Core Points - The Federal Communications Commission (FCC) has approved AT&T's acquisition of wireless spectrum licenses from U.S. Cellular for $1.02 billion [1] Group 1 - The deal involves AT&T purchasing certain wireless spectrum licenses, which is expected to enhance its network capabilities [1] - The approval comes after AT&T made commitments to improve service in rural areas, indicating a focus on expanding coverage [1] - The transaction is part of AT&T's broader strategy to strengthen its position in the competitive wireless market [1]

Core Insights - AT&T has deployed mid-band spectrum from EchoStar to nearly 23,000 cell sites, covering almost two-thirds of the U.S. population, enhancing network efficiency and customer experience [1][2] - The integration of this spectrum has resulted in an 80% improvement in download speeds for mobility and a 55% increase for AT&T Internet Air [2][6] - The $23 billion deal for spectrum acquisition is expected to close in mid-2026 and will reduce capital investment needs by eliminating the necessity for new cell site construction [2][6] Company Developments - The deployment aligns with AT&T's strategy to enhance its 5G offerings and support demanding applications such as AI and IoT [3] - The enhanced network infrastructure is also facilitating the expansion of AT&T Internet Air, its fixed wireless service [3] - AT&T's stock has gained 11% over the past year, contrasting with an 8.2% decline in the industry [6] Competitor Analysis - T-Mobile covers 98% of the U.S. population with its 5G network, utilizing mid-band 2.5 GHz spectrum for extensive coverage and fast speeds [4] - Verizon holds a significant amount of spectrum, including 1,741 MHz of mmWave spectrum, and is rapidly deploying new C-band equipment to enhance its 5G ultra-wideband service [5] Financial Estimates - The Zacks Consensus Estimate for AT&T's earnings for 2025 has increased over the past 60 days, indicating positive market sentiment [7] - AT&T's forward price-to-sales ratio is 1.45, which is below the industry average of 1.86, suggesting potential undervaluation [9]