Charlie Ergen‘s telecom giant EchoStar unveiled a definitive agreement with AT&T to sell spectrum licenses for approximately $23 billion.

The company said on Tuesday that the deal covers “a total of 50 MHz of nationwide spectrum,” including 3.45 GHz and 600 MHz spectrum, subject to regulatory approval. “In addition, the companies have amended their network services agreement to create a hybrid mobile network operator (MNO) relationship,” the firms said. “This transaction is part of EchoStar‘s ongoing efforts to resolve the Federal Communications Commission’s inquiries.”
   
Said EchoStar co-founder and chairman Ergen: “This arrangement benefits both AT&T and Boost Mobile subscribers. I’m enormously proud of the EchoStar team for deploying the world’s first Open RAN network in record time, despite industry skepticism and in the face of the many challenges raised by the COVID-19 pandemic.” He added: “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.”

Added Hamid Akhavan, CEO and president of EchoStar: “This transaction puts our business on a solid financial path, further facilitating EchoStar’s long-term success, and enhancing our ability to innovate and compete as a hybrid network operator. The proceeds of this transaction will be used for, among other things, retiring certain debt obligations and funding EchoStar’s continued operations and growth initiatives.”

He concluded: “We continue to evaluate strategic opportunities for our remaining spectrum portfolio in partnership with the U.S. government and wireless industry participants.”

The operations of EchoStar’s other businesses, including Dish TV, Sling and Hughes, “will not be impacted by this transaction,” the company highlighted.

AT&T said the licenses cover more than 400 markets across the U.S., strengthening its low-band and mid-band spectrum holdings. “This acquisition bolsters and expands our spectrum portfolio while enhancing customers’ 5G wireless and home internet experience in even more markets,” said AT&T CEO John Stankey.