AT&T trails T-Mobile and Verizon in the U.S. wireless market, lacking the mid-band holdings that power T-Mobile's 5G speed and coverage and Verizon's urban capacity. AT&T has leaned on fiber bundles and a patchwork of spectrum while adding 401,000 wireless subscribers in the recent quarter. Rising mobile data demand and accelerating 5G adoption have increased spectrum scarcity and competitive pressure. The $23 billion agreement to buy 50 MHz of low-band and mid-band spectrum from EchoStar, covering over 400 U.S. markets, aims to bolster AT&T's 5G and fixed wireless broadband capabilities and continues a wholesale partnership with Boost Mobile.
T-Mobile leads with its extensive mid-band spectrum, acquired through its 2020 merger with Sprint, giving it an edge in 5G speed and coverage. Verizon boasts robust C-band holdings, excelling in urban capacity, while AT&T has lagged everywhere, relying on a patchwork of spectrum and its growing fiber network to stay competitive. With mobile data demand surging and 5G adoption accelerating, spectrum scarcity intensifies the race for network superiority.
AT&T's agreement to purchase 50 MHz of low-band (20 MHz, 600 MHz) and mid-band (30 MHz, 3.45 GHz) spectrum from EchoStar for $23 billion is a strategic power play. The all-cash deal, expected to close by mid-2026 pending Federal Communications Commission and Justice Dept. antitrust approval, covers over 400 U.S. markets, bolstering AT&T's 5G and fixed wireless broadband (Internet Air) capabilities.
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