EchoStar Corporation has announced a finalized a definitive agreement to sell its AWS-4 and H-block spectrum licenses to SpaceX for approximately $17 billion. The deal includes up to $8.5 billion in cash and up to $8.5 billion in SpaceX stock, valued at the time the agreement was signed. As part of the transaction, SpaceX will also fund around $2 billion in cash interest payments on EchoStar’s debt through November 2027.
This comes as AT&T has agreed to buy some of DISH’s other Spectrum for $23 billion.
DISH’s SpaceX agreement includes a long-term commercial partnership between the two companies. This partnership will allow EchoStar’s Boost Mobile subscribers to access SpaceX’s next-generation Starlink Direct to Cell service through EchoStar’s cloud-native 5G core. The collaboration aims to integrate EchoStar’s spectrum assets with SpaceX’s satellite and rocket launch capabilities to enhance direct-to-cell connectivity for consumers globally. The service is expected to improve mobile coverage, particularly in areas previously lacking reliable network access.
The transaction aligns with EchoStar’s strategic focus on leveraging its spectrum assets to advance global 5G connectivity standards. The company has emphasized that combining its AWS-4 and H-block spectrum with SpaceX’s satellite technology will accelerate the deployment of innovative and cost-effective direct-to-cell solutions. SpaceX, in turn, plans to develop advanced Starlink Direct to Cell satellites, which are expected to significantly improve performance and expand coverage for users worldwide, including in remote and underserved regions.
The deal is anticipated to address ongoing inquiries from the Federal Communications Commission (FCC) regarding EchoStar’s spectrum holdings, particularly when considered alongside a previously announced spectrum sale. The transaction’s completion is subject to regulatory approvals and other standard closing conditions. EchoStar plans to use the proceeds to retire certain debt obligations and support its ongoing operations and growth initiatives. The company has confirmed that its current operations, including DISH TV, Sling, and Hughes, will remain unaffected by the transaction.
EchoStar was advised by White & Case LLP and Steptoe LLP, while SpaceX was represented by Gibson Dunn & Crutcher LLP and HWG LLP. The agreement marks a significant step in combining satellite and terrestrial communication technologies to enhance global connectivity, particularly in areas prone to network disruptions or limited infrastructure. Both companies are positioning this deal as a transformative move to improve mobile access for consumers worldwide.
With this DISH’s hopes to become a major wireless provider to take on AT&T, Verizon, and T-Mobile have come to an end.
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