SpaceX has reached an agreement to purchase wireless spectrum from EchoStar Corp. in a transaction valued at approximately $17 billion. The acquisition positions SpaceX to significantly enhance its Starlink satellite internet service and push forward its direct-to-cell connectivity ambitions.
Under the terms of the agreement announced on Monday, SpaceX will acquire EchoStar’s AWS-4 and H-block spectrum licenses, which are designated for both satellite and mobile communications. The payment structure includes up to $8.5 billion in cash and up to $8.5 billion in SpaceX stock, alongside commitments to cover roughly $2 billion in EchoStar debt interest payments through late 2027.
In addition, the companies will enter a long-term commercial partnership enabling EchoStar’s Boost Mobile customers to access the next generation of Starlink Direct-to-Cell services.
For SpaceX, the acquisition represents a major leap in independence and capability. Until now, satellite operators seeking Direct-to-Cell service typically relied on partnerships with terrestrial wireless carriers. SpaceX already collaborates with Rogers in Canada, T-Mobile in the United States, and many others around the world, but owning its own spectrum will allow the company to roll out services more quickly and on its own terms.
“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,” said Gwynne Shotwell, president & COO, SpaceX.
The exclusive spectrum will enable SpaceX to design and launch a new generation of Starlink satellites with improved performance, building on a network that already connects over 7 million customers in more than 150 countries.
Pending regulatory approvals, the deal is expected to close in the coming months.
