SpaceX Acquires EchoStar Spectrum Licenses in $17bn Deal

SpaceX, owned by billionaire entrepreneur Elon Musk, has struck a $17 billion agreement to acquire wireless spectrum licenses from satellite operator EchoStar, marking one of the largest spectrum deals in recent years.

The transaction, announced Monday, includes $8.5 billion in cash and $8.5 billion in SpaceX stock. In addition, SpaceX will cover about $2 billion in interest payments on EchoStar’s debt through November 2027.

Under the agreement, SpaceX will acquire valuable AWS-4 and H-block spectrum licenses. These airwaves are expected to significantly strengthen Starlink’s direct-to-cell service, boosting its capacity to deliver satellite-based mobile and 5G coverage, particularly in remote and underserved regions.

The deal also establishes a long-term commercial partnership, ensuring that customers of EchoStar’s Boost Mobile network will have access to Starlink’s direct-to-cell service once integration begins.

EchoStar, which has been under regulatory pressure from the Federal Communications Commission (FCC) over underutilized spectrum, is expected to use the proceeds to reduce debt and ease compliance concerns.

The company has already sold spectrum assets worth $23 billion to AT&T last month.

News of the sale sent EchoStar’s shares soaring in pre-market trading, with gains reported between 19% and 36% across exchanges.

Analysts said the deal not only provides financial relief for EchoStar but also positions SpaceX as a stronger player in global  communications.

With this acquisition, SpaceX aims to accelerate its push into satellite-enabled mobile connectivity, a move seen as a game-changer for bridging digital divides and challenging traditiol telecom networks.