EchoStar Sells Spectrum to SpaceX in $17B Deal

"EchoStar is selling its AWS-4 and H-block spectrum licenses for approximately $17 billion to SpaceX, the company announced today. Space X will pay about half of the amount in cash and the remainder in company stock under the agreement, which also provides for SpaceX to fund an aggregate of approximately $2 billion of cash interest payments payable on EchoStar debt through November of 2027."

""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," Hamid Akhavan, president and CEO of EchoStar, said in a prepared statement."

""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.""

SpaceX will purchase EchoStar's AWS-4 and H-block spectrum licenses for roughly $17 billion, paying approximately half in cash and the remainder in stock, and will fund about $2 billion of EchoStar's cash interest payments through November 2027. EchoStar will use the proceeds to retire certain debt obligations and to support ongoing operations and growth initiatives. The transaction requires regulatory approvals. The companies will enter a long-term commercial agreement to enable Boost Mobile subscribers via EchoStar's cloud‑native 5G core to access Starlink direct-to-cell service. Current DISH TV, Sling, and Hughes operations will remain unaffected.

Read at Telecompetitor