EchoStar has agreed to sell the company's AWS-4 and H-block spectrum licenses to SpaceX in a transaction worth $17 billion.

The [1]deal , which consists of $8.5 billion in cash and $8.5 billion in SpaceX stock, will grant SpaceX 50 MHz of exclusive S-band spectrum in the US, as well as global Mobile Satellite Service licenses.

"This agreement will enable us to develop and deploy our next generation Starlink Direct to Cell constellation, which will be capable of providing broadband service to cell phones globally," SpaceX [2]said .

[3]

Musk's rocketeers currently have more than 600 Starlink Direct to Cell satellites in orbit, and the next generation of spacecraft will, according to the biz, be designed to make full use of the spectrum. SpaceX has suggested figures such as 20 times the throughput of a first-generation satellite and a 100-fold capacity increase.

[4]

[5]

"We're so pleased to be doing this transaction with EchoStar as it will advance our mission to end mobile dead zones around the world," SpaceX president Gwynne Shotwell said in a statement. The additional spectrum also gives SpaceX more flexibility in its operations.

The sale will allow EchoStar's Boost Mobile subscribers to access SpaceX's next-generation Starlink Direct to Cell service.

[6]

EchoStar's stock price has climbed since it [7]sold a chunk of spectrum to AT&T in August for $23 billion. The company anticipates the latest arrangement will put to rest [8]concerns from the US Federal Communications Commission (FCC) that EchoStar was sitting on unused spectrum.

"For the past decade, we've acquired spectrum and facilitated worldwide 5G spectrum standards and devices, all with the foresight that direct-to-cell connectivity via satellite would change the way the world communicates," said Hamid Akhavan, EchoStar president and CEO.

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[12]SpaceX prepares itself for a tenth Starship flight test

The move appears to bring an end to EchoStar's plans for its own satellite constellation. At the same time as trumpeting the SpaceX transaction, which also provides for SpaceX to fund an aggregate of approximately $2 billion of cash interest payments payable on EchoStar debt through November 2027, EchoStar abruptly [13]terminated a contract with MDA Space for 100 satellites.

The MDA Space contract, which had an option for 200 satellites, was [14]announced on August 1 with an initial value of $1.3 billion.

MDA Space said: "The contract termination is the result of a sudden change to EchoStar's business strategy and plan in the wake of spectrum allocation discussions with the Federal Communications Commission (FCC) in the United States. EchoStar has agreed to sell its AWS-4 and H-block spectrum licenses to SpaceX."

[15]

The agreement with SpaceX still requires regulatory approval. EchoStar said: "Current operations of EchoStar's DISH TV, Sling and Hughes will not be impacted by this transaction." ®

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[1] https://ir.echostar.com/news-releases/news-release-details/echostar-announces-spectrum-sale-and-commercial-agreement-spacex

[2] https://www.spacex.com/updates#dtc-gen2-spectrum

[3] https://pubads.g.doubleclick.net/gampad/jump?co=1&iu=/6978/reg_onprem/networks&sz=300x50%7C300x100%7C300x250%7C300x251%7C300x252%7C300x600%7C300x601&tile=2&c=2aMBPFQwV9xTAIU8KkPM6DQAAAMs&t=ct%3Dns%26unitnum%3D2%26raptor%3Dcondor%26pos%3Dtop%26test%3D0

[4] https://pubads.g.doubleclick.net/gampad/jump?co=1&iu=/6978/reg_onprem/networks&sz=300x50%7C300x100%7C300x250%7C300x251%7C300x252%7C300x600%7C300x601&tile=4&c=44aMBPFQwV9xTAIU8KkPM6DQAAAMs&t=ct%3Dns%26unitnum%3D4%26raptor%3Dfalcon%26pos%3Dmid%26test%3D0

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[6] https://pubads.g.doubleclick.net/gampad/jump?co=1&iu=/6978/reg_onprem/networks&sz=300x50%7C300x100%7C300x250%7C300x251%7C300x252%7C300x600%7C300x601&tile=4&c=44aMBPFQwV9xTAIU8KkPM6DQAAAMs&t=ct%3Dns%26unitnum%3D4%26raptor%3Dfalcon%26pos%3Dmid%26test%3D0

[7] https://www.theregister.com/2025/08/27/echostar_sells_off_spectrum/

[8] https://ir.echostar.com/static-files/31f3efd9-c8a8-46c9-926e-634502de1e04

[9] https://www.theregister.com/2025/09/04/amazon_kuiper_speed_jetblue/

[10] https://www.theregister.com/2025/08/27/spacex_starship_flight_10/

[11] https://www.theregister.com/2025/08/22/tesla_bid_to_become_a/

[12] https://www.theregister.com/2025/08/18/spacex_starship_10_test/

[13] https://mda.space/article/mda-space-provides-update-on-echostar-contract

[14] https://mda-en.investorroom.com/2025-08-01-MDA-SPACE-SELECTED-BY-ECHOSTAR-FOR-WORLDS-FIRST-OPEN-RAN-D2D-LEO-CONSTELLATION

[15] https://pubads.g.doubleclick.net/gampad/jump?co=1&iu=/6978/reg_onprem/networks&sz=300x50%7C300x100%7C300x250%7C300x251%7C300x252%7C300x600%7C300x601&tile=3&c=33aMBPFQwV9xTAIU8KkPM6DQAAAMs&t=ct%3Dns%26unitnum%3D3%26raptor%3Deagle%26pos%3Dmid%26test%3D0

[16] https://whitepapers.theregister.com/