SpaceX strikes $17B deal to buy EchoStar’s spectrum for Starlink’s direct-to-phone service

SpaceX has reached a $17 billion agreement to acquire EchoStar’s AWS-4 and H-block spectrum licenses, paying $8.5 billion in cash and $8.5 billion in SpaceX stock. This acquisition is a strategic move to advance SpaceX’s “Direct to Cell” satellite constellation, enabling broadband-speed internet access directly to mobile phones worldwide. The deal also includes $2 billion in cash interest payments on EchoStar’s debt. By owning this spectrum, SpaceX aims to reduce its reliance on traditional network providers and plans to implement optimized 5G protocols in its direct-to-phone Starlink service once its next generation of satellites is operational. The transaction also benefits EchoStar’s Boost Mobile customers, granting them access to Starlink’s direct-to-phone service. EchoStar pursued the sale amid an FCC investigation into its spectrum usage, with reports indicating that former President Trump personally encouraged EchoStar CEO Charlie Ergen to sell the licenses. EchoStar believes that this sale, combined with a recent spectrum