EchoStar surprised everyone recently with one of the largest spectrum deals in recent memory. Recently, EchoStar announced the sale of its 600 MHz licenses and 3.45 GHz spectrum to AT&T for a jaw-dropping $22.65 billion.
To put that number in perspective: that’s about a 70% gain over the $9.1 billion book value EchoStar originally paid for this spectrum. While it’s generally believed this was not the path Charlie Ergen had wanted, it’s still not bad for any company.
The irony here is almost poetic. I had just finished writing about how the upcoming AWS-3 auction could impact EchoStar’s future. Clearly, they had other plans ongoing – and those plans involved backing up a very large money truck to AT&T’s headquarters.
Breaking Down the AT&T–EchoStar Spectrum Deal
Here’s where things get interesting:
AT&T is getting:
- EchoStar’s nationwide 600 MHz licenses
- Their 3.45 GHz spectrum holdings
- A major upgrade to their spectrum portfolio
AT&T is NOT getting:
- The 700 MHz E-block spectrum
Now, that last point is where my telecom detective instincts start tingling. AT&T is literally the only logical buyer for the 700 E-block—they own the complementary D-block spectrum and already hold plenty of 700 MHz spectrum in key markets. A combination would have created efficiency gains.
So why leave it out? Most likely because it just wasn’t worth enough to matter. In telecom, the dog that doesn’t bark is telling you the bone isn’t worth fighting over, meaning that the deal you don’t see often signals that the asset wasn’t valuable enough.
Why AT&T Is Suddenly Back in the 600 MHz Game
Here’s the surprise that has many buzzing in the industry (and I’m one of them): AT&T is back in the 600 MHz game.
Let’s rewind a few years. Back in the 2016 broadcast incentive auction, AT&T walked away with only a sliver of 600 MHz spectrum, then sold it off, and seemed content to pretend this spectrum band didn’t exist.
Fast-forward to 2025, and they’re now willing to pay billions for a serious position in 600 MHz. It’s like someone who swore off pizza suddenly showing up with a five-pizza order.
So, what changed? A few possibilities:
Deployment strategy: Maybe AT&T realized losing their low-band coverage layer in 5G was a costly mistake worth $22.65 billion to fix.
Swap potential: They could be planning to trade 600 MHz with T-Mobile or Verizon for spectrum they value more.
They’re thinking about 6G: Forward-looking spectrum strategy for next-generation services
The swap scenario is particularly intriguing. T-Mobile dominates 600 MHz, creating what the FCC calls a “concentration problem.” The FCC generally prefers that no single carrier control more than 30% of low-band spectrum in any market. AT&T’s acquisition could actually solve this regulatory headache while creating a more liquid secondary market for 600 MHz spectrum that’s been gathering dust for nearly a decade.
Technical Reality Check: Why Low-Band Matters
Now for a little physics (don’t worry, I’ll keep it digestible).
When frequencies sit too close together, you can get passive intermodulation (PIM)—basically, interference. Think of it like two overlapping conversations at a party where no one can hear clearly.
AT&T and Verizon already hold a lot of low-band spectrum, so adding 600 MHz to the mix could create interference issues that would require careful network engineering to resolve. It’s a solvable problem, but it adds complexity and cost.
When AT&T originally walked away from 600 MHz, they effectively gave up a potential nationwide low-band coverage layer. Still, low-band spectrum is invaluable. It’s like the bass line in a song – you might not notice it, but without it, everything else sounds thin and incomplete. Low-band signals travel farther and penetrate buildings better than mid- or high-band, making them essential for broad, reliable coverage.
My Take: Deploy or Swap?
Many people in the industry I speak with believe AT&T’s endgame is to swap this spectrum with T-Mobile. They posit that AT&T would swap the 600 MHz for T-Mobile’s upper C-band spectrum. It’s plausible because AT&T is adjacent to those upper C-band positions and, with that spectrum, they would have a much stronger 5G position vs. Verizon.
However, it just feels a bit risky if that’s the real intention.
If you’re in a publicly traded company, you would have to take this kind of deal to the Board of Directors for approval. Those Board members have a fiduciary duty to the shareholders of the company. Doing a swap is never a simple thing.
It sounds good on paper, but there are significant strategic and tax implications that have to be considered. I’ve seen attempted swap deals change or get put on “pause” for a variety of issues.
Among the most strategic considerations here is that you could be handing your competitor one of the largest, deepest contiguous low-band spectrum positions in the U.S. — a position that could provide leadership not just in 5G but 6G as well.
So, as a Board member, you’re asking the leadership of the company why you should vote to spend over $10B (roughly what AT&T might be paying for the $600 MHz alone) with the intention of gifting your biggest competitor with an even stronger position in a deal that isn’t certain? Fundamentally, how does this meet the needs of the shareholders?
Back in Auction 1000, AT&T’s very “light” bidding effectively handed 600 MHz to T-Mobile at a bargain. T-Mobile used it to seize the 5G leadership mantle and hasn’t looked back since. Would AT&T really repeat that mistake?
