$17 billion U.S. deal to boost direct-to-cell services

Anadolu Agency

U.S.-based satellite communications provider EchoStar has agreed to sell spectrum licences worth approximately $17 billion to SpaceX.

The deal covers all of EchoStar’s AWS-4 and H-block spectrum licences.

Under the agreement, up to $8.5 billion will be paid in cash, with a further $8.5 billion in SpaceX stock. The deal also includes provisions for SpaceX to fund around $2 billion in interest payments on EchoStar debt through November 2027.

The transaction will establish a long-term commercial partnership, enabling EchoStar’s Boost Mobile subscribers to access SpaceX’s “next-generation” Starlink Direct to Cell service via its cloud-native 5G core.

EchoStar CEO Hamid Akhavan said the agreement “continues our legacy of putting the customer first, combining EchoStar’s spectrum with SpaceX’s rocket and satellite capabilities to deliver direct-to-cell services in a more innovative, economical and faster way globally.”

In wireless communications, spectrum refers to the range of radio frequencies that support telephone, internet, and satellite services.

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