Catenaa, Monday, September 08, 2025- Elon Musk’s SpaceX has reached a deal worth about $17 billion with EchoStar for spectrum licenses that it will use to beef up its Starlink satellite network.
The deal for EchoStar’s AWS-4 and H-block spectrum licenses includes up to $8.5 billion in cash and up to $8.5 billion in SpaceX stock.
SpaceX will make approximately $2 billion in cash interest payments on EchoStar debt through November 2027.
SpaceX and EchoStar will enter into a long-term commercial agreement, which will allow EchoStar’s Boost Mobile subscribers to access SpaceX’s next-generation Starlink Direct to Cell service.
SpaceX has launched more than 8,000 Starlink satellites since 2020, building a distributed network in low-Earth orbit that has seen demand from militaries, transportation firms, and consumers in rural areas.
Shares of EchoStar surged more than 22% on Monday morning.
US President Donald Trump had also prodded EchoStar and FCC Chair Brendan Carr to reach an amicable deal for the company’s wireless spectrum licenses.
Last month, AT&T said that it would spend $23 billion to acquire wireless spectrum licenses from EchoStar, a significant expansion of its low- and mid-band coverage networks.
EchoStar said that it anticipates that the AT&T deal and the SpaceX transaction will resolve recent inquiries from the Federal Communications Commission about the rollout of 5G technology in the US.
EchoStar said Monday that it will use the proceeds from the sale partly to pay down debt. Current operations of Dish TV, Sling, and Hughes will not be impacted, the company said.
