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

"EchoStar will sell its AWS-4 and H-block spectrum licenses in exchange for $8.5 billion in cash and $8.5 billion SpaceX stock. SpaceX said the deal would let it develop and deploy its "Direct to Cell" constellation, which it claims can provide broadband-speed internet access to mobile phones across the world. Of the cash, $2 billion will be made as a direct cash interest payments on debt held by Echostar."

"SpaceX last year received the Federal Communication Commission's approval to go forward with plans to offer a direct-to-phone version of its Starlink satellite internet service, with T-Mobile as a provider. This spectrum purchase gives SpaceX more freedom to operate, without having to depend on other network providers as much. In particular, SpaceX said the new spectrum will enable "optimized 5G protocols" in its direct to phone service, once the next line of satellites is operational."

SpaceX agreed to acquire 50 MHz of wireless spectrum and Mobile Satellite Service licenses from EchoStar in a transaction totaling $17 billion split evenly between cash and SpaceX stock. The purchase includes EchoStar's AWS-4 and H-block licenses and will fund a $2 billion cash interest payment on EchoStar debt. The spectrum will support Starlink's Direct-to-Cell constellation and enable optimized 5G protocols for direct-to-phone broadband once new satellites are operational. Boost Mobile customers will gain access to the service. EchoStar sought a sale amid an FCC inquiry and expects this deal, plus an AT&T sale, to resolve the investigation.

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