EchoStar has announced an agreement with SpaceX to sell its AWS-4 and H-block spectrum licenses in a transaction valued at $17 billion. The deal includes up to $8.5 billion in cash and up to $8.5 billion in SpaceX stock. Additionally, SpaceX will fund around $2 billion in cash interest payments on EchoStar’s debt obligations through November 2027.
Strengthening Starlink’s Direct-to-Cell Service
As part of the agreement, EchoStar and SpaceX will enter into a long-term commercial partnership. This will enable Boost Mobile subscribers, supported by EchoStar’s cloud-native 5G core, to access SpaceX’s next-generation Starlink Direct to Cell service.
Hamid Akhavan, CEO of EchoStar, said the company’s decade-long investment in spectrum and 5G standards was driven by the belief that satellite-based direct-to-cell connectivity would transform communications, and the deal with SpaceX will make that vision a reality more efficiently and at scale.
EchoStar highlighted that the deal combines its spectrum assets with SpaceX’s rocket launch and satellite technology, accelerating the expansion of global mobile connectivity.
SpaceX Expands Mission to End Mobile Dead Zones
Gwynne Shotwell, COO of SpaceX, said the deal supports Starlink’s mission to eliminate mobile dead zones by enabling the development of next-generation Direct to Cell satellites that will deliver significantly better performance and broader coverage worldwide.
Starlink’s Direct to Cell capability has already been used in emergency scenarios such as natural disasters, providing critical connectivity when traditional mobile networks were unavailable. The expanded spectrum access will allow SpaceX to improve performance and broaden global coverage.
Regulatory Path and Business Impact
The transaction is subject to regulatory approvals, including clearance from the Federal Communications Commission (FCC). EchoStar expects that the deal, combined with its previously announced spectrum sale, will resolve ongoing FCC inquiries.
The proceeds will be used to retire debt obligations and support EchoStar’s operational growth initiatives. Importantly, the company confirmed that current operations of DISH TV, Sling, and Hughes will not be affected by the agreement.
Earlier, EchoStar agreed to sell its 3.45 GHz and 600 MHz spectrum licenses, totaling 50 MHz nationwide, to AT&T for $23 billion. The companies also amended their network services agreement to establish a hybrid mobile network operator (MNO) model.
The deal will allow AT&T to rapidly deploy the spectrum for U.S. consumers, while Boost Mobile subscribers continue to access AT&T’s nationwide network through EchoStar’s cloud-native 5G core, with additional connectivity from T-Mobile. Boost Mobile’s own RAN infrastructure will be gradually decommissioned.
EchoStar said the transaction will help resolve FCC spectrum utilization concerns, retire debt, and fund ongoing operations and growth. CEO Hamid Akhavan emphasized the company’s long-term strategy, while chairman Charlie Ergen highlighted EchoStar’s success in deploying the world’s first Open RAN network.
Baburajan Kizhakedath