Verizon in Talks to Boost 5G with EchoStar Spectrum Deal
Verizon Communications is in talks to buy wireless spectrum licences from EchoStar, potentially boosting its 5G capabilities. The deal, if finalised, could see Verizon join AT&T and SpaceX as recent buyers of EchoStar's spectrum. Analysts at BNP-Paribas view the potential deal as broadly neutral for Verizon, slightly positive for T-Mobile US, and slightly negative for US cable players.
Verizon is negotiating to acquire EchoStar's AWS-3 licences, which are crucial for carrying 5G wireless signals. EchoStar values these licences at $9.8 billion. By purchasing these licences now, Verizon could reduce its overall costs and avoid the uncertainty of the FCC's planned auction in mid-2026. EchoStar expects to hold $24.1 billion in cash after using the sale proceeds to repay debt. If the deal goes through, it will further strengthen Verizon's position in the 5G market, following similar acquisitions by AT&T and SpaceX.
Verizon's potential purchase of EchoStar's AWS-3 licences could significantly impact the wireless spectrum landscape. While analysts view the deal as neutral for Verizon, it could have slight positive implications for T-Mobile US and slight negative impacts on US cable players. The final agreement, valued at $9.8 billion, remains pending.
