Summary points:
- A long-term commercial agreement will allow EchoStar's Boost Mobile subscribers to connect to Starlink Direct to Cell via EchoStar's 5G core.
- EchoStar CEO Hamid Akhavan said the agreement combines spectrum with SpaceX's launch and satellite capabilities to advance direct-to-cell services.
- The transaction, subject to regulatory approval, is expected to resolve FCC inquiries.
ENGLEWOOD, Colo. - EchoStar in Englewood, Colo., has agreed to sell its AWS-4 and H-block spectrum licenses to SpaceX in Hawthorne, Calif., for about $17 billion. The agreement includes up to $8.5 billion in cash, up to $8.5 billion in SpaceX stock, and SpaceX funding approximately $2 billion in EchoStar debt interest payments through November 2027.
As part of the transaction, EchoStar and SpaceX will enter a long-term commercial agreement enabling EchoStar's Boost Mobile subscribers to access SpaceX's Starlink Direct to Cell service through EchoStar's cloud-native 5G core.
"For the past decade, we've acquired spectrum and facilitated worldwide 5G spectrum standards and devices, all with the foresight that direct-to-cell connectivity via satellite would change the way the world communicates," said Hamid Akhavan, president and CEO of EchoStar. "This transaction with SpaceX continues our legacy of putting the customer first as it allows for the combination of AWS-4 and H-block spectrum from EchoStar with the rocket launch and satellite capabilities from SpaceX to realize the direct-to-cell vision in a more innovative, economical and faster way for consumers worldwide."
Related: NASA and SpaceX work to improve coordination of space traffic
"We're so pleased to be doing this transaction with EchoStar as it will advance our mission to end mobile dead zones around the world," said Gwynne Shotwell, president and COO of SpaceX. "In this next chapter, with exclusive spectrum, SpaceX will develop next generation Starlink Direct to Cell satellites, which will have a step change in performance and enable us to enhance coverage for customers wherever they are in the world."
The deal, subject to regulatory approval, is expected to help resolve ongoing FCC inquiries. EchoStar said proceeds will be used to reduce debt and support growth initiatives. Operations of DISH TV, Sling, and Hughes will not be affected.
