SpaceX obtains spectrum licenses from EchoStar in a significant $17 billion transaction
In a significant move for the satellite connectivity market, SpaceX has purchased wireless spectrum licenses from EchoStar for approximately $17 billion. The deal, announced on September 8, 2025, includes the AWS-4 and H-Band licenses.
This acquisition is a strategic move for SpaceX, strengthening its position in the satellite connectivity market. The transaction follows EchoStar's sale of $23 billion in spectrum to AT&T in August 2025, but EchoStar retains its operations of Dish TV, Sling TV, Hughes Internet, and Boost Mobile.
The spectrum acquisition is a significant step in the development of SpaceX's satellite connectivity services. Since 2020, SpaceX has launched over 8,000 Starlink satellites, creating a low-Earth orbit network. With the new spectrum, SpaceX will be able to further enhance its services and advance its direct-to-cell ambitions.
The agreement resolves a Federal Communications Commission (FCC) investigation into EchoStar's underutilization of airwaves for 5G deployment. The FCC had questioned SpaceX's compliance with 5G deployment obligations, leading to advocacy for reallocating underused airwaves. The resolution of the investigation was influenced by pressure from the Trump administration.
The deal also includes a commercial agreement allowing EchoStar's Boost Mobile subscribers to access Starlink's emerging direct-to-cell satellite services. This move is expected to benefit both companies, as SpaceX will operate its satellite-to-phone network on owned frequencies, and EchoStar's terrestrial operations remain unaffected.
SpaceX will pay up to $8.5 billion in cash and issue $8.5 billion in stock for the acquisition. Following the announcement, EchoStar's shares surged 22% in premarket trading on Monday, September 08, 2025.
The growing satellite connectivity competition is a context for SpaceX's direct-to-cell ambitions. As more companies invest in satellite technology, the race to provide reliable, high-speed internet from space is heating up. This acquisition by SpaceX is a clear indication of its commitment to staying at the forefront of this competitive landscape.
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