Charlie Ergens telecom giant EchoStar unveiled a definitive agreement with ATT 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 ofEchoStars ongoing efforts to resolve theFederal Communications Commissions inquiries. FCC chairman Brendan Carr, in a May letter, had outlined concerns about EchoStars 5G network buildout obligations and the use of some spectrum licenses following complaints from Elon Musks SpaceXthat EchoStar wasnt using 2 GHz/AWS-4 spectrum and should therefore let it and other satellite firms put it to use.

The spectrum deal will also strengthen EchoStars balance sheet. Its Dish DBS subsidiary last month made scheduled interest payments with a delay, avoiding default.

Said EchoStar co-founder and chairman Ergen: This arrangement benefits both ATT and Boost Mobile subscribers. Im enormously proud of theEchoStarteam for deploying the worlds 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: EchoStarand Boost Mobile have met all of theFCCsnetwork buildout milestones. However, this spectrum sale to ATT and hybrid MNO agreement are critical steps toward resolving theFCCsspectrum utilization concerns.

Added Hamid Akhavan, CEO and president ofEchoStar: This transaction puts our business on a solid financial path, further facilitatingEchoStarslong-term success, and enhancing our ability toinnovate and compete as a hybrid network operator. The proceeds of this transaction will be used for, among other things, retiring certain debt obligations and fundingEchoStarscontinued operations and growth initiatives.

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

The operations ofEchoStars other businesses, including Dish TV, Sling and Hughes, will not be impacted by this transaction, the company highlighted.

ATT 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 ATT CEOJohn Stankey.