Semafor reported that Elon Musk’s Starlink and T-Mobile have separately shown interest in buying some or all of the spectrum controlled by EchoStar.
EchoStar’s stock (SATS) gained nearly 2% in premarket trading on Wednesday after rising over 70% in the previous session following its $23 billion deal to sell spectrum to AT&T.
Retail sentiment on Stocktwits about EchoStar jumped to ‘extremely bullish’ on Tuesday from ‘neutral’, with chatter rising an astonishing 46,300%.
AT&T said it will acquire EchoStar’s spectrum licenses, which will provide it with exclusive rights to a slice of the radio-frequency spectrum in specific areas. The company had added that the deal will boost its efforts to “maintain long-term leadership in advanced connectivity across 5G and fiber.”
Later on Tuesday, Semafor reported, citing sources, that Elon Musk’s Starlink and T-Mobile have separately shown interest in buying some or all of the spectrum controlled by EchoStar.
T-Mobile initially wanted to acquire nearly all of the frequencies under EchoStar’s control and is still in discussions to purchase the remaining pieces that AT&T didn’t acquire, according to the Semafor report, which cited people familiar with the matter.
The company reportedly envisioned a three-way deal at one point that would have seen it and AT&T split most of EchoStar’s spectrum. The agreement would have seen a swap of spectrum holdings between the two wireless giants, who are developing their networks on separate wavelengths.
Musk’s bid is for a portion of EchoStar’s spectrum, but according to the report, it was unclear whether the talks are still ongoing.
Starlink has been rapidly expanding its global operations, deploying thousands of satellites to serve over six million customers. However, according to the Semafor report, Starlink also intends to build its own network to provide cell coverage, thereby reducing the dominance of traditional players, such as AT&T, Verizon, and T-Mobile.
Some users expected a bidding war for the remaining spectrum.
In May, the Federal Communications Commission launched an investigation into EchoStar’s compliance with its obligations for 5G service in the U.S. The FCC specifically scrutinized EchoStar’s request for a buildout extension and its mobile-satellite service.
EchoStar stock has more than doubled this year.
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