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SpaceX to Buy EchoStar Spectrum for $17 Billion to Enable Starlink Direct-to-Cell

Regulatory approval is pending, alongside a pact to serve EchoStar users via Starlink Direct-to-Cell.

Overview

  • The consideration includes up to $8.5 billion in cash, $8.5 billion in SpaceX stock, and about $2 billion in assumed interest payments due through November 2027.
  • The licenses cover 2 GHz mobile bands: AWS-4 (2000–2020 MHz and 2180–2200 MHz) and H-Block/AWS-2 (1915–1920 MHz and 1995–2000 MHz).
  • Owning these frequencies would let Starlink operate Direct-to-Cell service without carrier partners, enabling standard smartphones to connect directly to its satellites.
  • SpaceX and EchoStar also reached a commercial cooperation agreement to provide EchoStar customers access to Starlink’s Direct-to-Cell connectivity.
  • The companies say the deal, which still requires regulatory clearance, aligns with efforts to resolve FCC scrutiny of EchoStar’s underused spectrum following its earlier sale of other licenses to AT&T.