EchoStar Corp ( SATS ). stock is trading higher on Tuesday.

The satellite communication company is reportedly engaged in talks to sell some of its wireless spectrum to Verizon Communications Inc. ( VZ ) .

Bloomberg reported that the discussions center on EchoStar's ( SATS ) AWS-3 licenses, which are valuable for carrying 5G signals. The company has assigned a carrying value of $9.8 billion to the spectrum in regulatory filings.

While a deal with Verizon may not reach those levels, investors reacted positively to the potential transaction.

In August, EchoStar ( SATS ) inked a landmark $23 billion deal to sell a significant portion of its wireless spectrum portfolio to AT&T Inc. ( T ) .

In September, EchoStar ( SATS ) announced that it would sell its AWS-4 and H-block spectrum licenses for approximately $17 billion to Elon Musk's SpaceX.

The deal consideration consists of up to $8.5 billion in cash and up to $8.5 billion in SpaceX stock, valued as of the date of entry into the definitive agreement.

Bloomberg noted Tuesday that the potential sale follows EchoStar's ( SATS ) recent strategy shift. Last month, the company began offloading spectrum holdings to help avoid bankruptcy and address a Federal Communications Commission investigation into whether it was deploying the airwaves it had secured quickly enough.

Another portion of the AWS-3 band is scheduled to be auctioned by the federal government next year.

Citing a recent interview, the report highlighted that EchoStar ( SATS ) CEO Hamid Akhavan signaled the company's willingness to continue monetizing parts of its spectrum portfolio, including AWS-3 licenses. He noted that EchoStar ( SATS ) no longer intends to build out a complete nationwide wireless network to compete with industry giants.

Price Action: SATS stock is up 6.59% at $78.50 during the premarket session at the last check on Tuesday.

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