SpaceX has struck a $17 billion deal to acquire AWS-4 and H-block spectrum licences from EchoStar. The move strengthens SpaceX’s Starlink satellite network. It will pay $8.5 billion in cash and offer another $8.5 billion in SpaceX stock. EchoStar will also receive around $2 billion in interest payments on its debt through late 2027.
This SpaceX EchoStar spectrum deal follows pressure earlier this year for EchoStar to sell the underused assets. The spectrum is key to expanding Starlink’s reach across the U.S., especially in underserved areas.
FCC Pressure Sparks Major Shift
The Federal Communications Commission (FCC) flagged EchoStar’s underuse of its AWS-4 spectrum in May. This triggered renewed negotiations. SpaceX gained momentum when FCC chair Brendan Carr stepped in. After meeting with Elon Musk and President Trump, Carr gave EchoStar’s Charlie Ergen a final offer.
Before this deal, EchoStar faced $26.4 billion in debt. It had already agreed to a $23 billion merger with AT&T. SpaceX’s offer now reshapes the future of its spectrum holdings—and of satellite internet in the U.S.
Starlink and T-Mobile Stand to Gain
According to analyst Roger Entner, Starlink is the big winner. The 40MHz block of AWS-4 spectrum could power a massive, nationwide network. He believes this will solidify T-Mobile’s speed advantage and give it a significant lead over its rivals. Starlink already has an exclusive U.S. partnership with T-Mobile but plans to expand with other providers.
Boost Mobile Taps into Starlink
As part of the deal, SpaceX and EchoStar signed a long-term commercial agreement. EchoStar’s Boost Mobile customers will gain access to Starlink’s direct-to-cell service. This partnership could shift the landscape for mobile broadband.
It also raises questions about EchoStar’s $13 billion deal with MDA Space to build satellites for its D2D network. With SpaceX onboard, those LEO satellites may no longer be necessary.
The agreement is expected to close once it has cleared standard regulatory approvals. This move marks a major leap for SpaceX’s Starlink—and for mobile connectivity across the U.S.
Source: https://www.mobileworldlive.com/spectrum/spacex-snags-echostar-spectrum-for-17b/
