Elon Musk's SpaceX has reached a deal worth about USD 17 billion with EchoStar for spectrum licenses that it will use to beef up its Starlink satellite network.
The deal for EchoStar's AWS-4 and H-block spectrum licenses includes up to USD 8.5 billion in cash and up to USD 8.5 billion in SpaceX stock. SpaceX will make approximately USD 2 billion in cash interest payments on EchoStar debt through November 2027.
SpaceX and EchoStar will enter into a long-term commercial agreement which will allow EchoStar's Boost Mobile subscribers to access SpaceX's next generation Starlink Direct to Cell service.
Last month AT&T said that it will spend USD 23 billion to acquire wireless spectrum licenses from EchoStar, a significant expansion of its low- and mid-band coverage networks.
EchoStar said that it anticipates that the AT&T deal and the SpaceX transaction will resolve recent inquiries from the Federal Communications Commission about the rollout of 5G technology in the US.
EchoStar said Monday that it will use the transaction's proceeds partly to pay down debt. Current operations of Dish TV, Sling and Hughes will not be impacted by the deal, the company said.
