SpaceX strikes $17B deal to buy EchoStar’s spectrum for Starlink’s direct-to-phone service | TechCrunch

Elon Musk’s SpaceX has agree Get 50MHz wireless spectrum and mobile satellite service spectrum licenses from Echostar for use with Starlink satellite networks.

Echostar will sell its AWS-4 and H-Block Spectrum licenses in exchange for $8.5 billion in cash and $8.5 billion in SpaceX stock. SpaceX said the deal would allow it to develop and deploy its “direct to cell” constellation, claiming that this could provide broadband speed internet access to phones around the world. In this cash, it will be paid for $2 billion as direct cash interest on debts held by Echostar.

SpaceX last year Approved by the Federal Communications Commission To advance its direct phone version of Starlink satellite internet service, T-Mobile is the provider. This range purchase makes SpaceX more operational and free from relying on other network providers.

SpaceX specifically says that once the next satellite is running, the new spectrum will directly enable the “optimized 5G protocol.” The deal also provides Echostar customers with Starlink enabled direct to phone service.

The deal was conducted under great pressure from the FCC, which investigated the spectrum holdings of Echostar in Mayback Public encouragement from SpaceX. According to BloombergPresident Trump personally urged Echostar CEO Charlie Ergen to sell the Spectrum license in the following weeks. August 26, Echostar Sold $23 billion AT&T for spectrum license.

Echostar said in a statement that it believes that, along with the AT&T deal, the sale of Spectrum to SpaceX today will resolve the FCC query.