AT&T announced Tuesday that it has agreed to pay EchoStar $23 billion in cash to acquire 5G network-compatible licenses in more than 400 markets across the U.S.
The deal enhances the AT&T mobile network which was already the largest in the U.S., providing approximately 30 MHz of nationwide coverage in the mid-band spectrum (3.45 GHz) and about 20 MHz of coverage in the low-band spectrum (600 MHz).
The deal appears to be a response by EchoStar to a threat of revocation by the Federal Communications Commission if the company did not begin to use their inventory of existing licenses, as required by those licenses, to build out a nationwide 5G network. EchoStar owns both the DISH Network and the wireless service Boost Mobile.
In an email to The Texas Lawbook, AT&T’s David McAtee said senior vice president-assistant general counsel Darrell Guy and vice president-associate general counsel Michael Pratt led the deal team for AT&T, supported by outside counsel Sullivan & Cromwell. Antitrust issues were handled vice president-associate general counsel Brinkley Tappan, with outside counsel from Arnold & Porter.
“This transaction involved a great deal of my time, and as usual, our Legal Department team did outstanding work,” said McAtee, who serves as AT&T’s senior executive vice president and general counsel.
In June, the Wall Street Journal reported that EchoStar was considering bankruptcy protection to halt or delay the FCC threat of revocation.
The deal is expected to close in mid-2026. In the meantime, AT&T has the option to lease a portion of the licenses to allow their near-immediate use while the sale moves through the regulatory approval process.
Mark Curriden contributed to this report.