EchoStar sells spectrum licenses to SpaceX for $17 billion while buying into Starlink
EchoStar today announced it has sold two of its spectrum licenses to SpaceX for $17 billion, in a deal that will also allow EchoStar’s customers to access Starlink.
EchoStar has entered into a definitive agreement with SpaceX to sell the company’s AWS-4 and H-block spectrum licenses for approximately $17 billion, consisting of up to $8.5 billion in cash and up to $8.5 billion in SpaceX stock valued as of the entry into the definitive agreement. Additionally, the definitive agreement provides for SpaceX to fund an aggregate of approximately $2 billion of cash interest payments payable on EchoStar debt through November of 2027.
In connection with the transaction, SpaceX and EchoStar will enter into a long-term commercial agreement, which will enable EchoStar’s Boost Mobile subscribers – through its cloud-native 5G core – to access SpaceX’s next generation Starlink Direct to Cell service.
Essentially, in exchange for the spectrum EchoStar is investing in SpaceX.
EchoStar also today canceled a contract it had signed in early August with the satellite company MDA to build its own 100 satellite constellation designed to provide direct-to-cellphone service, competing with Starlink and AST SpaceMobile. EchoStar will no longer build a rival constellation.
Wall Street apparently liked this deal, as EchoStar’s stock value quickly rose about 19%. It also appears the deal resolves questions the FCC had raised about EchoStar recent activities.
On Christmas Eve 1968 three Americans became the first humans to visit another world. What they did to celebrate was unexpected and profound, and will be remembered throughout all human history. Genesis: the Story of Apollo 8, Robert Zimmerman's classic history of humanity's first journey to another world, tells that story, and it is now available as both an ebook and an audiobook, both with a foreword by Valerie Anders and a new introduction by Robert Zimmerman.
The print edition can be purchased at Amazon or from any other book seller. If you want an autographed copy the price is $60 for the hardback and $45 for the paperback, plus $8 shipping for each. Go here for purchasing details. The ebook is available everywhere for $5.99 (before discount) at amazon, or direct from my ebook publisher, ebookit. If you buy it from ebookit you don't support the big tech companies and the author gets a bigger cut much sooner.
The audiobook is also available at all these vendors, and is also free with a 30-day trial membership to Audible.
"Not simply about one mission, [Genesis] is also the history of America's quest for the moon... Zimmerman has done a masterful job of tying disparate events together into a solid account of one of America's greatest human triumphs."--San Antonio Express-News
EchoStar today announced it has sold two of its spectrum licenses to SpaceX for $17 billion, in a deal that will also allow EchoStar’s customers to access Starlink.
EchoStar has entered into a definitive agreement with SpaceX to sell the company’s AWS-4 and H-block spectrum licenses for approximately $17 billion, consisting of up to $8.5 billion in cash and up to $8.5 billion in SpaceX stock valued as of the entry into the definitive agreement. Additionally, the definitive agreement provides for SpaceX to fund an aggregate of approximately $2 billion of cash interest payments payable on EchoStar debt through November of 2027.
In connection with the transaction, SpaceX and EchoStar will enter into a long-term commercial agreement, which will enable EchoStar’s Boost Mobile subscribers – through its cloud-native 5G core – to access SpaceX’s next generation Starlink Direct to Cell service.
Essentially, in exchange for the spectrum EchoStar is investing in SpaceX.
EchoStar also today canceled a contract it had signed in early August with the satellite company MDA to build its own 100 satellite constellation designed to provide direct-to-cellphone service, competing with Starlink and AST SpaceMobile. EchoStar will no longer build a rival constellation.
Wall Street apparently liked this deal, as EchoStar’s stock value quickly rose about 19%. It also appears the deal resolves questions the FCC had raised about EchoStar recent activities.
On Christmas Eve 1968 three Americans became the first humans to visit another world. What they did to celebrate was unexpected and profound, and will be remembered throughout all human history. Genesis: the Story of Apollo 8, Robert Zimmerman's classic history of humanity's first journey to another world, tells that story, and it is now available as both an ebook and an audiobook, both with a foreword by Valerie Anders and a new introduction by Robert Zimmerman.
The print edition can be purchased at Amazon or from any other book seller. If you want an autographed copy the price is $60 for the hardback and $45 for the paperback, plus $8 shipping for each. Go here for purchasing details. The ebook is available everywhere for $5.99 (before discount) at amazon, or direct from my ebook publisher, ebookit. If you buy it from ebookit you don't support the big tech companies and the author gets a bigger cut much sooner.
The audiobook is also available at all these vendors, and is also free with a 30-day trial membership to Audible.
"Not simply about one mission, [Genesis] is also the history of America's quest for the moon... Zimmerman has done a masterful job of tying disparate events together into a solid account of one of America's greatest human triumphs."--San Antonio Express-News
How will use of these spectrum licenses help Starlink?
A brutal, unsparing analysis by TMF Associates on what SpaceX is up to with this move:
“But ROI has never been the primary determinant of SpaceX’s decisions, when the opportunity presents itself to dominate an industry and force competitors out. That’s why we are seeing aggressive actions from Starlink in the satellite broadband market, lowering prices for hardware and service in both the consumer and professional markets to make Amazon Kuiper’s entry harder (including a new unlimited maritime plan for merchant vessels at only $2500 per month, which will also undermine Viasat’s NexusWave).
“And in this case, by spending $17B, SpaceX has not only persuaded EchoStar to give up its D2D plans but has now made it much harder for any competitor to move forward when they can’t possibly compete with SpaceX’s speed in bringing new satellites to market.”
https://tmfassociates.com/blog/2025/09/08/spacex-disrupts-everyones-plans-again/
I don’t think this will kill Kuiper, which has the resources to overcome any number of obstacles and eat vast amounts of losses. But I think they’re right to some degree that this will make Kuiper’s job harder.
Of course, it takes two to tango. I guess dancing is brutal. (It certainly is for me!)
Amazing that we are talking about 50MHz of bandwidth here, With the precision of phased array antennas and code domain multiplexing and probably things even more subtle than that. BTW, if a satellite can handle part of your cell phone data/call at your request then it can probably see a heck of a lot all of the time when it wants to see it.