Spacex Strikes $17b Deal To Buy Echostar’s Spectrum For Starlink’s Direct-to-phone Service

Elon Musk’s SpaceX has agreed to get 50MHz of wireless spectrum and Mobile Satellite Service spectrum licenses from EchoStar, for usage successful nan Starlink outer network.

EchoStar will waste its AWS-4 and H-block spectrum licenses successful speech for $8.5 cardinal successful rate and $8.5 cardinal SpaceX stock. SpaceX said nan woody would fto it create and deploy its “Direct to Cell” constellation, which it claims tin supply broadband-speed net entree to mobile phones crossed nan world. Of nan cash, $2 cardinal will beryllium made arsenic a nonstop rate liking payments connected indebtedness held by Echostar.

SpaceX past twelvemonth received nan Federal Communication Commission’s approval to spell guardant pinch plans to connection a direct-to-phone type of its Starlink outer net service, pinch T-Mobile arsenic a provider. This spectrum acquisition gives SpaceX much state to operate, without having to dangle connected different web providers arsenic much.

In particular, SpaceX said nan caller spectrum will alteration “optimized 5G protocols” successful its nonstop to telephone service, erstwhile nan adjacent statement of satellites is operational. The woody besides gives customers of EchoStar’s Boost Mobile work entree to Starlink’s nonstop to telephone service.

EchoStar has been seeking a waste successful nan aftermath of an FCC investigation into its usage of nan spectrum, launched connected May 12. According to Bloomberg, President Trump personally urged EchoStar CEO Charlie Ergen to waste nan spectrum licenses successful nan weeks that followed. On August 26, EchoStar sold $23 billion worthy of spectrum licenses to AT&T.

In a statement, EchoStar said it believes that, together pinch nan AT&T deal, today’s spectrum waste to SpaceX will resoluteness nan FCC inquiry.