EchoStar’s Spectrum Fire Sale Continues: Verizon Emerges as Latest Buyer in Strategic Shift

Another day, another spectrum deal—EchoStar can't seem to unload its airwaves fast enough.

The Telecom Gamble

Fresh off previous spectrum divestments, the communications giant is now reportedly in advanced talks with Verizon. This isn't just portfolio pruning—it's a full-scale strategic retreat from spectrum ownership.

Verizon's Frequency Feast

While EchoStar sheds assets like last season's technology, Verizon continues its wireless shopping spree. The carrier's appetite for spectrum appears endless—because in telecom, bandwidth is the new black.

Because nothing says 'strong balance sheet' like selling your core assets to competitors while Wall Street analysts nod approvingly. The communications industry continues its fascinating transformation from infrastructure owners to spectrum landlords—proving once again that sometimes the real money isn't in providing service, but in selling the right to provide it.

Key Takeaways

• EchoStar is reportedly in talks with Verizon Communications about selling more of its spectrum licenses.
  
• EchoStar previously sold spectrum licenses to AT&T and Elon Musk's Space X as part of its effort to satisfy issues raised in a federal regulatory investigation.

EchoStar (SATS) shares ROSE Tuesday morning following a report the satellite TV and mobile phone provider is in talks to sell more of its wireless spectrum, this time to Verizon Communications (VZ).

Bloomberg reported that the discussions center on EchoStar’s AWS-3 licenses, used for 5G cellphone service. The company has put a value on those licenses at $9.83 billion.

Why This News Is Significant

Another multi-billion-dollar sale WOULD strengthen EchoStar’s financial footing while highlighting the value of spectrum rights in the race to expand wireless networks.

Earlier this month, the owner of Dish TV and Boost Mobile sold AWS-4 and H-block spectrum allocations to Elon Musk's rocket and satellite company SpaceX for about $17 billion. Prior to that, it sold 50 megahertz of its nationwide low- and mid-band spectrum allocations to AT&T (T) worth $23 billion. Both of those moves were made to satisfy federal regulators who were investigating the firm over whether it was meeting certain requirements for both its wireless and satellite rights.

Since those two deals, shares of EchoStar have more than doubled, hitting an all-time high earlier this month. The shares were up 3% in recent trading.

Another section of EchoStar’s AWS-3 allocation will be auctioned off by the federal government later this year, Bloomberg reported.

EchoStar did not respond to Investopedia's request for comment. 

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Verizon shares were up about 1% recently.