Ergen’s Spectrum Windfall: How a $23 Billion AT&T Deal Resurrected a Telecom Titan
In the high-stakes world of telecommunications, where spectrum is the lifeblood of innovation and connectivity, Charles Ergen’s story is one of the most dramatic about boom and bust. Ergen is the co-founder and chairman of EchoStar Corporation. He has been a maverick in the satellite and wireless industries for a long time. But by September 2025, things had changed dramatically for him. Forbes estimates that his net worth has risen to $11 billion. This amazing turnaround is mostly due to EchoStar’s huge $23 billion deal to sell valuable spectrum licenses to AT&T. This deal not only improved the company’s finances, but it also eased regulatory pressures that had put its very existence at risk.
Ergen’s path to this important moment has not been easy at all. Ergen was born in 1953 in Oak Ridge, Tennessee. His father was a nuclear physicist from Austria. Ergen grew up in a family that was very strict about science. Before starting his own business, he got a bachelor’s degree from the University of Tennessee and an MBA from Wake Forest University. In the early 1980s, Ergen, his wife Cantey McAdam, and his coworker John DePaolis started EchoStar in the back of a camper in Colorado. What started as a small business bringing in satellite dishes from Asia grew into a major player in direct broadcast satellite (DBS) television.
EchoStar got $335 million through junk bonds to get orbital slots for satellites by 1990. Two years later, it got a key DBS license from the Federal Communications Commission (FCC). In 1996, the company started the Dish Network brand, which quickly grew to compete with big cable companies like Comcast and Time Warner. Ergen’s aggressive strategies, such as making affordable set-top boxes, introducing digital video recorders, and providing two-way high-speed internet, helped Dish reach a peak of over 14 million subscribers. In 2000, his net worth reached $11.2 billion, making him one of the richest people in the world according to Forbes.
But Ergen wanted more than just satellite TV. Since 2008, he had been aggressively acquiring wireless spectrum licenses, which could have made EchoStar and Dish competitors in the mobile market. This plan became more important in 2019 when the FCC approved the T-Mobile-Sprint merger on the condition that a new fourth national wireless carrier be created to keep AT&T, Verizon, and the merged company from becoming an oligopoly. Ergen’s purchase of Boost Mobile in 2020 was a great fit for the divestiture remedies. He imagined a nationwide 5G network based on open radio access network (Open RAN) technology, which would be cheaper and more flexible.
But carrying it out was hard. The COVID-19 pandemic, problems with the supply chain, and rising debt—made worse by the 2023 merger of Dish and EchoStar—nearly brought the company to its knees. By the end of 2023, Ergen’s personal wealth had dropped from billions to less than $1 billion, making him no longer a billionaire for the first time in almost 25 years. EchoStar didn’t pay the interest on its loans, and bankruptcy was on the way. In May 2025, the FCC started looking into whether EchoStar was meeting its deadlines for building out 5G, especially for bands that weren’t being used much, like 2 GHz/AWS-4. Elon Musk’s SpaceX complained that EchoStar was hoarding spectrum that could be used for satellite services, which made things worse.
Here comes President Donald Trump. In June 2025, Ergen met with Trump and Brendan Carr, the head of the FCC. Bloomberg said that this meeting changed the tone of the regulations from strict to open to negotiation. Trump pushed for a “deal” to end the standoff, which led to what would become EchoStar’s lifeline. On August 26, 2025, EchoStar said it had reached a final deal to sell its 600 MHz low-band and 3.45 GHz mid-band spectrum licenses to AT&T for about $23 billion in cash. This would give AT&T coverage in over 400 markets across the country. The deal is still subject to changes and regulatory approval, which is expected in mid-2026.
The details of the deal are a telecom fan’s dream. The 600 MHz licenses are better for wide-area coverage, which is great for rural and indoor use. The 3.45 GHz mid-band spectrum has the bandwidth needed for fast 5G apps. This purchase “supercharges” AT&T’s converged connectivity strategy, improving 5G and fiber services without affecting its 2025 financial guidance. John Stankey, the CEO of AT&T, said that the licenses fit perfectly with the company’s current infrastructure, which makes it easy to roll out quickly.
The companies also added to their network services agreement, making EchoStar a “hybrid mobile network operator” (MNO). Boost Mobile will use AT&T’s network as its main partner, which will keep service going for its customers while shutting down parts of EchoStar’s new Open RAN buildout. The announcement was a stroke of genius for Ergen. EchoStar’s stock price jumped 70% to $50.87 on the day of the announcement, showing that investors were happy about the extra cash. The money will pay off debts, keep the business running, and look into new uses for EchoStar’s remaining spectrum portfolio.
Ergen, who had been a professional poker player before starting his own business, said that the move met FCC goals and answered questions. He said, “This sale of spectrum to AT&T and the hybrid MNO agreement are important steps toward addressing the FCC’s concerns about how spectrum is being used.” Hamid Akhavan, CEO of EchoStar, said the same thing, saying it “puts our business on a solid financial path.” The rise in net worth is directly related to Ergen’s large stake in the company. He owns about 48% of EchoStar shares and 46% of the voting power. His family trusts and other businesses give him even more power.
Before the deal, EchoStar’s market cap was around $5 billion, but the company was having trouble with money. The $23 billion investment, along with rising stock prices, has more than doubled the company’s value. By September 2025, Ergen’s wealth will have grown from less than a billion dollars to $11 billion. Forbes says this is because the deal confirmed Ergen’s long-term strategy of buying low at auctions, holding on through rough times, and selling high when the time is right.
But critics see some controversy in it. The deal strengthens the “big three” wireless carriers, killing any hopes of a real fourth competitor that could lower prices and encourage new ideas. Some analysts say that the FCC’s change of heart after Trump’s intervention favors incumbents over competition. SpaceX’s earlier complaints showed how Ergen’s holdings were holding back satellite progress. An Ars Technica article said it was a move that “cements AT&T’s dominance,” which could limit consumer choice in a market that is already full. Also, EchoStar’s decision to give up on its Open RAN 5G vision, which was once seen as a breakthrough despite the pandemic, makes people wonder if these kinds of technologies can work without a lot of people using them. There are bigger effects that affect the whole industry.
The $23 billion AT&T spent, which was paid for with cash and loans, shows that the company is still focused on spectrum depth as data needs from AI, streaming, and the Internet of Things continue to grow. In May 2025, AT&T bought Lumen’s fiber assets for $5.75 billion, and in July, it sold its stake in DirecTV to TPG. But as wireless markets mature, the deal shows that companies are moving toward consolidation instead of growth. EchoStar can now focus on its core strengths: Dish, which still has over 7 million subscribers, Sling TV, which streams live TV, and Hughes, which provides satellite broadband. The company is already looking to make more sales, as shown by a $17 billion deal in September 2025 to sell more spectrum to SpaceX for Starlink’s direct-to-cell plans.
Ergen’s comeback shows how strong he is. His story shows how unstable the telecom industry is: he went from almost going bankrupt to becoming a billionaire in less than two years. As he works through regulatory approvals and integration problems, Ergen is still a key player—part visionary, part opportunist. In a time when there isn’t enough spectrum to go around, this deal not only protects his legacy but also changes the way Americans connect with each other. There will be a lot of debate about whether this is good for consumers or bad for monopolies for years to come, but for now, Ergen is back at the table with a winning hand.