EchoStar (SATS) Rockets 85% on $23-Billion License Sale to AT&T, Resolving FCC Dispute

We recently published 10 Stocks Beating Wall Street at its Own Game. EchoStar Corporation (NASDAQ:SATS) is one of the top performers of Tuesday.

EchoStar Corp. spiked up by as much as 85 percent at intra-day trading on Tuesday to hit a new all-time high of $55.19, before closing slightly lower towards the end of the session as investors cheered its wireless spectrum licenses sale to AT&T for $23 billion.

In a statement, EchoStar Corporation (NASDAQ:SATS) said it entered into a definitive agreement with AT&T for the sale of its 3.45 GHz and 600 MHz spectrum licenses—a total of 50 MHz of nationwide spectrum, as part of its resolution to its battle with the Federal Communications Commission.

In addition, EchoStar Corporation (NASDAQ:SATS) and AT&T have amended their network services agreement to create a hybrid mobile network operator (MNO) relationship.

The license sale to AT&T will enable rapid deployment of the purchased spectrum to US consumers across the country, with AT&T given the option to lease the spectrum, pending the closing of the spectrum sale.

“EchoStar and Boost Mobile have met all of the FCC’s network buildout milestones. However, this spectrum sale to AT&T and hybrid MNO agreement are critical steps toward resolving the FCC’s spectrum utilization concerns,” said EchoStar Corporation (NASDAQ:SATS) co-founder and Chairman Charlie Ergen.

Through Boost Mobile’s hybrid MNO infrastructure, subscribers will continue to receive service through its cloud-native 5G core, primarily connected to AT&T’s nationwide network.

Boost Mobile users will also retain access to T-Mobile’s network, while AT&T will provide the main coverage. However, Boost Mobile’s radio access network will be gradually decommissioned as part of the transition.

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