I would hope that AT&T is already preparing to deploy that spectrum. I expect they’ll likely seek FCC relief during the approval process to give them the time to deploy it. If they don’t get that relief, a swap may be a more likely scenario, and I’ll change my tune. However, if they do get that build relief, expect deployment (and every 600 MHz holder not named T-Mobile will celebrate).
How This Deal Impacts Open RAN in the U.S.
Here’s a subplot that deserves attention: this deal effectively kills the only major Open RAN deployment in the United States.
For those unfamiliar with Open RAN, it’s like a “universal remote control” for wireless networks. Instead of buying everything from one vendor, carriers can mix and match components—boosting competition, lowering costs, and reducing dependence on foreign suppliers.
EchoStar/Dish was the U.S. poster child for Open RAN, drawing strong interest from policymakers concerned about supply chain security. With their exit from facilities-based wireless, pioneering work becomes academic.
The irony? The same political voices that originally championed Open RAN to reduce foreign reliance may now approve a deal that eliminates America’s flagship example. Politics makes for strange bedfellows, but telecom policy makes for even stranger ones.
Following the Money: What Spectrum Really Cost
- Let me put on my spectrum analyst hat for a moment and try to reverse-engineer the pricing here. Based on recent deals:
- 600 MHz likely sold around $2.00 per MHz-pop (~70% appreciation).
- 3.45 GHz likely went for $1.00 per MHz-pop (~30% appreciation).
If AT&T sees 600 MHz as swap material (perhaps with T-Mobile), they might internally value it differently, putting more weight on 3.45 GHz. Either way, 3.45 GHz is the near-term prize. AT&T has worked for years to consolidate their position there, including its ongoing bid for U.S. Cellular’s 3.45 GHz spectrum. This deal helps them close the gap with Verizon and T-Mobile in mid-band 5G.
The Satellite Wild Card
Here’s where EchoStar’s strategy gets really interesting. While they’re selling off their terrestrial wireless spectrum, they’re doubling down on satellite communications. They own Mobile Satellite Service (MSS) spectrum that’s perfectly suited for direct-to-device satellite services like texting or emergency communications via satellite.
This isn’t just speculation. EchoStar has already announced plans for satellite-based direct-to-device operations. With companies like SpaceX pushing hard into this space, EchoStar may be positioning themselves not as a failed wireless carrier but as a key player in the satellite communications revolution.
One open question: Will the FCC let them keep MSS spectrum while divesting everything else? Given tensions between FCC Chairman Carr and EchoStar Chairman Charlie Ergen, who knows? I think the bigger question everyone is asking now is, “Is it too late?”
What This Means for the Industry
This is a textbook inflection point—the kind that shifts an entire industry:
- For AT&T: They get a rapid spectrum infusion to deploy, particularly in 3.45 GHz, where they can immediately start catching up in the 5G race. Expect aggressive deployment in both fixed wireless and mobile broadband.
- For EchoStar: An acknowledgment that the three-network vision is over. The U.S. is officially a three-carrier market (AT&T, Verizon, T-Mobile), with others operating as mobile virtual network operators (MVNOs) on those networks.
- For the broader market: This creates a template for other spectrum deals. EchoStar still owns additional spectrum holdings, and there’s widespread expectation that more sales are coming. The AWS-3 spectrum they own is likely next on the block.
- For consumers: More spectrum in the hands of major carriers could mean better coverage and maybe more competitive pricing—though telecom history teaches us to treat that “maybe” carefully.
What’s Next?
The deal still needs regulatory approval, but the FCC has signaled support for moving spectrum into the hands of carriers who will deploy it— so it seems like this deal should happen.
More immediately, expect to see:
- Additional EchoStar spectrum sales — They own AWS-3 and other holdings that are now clearly on the market
- Aggressive 3.45 GHz deployment by AT&T — This is their chance to catch up in mid-band 5G
- Potential spectrum swaps — Notwithstanding my skepticism, we have to acknowledge that we could see some swaps in that 600 MHz
- More industry consolidation — This deal creates a template and removes a potential competitor, coming on the heels of the close of the U.S. Cellular acquisition by T-Mobile. The industry is becoming far more concentrated.
The Bottom Line
EchoStar’s bold attempt to build a fourth national wireless network is officially over, but it wasn’t a failure. They proved that innovative approaches like Open RAN could work at scale, pushed technological boundaries, and walked away with a $22.65 billion payday (and more possibly to come).
Sometimes the most important lessons come from ambitious efforts that don’t quite work out as planned. EchoStar tried to build something different, and while they couldn’t make the business model work, they’ve demonstrated technologies and approaches that will influence how wireless networks evolve.
The wireless industry is now officially a three-carrier game, with everyone else playing by their rules. Whether that’s good for competition, innovation, and consumers remains to be seen. But one thing’s for certain: the great spectrum shuffle of 2025 has officially begun.
As always, feel free to reach out with questions, corrections, or your own theories on what AT&T plans to do with its new 600 MHz spectrum. If you’ve got spectrum questions—I’m always up for a conversation.