EchoStar Sells Off Its Spectrum For More Than Its Total Market Cap

US telco EchoStar, valued around $14.5 billion on Wednesday morning, has sold its American spectrum allocation to AT&T for $23 billion.

Shares in EchoStar – which operates the Dish Network, Boost Mobile, and Sling TV – rose after the announcement that it had sold off the family silver. What's left is a smaller ISP with limited remaining assets and contracts.

The deal will see AT&T get hold of 30 MHz of nationwide 3.45 GHz mid-band spectrum and approximately 20 MHz of nationwide 600 MHz low-band spectrum, which the massive telco says it wants to complete its coverage of the US in these increasingly data-dependent times.

"This acquisition bolsters and expands our spectrum portfolio while enhancing customers' 5G wireless and home internet experience in even more markets," said John Stankey, AT&T CEO, in a canned statement. "We're adding fuel to our winning strategy of investing in valuable wireless and broadband assets to become America's best connectivity provider."

The move will see EchoStar become a hybrid mobile network operator under AT&T's aegis while handing over spectrum to the buyer, something it needs given the bandwidth its main competitors, T-Mobile and Verizon, have locked down. Dish and the Open RAN network EchoStar operates will remain unaffected by the deal.

The deal will also help the US Federal Communications Commission resolve complaints that the telco is sitting on unused spectrum. In May, the agency warned EchoStar that it was investigating its spectrum holdings because it wasn't using them to provide 5G services to Americans.

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"This transaction puts our business on a solid financial path, further facilitating EchoStar's long-term success, and enhancing our ability to innovate and compete as a hybrid network operator," said Hamid Akhavan, CEO of EchoStar. "The proceeds of this transaction will be used for, among other things, retiring certain debt obligations and funding EchoStar's continued operations and growth initiatives."

"We continue to evaluate strategic opportunities for our remaining spectrum portfolio in partnership with the US government and wireless industry participants."

In the meantime, EchoStar can concentrate on its remaining businesses, including its often-stalled satellite ambitions. It will continue to operate its defense telco business as well, via Hughes. ®