What are spectrum licences and why are they important for 5G?

Spectrum licences give telecommunications companies the legal right to use specific radio frequencies for their wireless networks. Think of spectrum as invisible highways in the air that carry data. For 5G networks, having more spectrum means faster speeds, better coverage, and the ability to handle more users simultaneously. AT&T's acquisition gives them access to valuable low-band and mid-band frequencies that are particularly effective for 5G coverage.

How does AT&T's acquisition affect other telecom companies?

AT&T's $23 billion spectrum purchase significantly strengthens their 5G network capabilities, putting competitive pressure on rivals like Verizon and T-Mobile. These competitors may need to increase their own infrastructure spending, acquire spectrum, or find other ways to match AT&T's enhanced network capacity. This competitive dynamic often leads to increased capital expenditure across the entire industry.

What does 'infrastructure companies' mean in telecommunications?

Infrastructure companies provide the essential building blocks that make wireless networks possible. This includes cell tower operators who own the physical towers, fiber optic companies that provide the high-speed connections between towers, and equipment manufacturers who make the specialised hardware needed for 5G networks. When telecom companies expand their networks, these infrastructure providers typically see increased demand for their services.

What is a 'capital expenditure cycle' in telecommunications?

A capital expenditure (capex) cycle refers to periods when telecommunications companies significantly increase their spending on network infrastructure, equipment, and technology upgrades. These cycles are often triggered by competitive pressures, new technology rollouts like 5G, or major industry events like AT&T's spectrum acquisition. During these cycles, companies that supply telecom infrastructure typically see increased revenue and growth opportunities.

Why might this deal face regulatory scrutiny?

Large telecommunications acquisitions often attract regulatory attention because spectrum is a limited public resource, and regulators want to ensure fair competition in the wireless market. The $23 billion scale of this deal and its potential impact on market competition means regulators will likely review whether it serves the public interest and doesn't create unfair advantages that could harm consumers or smaller competitors.

15 handpicked stocks

The 5G Spectrum Shake-Up

AT&T's $23 billion acquisition of EchoStar's spectrum licenses is set to significantly boost its 5G network capabilities. This major industry move creates a ripple effect, potentially benefiting companies involved in telecommunications infrastructure as competitors race to keep up.

Han Tan | Market Analyst

Published on August 27

Top Picks from This Group

Here are a few of the assets in this group. Create an account to unlock the full list.

AT&T, Inc.

Current price

$25.87

AT&T is the primary beneficiary of this $23 billion spectrum acquisition, significantly enhancing its 5G network capacity and competitive position.

Verizon Communications Inc.

Current price

$39.85

Verizon faces increased competitive pressure from AT&T's expanded spectrum holdings and may need to accelerate its own infrastructure investments.

T-Mobile US, Inc.

TMUS

Current price

$228.79

T-Mobile must respond to AT&T's enhanced 5G capabilities, potentially driving increased capital expenditure on network upgrades.

Crown Castle Inc

CCI

Current price

$97.58

EchoStar Corp.

SATS

Current price

$74.00

CommScope Holding Company, Inc.

COMM

Current price

$14.95

Join Nemo FREE today and unlock every stock

It only takes 60 seconds.

12 Month Growth Potential

Use the growth calculator to see how much investing in these assets could return over one year, based on aggregated analyst sentiment provided by Refinitive Ltd.

If you invested across these assets:

≈

In 12 months it might be worth:

$1,000.00

+4.21%

≈

About This Group of Stocks

Our Expert Thinking

AT&T's massive $23 billion acquisition of EchoStar's spectrum licences creates a domino effect across the telecommunications industry. This strategic move forces competitors to accelerate their own infrastructure investments, creating opportunities throughout the 5G supply chain from major carriers to essential equipment suppliers.

What You Need to Know

This group captures both the major telecommunications players directly involved in the competitive response and the critical infrastructure companies that supply the backbone of 5G networks. The theme represents a tactical play on increased capital expenditure cycles triggered by this industry catalyst.

Why These Stocks

These stocks were handpicked by professional analysts to capture the ripple effects of AT&T's strategic acquisition. The selection includes major carriers under competitive pressure and upstream suppliers like cell tower operators and network equipment manufacturers positioned to benefit from increased demand.

Group Performance Snapshot

4.21%

Average 12 Month Profit

On average, analysts expect assets in this group to grow 4.21% over the next year.

10 of 14

Stocks Rated Buy by Analysts

10 of 14 assets in this group are rated Buy by professional analysts.

Source: Analyst sentiment is provided by Refinitiv Ltd, a global leader in financial market data with over 40k business clients. Refinitiv Ltd is an independent third party to Nemo. This is not advice.

Why You'll Want to Watch These Stocks

⚡

Industry Catalyst in Motion

AT&T's $23 billion deal is already forcing competitors to respond, creating a wave of infrastructure investment that could benefit multiple companies in this space.

🏗️

Infrastructure Boom Ahead

The competitive pressure from this acquisition means increased spending on cell towers, fiber networks, and 5G equipment across the entire industry.

🎯

Strategic Positioning Play

These stocks are positioned at different points in the 5G supply chain, from major carriers to essential infrastructure providers, capturing multiple angles of this industry shift.

Get the full story on this Basket. Read our detailed article on its risks and potential.

Read Full Insight

Why Invest with Nemo Money?

🆓

Zero Commission

Trade stocks, ETFs, and more with zero commission. Keep more of your returns.

🔒

Trusted & Regulated

Part of Exinity Group 2015, serving over a million customers globally.

💰

6% Interest on Cash

Earn 6% AER on uninvested cash with daily interest payments.

Discover More Opportunities

Wireless Patent Stocks May Benefit in 2025

A significant jury verdict against Samsung for patent infringement highlights the immense value of wireless technology patents. This creates a potential investment opportunity in companies that own and license key intellectual property for 4G, 5G, and Wi-Fi communications.

Pharmaceutical Policy Shift Explained | Pricing Models

The Trump administration's recent drug pricing agreements with major pharmaceutical companies like AstraZeneca and Pfizer aim to lower U.S. drug costs by tying them to international prices. This creates a potential investment opportunity in pharmaceutical firms with strong domestic production and those in the healthcare supply chain that can adapt to the new pricing landscape.

Aviation Stocks: Spirit Crisis Creates Mixed Outlook

Spirit Airlines has secured court approval for crucial bankruptcy financing, signaling a major shake-up in the budget airline market. This development creates a potential opening for rival carriers to absorb market share and for aircraft lessors to renegotiate terms across the industry.

Frequently Asked Questions

Everything you need to know about the product and billing.