EchoStar Sells $17B Satellite Spectrum to SpaceX in Landmark Deal
▼ Summary
– Dish parent company EchoStar is selling wireless spectrum licenses to SpaceX for approximately $17 billion to enhance Starlink’s cellular satellite service.
– As part of the deal, Boost Mobile customers will gain access to the next generation of Starlink’s satellite service.
– This sale, along with a previous $23 billion spectrum sale to AT&T, is expected to resolve an FCC investigation into EchoStar’s 5G expansion.
– The FCC probe was initiated after SpaceX complained that EchoStar barely used its spectrum for satellite connectivity.
– EchoStar’s CEO stated the deal will allow SpaceX to realize direct-to-cell service more innovatively, economically, and quickly for consumers worldwide.
EchoStar has finalized a landmark agreement to sell wireless spectrum licenses valued at approximately $17 billion to SpaceX, a move set to significantly advance the capabilities of satellite-based cellular connectivity. Under the terms of the deal, SpaceX will utilize the spectrum to develop what it describes as the next generation of Starlink’s cellular satellite service. As part of the arrangement, customers of Boost Mobile, which is owned by EchoStar, will gain access to the enhanced network once it becomes operational.
This transaction, combined with EchoStar’s earlier $23 billion spectrum sale to AT&T, is anticipated to bring closure to a regulatory inquiry initiated by the Federal Communications Commission. Earlier this year, FCC Chair Brendan Carr launched an investigation following a complaint from SpaceX alleging that EchoStar was underutilizing its spectrum resources for satellite connectivity. EchoStar had initially intended to deploy its AWS-4 spectrum band to enable direct-to-device satellite cell service, but this sale marks a strategic shift away from that objective.
In a public statement, EchoStar CEO Hamid Akhavan emphasized that the partnership will enable SpaceX to deliver on the promise of direct-to-cell technology more efficiently and on a broader scale. He noted that the collaboration aims to accelerate innovation and improve affordability for consumers around the world.
(Source: The Verge)
