EchoStar CORP (ECHO)

EchoStar Corporation is a Nevada holding company, organized in October 2007, whose Class A common stock trades on the NASDAQ Global Select Market under the symbol "SATS." The text describes a business built around wireless spectrum licenses, a 5G network and a Wireless business that is transitioning to a Hybrid MNO model, along with HughesNet customers and related services. In 2025, an FCC review of EchoStar's build-out and other obligations under its spectrum licenses led the company to agree to sell a material amount of spectrum.

Under the AT&T License Purchase Agreement of August 25, 2025, EchoStar agreed to sell its 3.45-3.55 GHz and 600 MHz spectrum licenses, plus a 99-year extension of existing leases for AT&T's exclusive use of certain Hawaii spectrum licenses, for $22.650 billion in cash, subject to adjustments and a minimum price of $18.6 billion. Closing is expected in the first half of 2026. Proceeds would repay the DISH 2021 Intercompany Loan and redeem $3.5 billion of 11 3/4% Senior Secured Notes due 2027.

Under the SpaceX License Purchase Agreement, as amended and restated on November 5, 2025, EchoStar agreed to sell its AWS-4 and H-Block spectrum, 50 MHz in total, along with up to 15 MHz of AWS-3 spectrum and certain international rights. Total consideration is about $20 billion, with up to $11 billion paid in SpaceX Class A common stock valued at $212 per share and the rest in cash. Part of the consideration will pay off roughly $9.8 billion of secured and convertible seller notes. The spectrum first moves to a trust, expected in the first half of 2026, and then to SpaceX, expected around November 30, 2027. Both transactions require FCC and Department of Justice approvals. The agreements also contemplate commercial arrangements that let EchoStar's wireless subscribers access SpaceX's Starlink Direct to Cell text, voice and broadband services, and a fee-based referral program for HughesNet and new Starlink customers. EchoStar has begun installation and other services for new Starlink customers.

On the network side, EchoStar's subsidiary DISH Wireless has a Network Services Agreement with AT&T Mobility. Under the Sixth Amendment, AT&T provides services through December 31, 2031, with options to extend to 2033 or 2035 and minimum purchase commitments. In the Hybrid MNO model, EchoStar runs the network core and billing and provisioning software, while AT&T supplies base stations, radios, RAN software and spectrum. EchoStar has begun decommissioning parts of its 5G Network that the Hybrid MNO will not use. Its principal executive offices are at 9601 South Meridian Boulevard, Englewood, Colorado.