SpaceX Agrees on a $17 Billion Purchase of EchoStar's Spectrum for Starlink's Enhancement

SpaceX, the aerospace manufacturer and satellite internet service provider, has announced a significant partnership with EchoStar, a leading provider of satellite operations and video delivery solutions. This deal aims to further boost SpaceX's Starlink satellite internet service and propel its ambitions for direct-to-cell connectivity.

According to Gwynne Shotwell, SpaceX's president and COO, the transaction will enable SpaceX to eliminate mobile dead zones globally. The acquisition includes EchoStar's AWS-4 and H-block spectrum licenses, which are designated for satellite and mobile communications.

The deal, valued at approximately $17 billion, involves up to $8.5 billion in cash, up to $8.5 billion in SpaceX stock, and commitments to cover $2 billion in EchoStar debt interest payments through 2027.

This partnership represents a major leap in independence and capability for SpaceX, as it allows the company to own its own spectrum for faster and self-directed service rollout. The new spectrum acquired from EchoStar will allow SpaceX to design and launch a new generation of Starlink satellites with improved performance.

The network of Starlink satellites already connects over 7 million customers in more than 150 countries. This partnership with EchoStar is expected to expand this network and enhance the service's capabilities.

It is worth noting that the deal does not involve any advertisements for Tesla or its products. SpaceX has already collaborated with wireless carriers like Rogers in Canada, T-Mobile in the United States, and many others around the world. This partnership with EchoStar will not affect these existing partnerships.

SpaceX and EchoStar will enter a long-term commercial partnership, allowing Boost Mobile customers access to the next generation of Starlink Direct-to-Cell services. Until now, satellite operators seeking Direct-to-Cell service typically relied on partnerships with terrestrial wireless carriers.

The deal is pending regulatory approvals and is expected to close in the coming months. Gwynne Shotwell expressed her satisfaction with the deal, stating that it will help SpaceX achieve its goal of providing fast, reliable internet to everyone, everywhere.

The text does not provide any new information about the financial aspects of the deal, such as the exact amounts of cash or stock involved, or the terms of the debt interest payment commitments. Additionally, no specific details about the referral link for Tesla's Full Self-Driving (FSD) were mentioned in the text.

This partnership between SpaceX and EchoStar is a significant step forward in the advancement of satellite technology and the pursuit of universal internet access. As SpaceX continues to innovate and expand its services, it is poised to become a major player in the global telecommunications industry.