EchoStar Corporation announced it has entered into a definitive agreement with SpaceX to sell its AWS-4 and H-block spectrum licenses for approximately $17 billion. The consideration includes up to $8.5 billion in cash and up to $8.5 billion in SpaceX stock, valued as of the signing of the agreement. As part of the transaction, SpaceX will also fund approximately $2 billion in cash interest payments on EchoStar debt through November 2027.
In addition to the spectrum transaction, the two companies will establish a long-term commercial agreement that expands connectivity options for EchoStar’s Boost Mobile subscribers. Through this partnership, Boost Mobile customers – leveraging EchoStar’s cloud-native 5G core – will gain access to SpaceX’s next-generation Starlink Direct to Cell service.
Enabling the Future of Direct-to-Cell Connectivity
“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 & CEO, 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.”
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“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 & COO, SpaceX. “SpaceX’s first generation Starlink satellites with Direct to Cell capabilities have already connected millions of people when they needed it most – during natural disasters so they could contact emergency responders and loved ones – or when they would have previously been off the grid. 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.”
Strengthening Global Connectivity
The agreement underscores the growing importance of satellite-enabled direct-to-cell communications in bridging connectivity gaps worldwide. By combining EchoStar’s licensed spectrum assets with SpaceX’s proven satellite and launch capabilities, the partnership aims to accelerate innovation in mobile communications, expand global reach, and improve service quality for consumers.