inquiries by the Federal Communications Commission, the company said in its statement.

"EchoStar ( SATS ) and Boost Mobile have met all of the (Federal Communications Commission's) network buildout milestones," according to EchoStar ( SATS ) Chairman Charlie Ergen. "However, this spectrum sale to AT&T ( T ) and hybrid (mobile network operator) agreement are critical steps toward resolving the FCC's spectrum utilization concerns."

EchoStar ( SATS ) said its other business operations, including DISH TV, will not be impacted by the deal.