:max_bytes(150000):strip_icc()/GettyImages-2218996342-d5cca43946244d18a6884d379378d442.jpg "EchoStar Said to Be Looking at More Spectrum Sales, This Time to Verizon")
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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.
Verizon shares were up about 1% recently.
