EchoStar has entered into a definitive agreement with SpaceX to sell AWS-4 and H-block spectrum licenses for approximately $17 billion.
SpaceX will develop and deploy a next-generation Starlink direct-to-cell constellation using the acquired spectrum licenses.
The transaction includes cash, SpaceX stock, and funding of cash interest payments on EchoStar debt through November 2027.
Spectrum Sale Details
Sale includes $8.5 billion cash, $8.5 billion in SpaceX stock, and $2 billion in funding of cash interest payments.
Long-Term Commercial Agreement
EchoStar and SpaceX will collaborate to provide Boost Mobile subscribers access to SpaceX's Starlink Direct to Cell service through a cloud-native 5G core.
Vision for Connectivity
The agreement aims to enhance direct-to-cell connectivity via satellite, revolutionizing global communication standards.
- The sale and agreement with SpaceX will potentially resolve FCC inquiries related to spectrum holdings.
- Proceeds will be used to retire debt and fund growth initiatives, ensuring sustained operations and continued innovation.
EchoStar's strategic partnership with SpaceX marks a significant step towards enhancing global connectivity through innovative satellite technologies.