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EchoStar Sells AWS-3 Spectrum to SpaceX for $2.6 Billion in Stock

Payment in SpaceX equity positions EchoStar to manage a new stake through its newly formed EchoStar Capital unit.

Overview

  • The amended agreement transfers 15 MHz of nationwide, unpaired AWS-3 uplink licenses in the 1695–1710 MHz range (3GPP Band 70n) to SpaceX.
  • SpaceX plans to pair the AWS-3 airwaves with previously agreed AWS-4 and H‑block licenses to expand Starlink’s Direct to Cell satellite network.
  • The deal builds on a roughly $17 billion September transaction between the companies and remains subject to regulatory approvals and customary closing conditions.
  • EchoStar created EchoStar Capital to hold and invest its SpaceX stake, appointing Hamid Akhavan as CEO of the unit while Charlie Ergen assumes operational leadership of the pay‑TV and wireless businesses.
  • Starlink says more than 8 million people have used its Direct to Cell service since activation earlier this year, and EchoStar says DISH TV, Sling TV, Boost Mobile and Hughes operations are unaffected by the sale.