Skip to content
Science — space-and-astronomy

US agreement worth $17 billion to enhance direct-cell service operations

Satellite communications provider EchoStar, based in the U.S., has reached an agreement to sell spectrum licenses worth around $17 billion to SpaceX.

,   and  Administrator
2 min read
Boosting direct-to-cell services via a $17 billion U.S. agreement
Boosting direct-to-cell services via a $17 billion U.S. agreement

US agreement worth $17 billion to enhance direct-cell service operations

On September 8, 2025, Elon Musk's SpaceX and U.S.-based satellite communications provider EchoStar announced a significant agreement. The deal, worth approximately $17 billion, will see SpaceX purchase EchoStar's AWS-4 and H-block spectrum licences.

The agreement, however, does not reveal the specifics of the cash payment or the total value of the stock payment. According to sources, around $8.5 billion will be paid in cash, with a further $8.5 billion in SpaceX stock.

The transaction will mark the establishment of a long-term commercial partnership between the two companies. This partnership will enable EchoStar's Boost Mobile subscribers to access SpaceX's "next-generation" Starlink Direct to Cell service.

SpaceX's cloud-native 5G core will facilitate the partnership, aiming to deliver direct-to-cell services in a more innovative, economical, and faster way globally.

In addition, SpaceX will fund around $2 billion in interest payments on EchoStar debt through November 2027. The combined capabilities of the two companies are intended to revolutionise the satellite communications industry.

EchoStar CEO Hamid Akhavan stated that the agreement continues EchoStar's focus on putting customers first. However, the agreement does not provide any new details about the transaction or establish any new long-term commercial partnership details beyond enabling Boost Mobile subscribers to access SpaceX's Starlink Direct to Cell service.

The deal includes provisions for the use of EchoStar's spectrum licences by SpaceX, but it does not mention any new provisions for interest payments on EchoStar debt or provide details about the use of EchoStar's spectrum licences beyond the previously mentioned partnership.

The official transaction completion date is pending regulatory approval but is expected soon. The combined capabilities of EchoStar and SpaceX are set to redefine the satellite communications industry, offering customers a more efficient, innovative, and economical service.

Read also:

Related

Latest