US EditionEchoStar sells spectrum licenses to SpaceX in $17 billion deal to resolve FCC probe
SpaceX will invest $17 billion to acquire EchoStar spectrum licenses, enabling Starlink's next-generation satellite service to enhance connectivity and support Boost Mobile users.
- Monday, EchoStar finalized a definitive agreement to sell its full AWS-4 and H-block spectrum licenses to SpaceX for about $17 billion.
- Regulatory pressure and parallel sales include Last month AT&T's $23 billion spectrum purchase from EchoStar Corporation, and EchoStar said the SpaceX deal should resolve Federal Communications Commission inquiries and aid debt repayment.
- The deal structure shows the $17 billion includes up to $8.5 billion in cash, $8.5 billion in SpaceX stock, and SpaceX funding $2 billion in EchoStar debt interest through November 2027, enabling Boost Mobile access to Starlink Direct to Cell.
- Shares of EchoStar surged more than 23% before the market opened Monday as the company said DISH TV, Sling and Hughes operations will remain unaffected and proceeds will retire debt and fund growth.
- If regulators approve, the agreement will let SpaceX develop advanced Starlink Direct to Cell satellites to reduce mobile dead zones and improve global coverage, framing the deal as transformative for combining satellite and terrestrial communications.
178 Articles
178 Articles
SpaceX buys wireless spectrum from EchoStar in $17bn deal
Elon Musk's SpaceX said on Monday it will buy wireless spectrum licences from EchoStar for its Starlink satellite network for about $17bn (R297.35bn), a major deal crucial to expanding Starlink's nascent 5G connectivity business.
Musk’s $19 billion spectrum deal turns heat up on telecom companies
The NewsElon Musk’s Starlink struck a $19 billion deal Monday for EchoStar’s spectrum licenses, edging out T-Mobile and positioning it as a potential competitor to the big three wireless carriers.Shares of T-Mobile, AT&T and Verizon all slipped in Monday trading, reflecting investor concerns over Musk entering the wireless oligopoly. Spectrum is a finite asset and licenses for big blocks, like those Charlie Ergen had been sitting on for years, d…
EchoStar unloads wireless spectrum to Musk’s SpaceX for $17 billion
By Michelle Chapman, AP business writer Elon Musk’s SpaceX has reached a deal worth about $17 billion with EchoStar for spectrum licenses that it will use to beef up its Starlink satellite network. The deal for EchoStar’s AWS-4 and H-block spectrum licenses includes up to $8.5 billion in cash and up to $8.5 billion in SpaceX stock. SpaceX will make approximately $2 billion in cash interest payments on EchoStar debt through November 2027. SpaceX …
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