SpaceX has struck a landmark deal with EchoStar to acquire its full portfolio of AWS-4 and H-block wireless spectrum licenses for approximately $17 billion. The transaction includes up to $8.5 billion in cash and up to $8.5 billion in SpaceX stock, along with SpaceX covering around $2 billion in interest payments on EchoStar debt through 2027.
As part of the agreement, SpaceX and EchoStar will also enter into a long-term commercial partnership. This deal will allow EchoStar’s Boost Mobile subscribers to connect to SpaceX’s next-generation Starlink Direct to Cell service via EchoStar’s cloud-native 5G core.
“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, President and CEO of EchoStar.
“This transaction with SpaceX continues our legacy of putting the customer first as it allows for the combination of AWS-4 and H-block spectrum from EchoStar with the rocket launch and satellite capabilities from SpaceX to realize the direct-to-cell vision in a more innovative, economical and faster way for consumers worldwide.”
The acquisition could mark a turning point for Starlink. With cellular spectrum in hand, the company may soon be able to offer first-party satellite-based mobile services directly to consumers, instead of — or alongside — its current partnerships with carriers like T-Mobile in the U.S., Rogers in Canada, and Kyivstar in Ukraine.
“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,” added SpaceX President and COO Gwynne Shotwell.
“SpaceX’s first generation Starlink satellites with Direct to Cell capabilities have already connected millions of people when they needed it most – during natural disasters so they could contact emergency responders and loved ones – or when they would have previously been off the grid. In this next chapter, with exclusive spectrum, SpaceX will develop next generation Starlink Direct to Cell satellites, which will have a step change in performance and enable us to enhance coverage for customers wherever they are in the world.”
Starlink launched its first Direct to Cell satellites back in January 2024 and has been steadily building out the service. The company completed deployment of its first-generation Direct to Cell constellation earlier this summer.
While T-Mobile’s Starlink-powered “T-Satellite” offering is already providing satellite messaging, Starlink’s Direct to Cell network recently expanded to support data for apps like Google Maps, X, and WhatsApp. The addition of licensed spectrum could pave the way for faster expansion and more reliable service worldwide.
EchoStar says proceeds from the deal will go toward debt retirement and funding its ongoing operations. The agreement is still subject to regulatory approval.
