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September 08, 2025
EchoStar FCC: SpaceX revealed on Monday that it plans to acquire wireless spectrum licenses from EchoStar in a deal worth about $17 billion.
The move is designed to expand the reach of its Starlink satellite network and boost 5G capabilities. The agreement also gives EchoStar’s Boost Mobile users access to Starlink’s direct-to-cell service.
This will help deliver coverage in areas where mobile service has never been available. Gwynne Shotwell, president and COO of SpaceX, said the deal is a step toward ending mobile dead zones worldwide.
With exclusive spectrum, the company will create a new generation of Starlink Direct-to-Cell satellites. These satellites will offer stronger performance and provide customers with better coverage wherever they go.
EchoStar’s stock jumped nearly 22% in premarket trading after the news. Meanwhile, AT&T and T-Mobile slipped by more than 5%, and Verizon lost over 4%.
Since 2020, SpaceX has placed more than 8,000 Starlink satellites into low-Earth orbit. The expanding network has attracted strong interest from the military, transportation industries, and customers in remote areas.
The deal comes after the Federal Communications Commission raised doubts about EchoStar’s handling of mobile-satellite spectrum.
Regulators also questioned whether the company was meeting its 5G rollout commitments in the U.S. Back in August, EchoStar sold part of its nationwide spectrum holdings to AT&T in a $23 billion transaction.
The sale gave AT&T control of 50 MHz of mid-band and low-band spectrum across the country. Donald Trump, during his presidency, urged EchoStar and FCC Chair Brendan Carr to strike a fair deal over the company’s spectrum licenses.
The FCC has yet to issue a response. EchoStar stated that its agreement with SpaceX, combined with the earlier sale to AT&T, should put the regulator’s concerns to rest.
SpaceX will pay up to $8.5 billion in cash and another $8.5 billion in stock. The company has also committed to covering about $2 billion in interest on EchoStar’s debt until the end of 2027.
Following the sale, EchoStar will still manage its core businesses. These include Dish TV, the Sling streaming service, Hughes Internet, and the Boost Mobile brand.
SpaceX urged the FCC to reallocate underused airwaves for satellite-to-phone service, claiming EchoStar had fallen short on key obligations.
In a letter sent to the FCC in April, SpaceX argued that EchoStar’s 2 gigahertz spectrum is well-suited for sharing with next-generation satellite networks.
The company also said EchoStar has allowed valuable mid-band spectrum to sit idle for too long.
Through its deal with EchoStar, SpaceX will be able to run Starlink direct-to-cell services using its own licensed frequencies. Previously, it had to rely heavily on spectrum leased from carriers like T-Mobile.
In May, the FCC approved Verizon’s $20 billion acquisition of fiber-optic provider Frontier Communications. Earlier, in 2021, Verizon spent $52 billion to secure and clear essential spectrum.
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