DALLAS (dpa-AFX) - AT&T Inc. (T), a telecom holding company, said on Tuesday that it has agreed to buy certain wireless spectrum licenses from EchoStar Corporation (SATS) for around $23 billion in cash.
John Stankey, CEO of AT&T, said: 'This acquisition bolsters and expands our spectrum portfolio while enhancing customers' 5G wireless and home internet experience in even more markets.'
AT&T intends to finance the spectrum purchase with cash on hand and incremental debt. The transaction is expected to be closed in mid-2026.
AT&T will acquire around 30 MHz of nationwide 3.45 GHz mid-band spectrum and approximately 20 MHz of nationwide 600 MHz low-band spectrum. These licenses cover virtually every market across the U.S., which includes over 400 markets in total, significantly strengthening AT&T's low-band and mid-band spectrum holdings.
AT&T intends to begin deploying these mid-band licenses, which are compatible with its 5G network, as soon as possible.
Looking ahead, for fiscal 2025, the company has reaffirmed its guidance. AT&T still anticipates adjusted income per share of $1.97 to $2.07. Excluding items, the company continues to project EBITDA growth of 3% or more.
SATS was up by 60.21% at $48.02 in the pre-market trade on the Nasdaq.
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