EchoStar Sells Spectrum to SpaceX in $17 Billion Deal to Advance Global Satellite Connectivity

EchoStar has entered into a definitive agreement with SpaceX to sell the company's AWS-4 and H-block spectrum licenses for approximately $17 billion, consisting of up to $8.5 billion in cash and up to $8.5 billion in SpaceX stock valued as of the entry into the definitive agreement. This transaction represents one of the largest spectrum deals in telecommunications history and signals a major shift in how satellite and terrestrial networks will converge to provide seamless global connectivity.

The agreement includes SpaceX funding approximately $2 billion of cash interest payments payable on EchoStar debt through November of 2027, providing financial stability for EchoStar during the transition period. The long-term commercial agreement between the companies will enable EchoStar's Boost Mobile subscribers to access SpaceX's next generation Starlink Direct to Cell service through its cloud-native 5G core. This integration marks a significant advancement in making satellite connectivity accessible to mainstream mobile users without requiring specialized equipment.

Hamid Akhavan, president and CEO of EchoStar, emphasized that this transaction continues the company's legacy of customer-focused innovation, combining AWS-4 and H-block spectrum from EchoStar with SpaceX's rocket launch and satellite capabilities to realize the direct-to-cell vision more innovatively, economically, and rapidly for consumers worldwide. The partnership leverages EchoStar's decade-long investment in spectrum acquisition and 5G standards development, positioning both companies at the forefront of the emerging satellite-to-cell market.

Gwynne Shotwell, president and COO of SpaceX, highlighted how this transaction advances SpaceX's mission to end mobile dead zones globally. SpaceX's first generation Starlink satellites with Direct to Cell capabilities have already connected millions of people during critical situations such as natural disasters, enabling emergency communications when terrestrial networks fail. The exclusive spectrum access will allow SpaceX to develop next-generation Starlink Direct to Cell satellites with significantly improved performance, enhancing coverage for customers anywhere in the world.

EchoStar anticipates this transaction, along with previously announced spectrum sales, will resolve Federal Communications Commission inquiries regarding spectrum utilization and compliance. The deal requires regulatory approvals before closing, ensuring proper oversight of this major telecommunications infrastructure development. Proceeds from the transaction will be used for retiring certain debt obligations and funding EchoStar's continued operations and growth initiatives, while current operations of DISH TV, Sling, and Hughes services will remain unaffected. This strategic move positions both companies to lead the transformation of global communications infrastructure through satellite-terrestrial integration.