In a move that could shape the non-terrestrial network (NTN) market, EchoStar announced an agreement Monday to sell SpaceX its AWS-4 and H-block spectrum for about $17 billion, equally divided between cash and stock. The companies also agreed to enable EchoStar's Boost Mobile subscribers to access Starlink’s direct-to-cell service, and SpaceX will underwrite $2 billion in interest payments payable on EchoStar debt through November 2027. Industry officials acknowledged there are numerous unanswered questions about the deal and how it will be viewed by the FCC.
T-Mobile had zero interest in the 3.45 GHz spectrum AT&T is buying from EchoStar as part of a $23 billion deal (see 2508260005), T-Mobile executives told attendees at financial conferences Thursday, echoing the sentiments of Verizon (see 2509030027). AT&T plans to quickly deploy the spectrum (see 2509050024).
AT&T will be able to deploy the 3.45 GHz spectrum that it plans to buy from EchoStar almost immediately after regulators clear the purchase, said Jenifer Robertson, AT&T's general manager of mass markets, at a Citi financial conference Thursday. AT&T CFO Pascal Desroches said at a Bank of America conference that the company was immediately interested in the spectrum when it became clear that EchoStar might sell some of its large portfolio.
AT&T’s agreement to buy EchoStar spectrum for $23 billion (see 2508260005) will likely have a short-term positive effect and a long-term negative effect for tower companies, MoffettNathanson’s Nick Del Deo told investors Thursday. MoffettNathanson cut its target prices for American Tower by 3%, Crown Castle by 7% and SBA by 5%. “We continue to view the group as attractive, but not pound-the-table attractive,” the analyst said.
Verizon wasn’t interested in the spectrum that AT&T is buying from EchoStar, Sowmyanarayan Sampath, CEO of Verizon Consumer Group, said at a Bank of America financial conference Wednesday. Verizon is very happy with its spectrum position, he said. AT&T announced last week an agreement to buy EchoStar spectrum for $23 billion (see 2508260005).
Odds are that EchoStar will continue pursuing its direct-to-device constellation plans in light of the $23 billion spectrum sale to AT&T, which was announced last week (see 2508260052), satellite and spectrum consultant Tim Farrar wrote Sunday. He said it seems likely that EchoStar is looking at other spectrum deals, and available options include AT&T swapping the 600 MHz spectrum it's buying from EchoStar with T-Mobile for that company's C-band spectrum, or Verizon buying EchoStar's AWS-3 spectrum and leasing its AWS-4 in urban areas. It's also possible that no wireless carrier ends up interested in EchoStar's spectrum at the prices it's asking, he noted. EchoStar's D2D constellation plans become moot only if T-Mobile buys all of EchoStar's midband spectrum, with some to be shared with SpaceX, Farrar said. As long as the FCC signs off on the EchoStar/AT&T deal, it "seems more likely than not that at least the first stage of EchoStar’s constellation will be built."
The push by the first Trump administration to create a fourth national wireless carrier -- after Sprint exited the market when T-Mobile bought it -- could be over, industry experts said following the announcement that AT&T was buying much of EchoStar’s spectrum portfolio for $23 billion (see 2508260052).
In the biggest wireless deal since T-Mobile bought Sprint five years ago, AT&T announced Tuesday that it’s buying EchoStar spectrum for $23 billion (see 2508260005). EchoStar will continue to offer wireless service, but primarily as a mobile virtual network operator riding on AT&T’s network.
Representatives of T-Mobile and Grain said they met with FCC Wireless Bureau staff to discuss their pending low-band transaction. Grain Management agreed to buy T-Mobile's 800 MHz spectrum in exchange for cash and Grain's 600 MHz spectrum portfolio (see 2503210033). Grain plans to work with utilities and others to deploy services using the 800 MHz spectrum.
EchoStar and the Rural Wireless Association urged the FCC to reject waivers allowing Grain Management's proposed purchase of T-Mobile's 800 MHz spectrum in exchange for cash and Grain's 600 MHz spectrum portfolio (see 2503210033). Utility groups weighed in to support the transaction. Reply comments were posted Wednesday in docket 25-178, closing out the pleading cycle.