SpaceX is set to purchase roughly $17 billion in wireless spectrum from EchoStar, $8.5 billion in cash and up to $8.5 billion in stock, along with $2 billion to cover EchoStar's debt interest through late 2027.
The acquisition of AWS-4 and H-block spectrum paves the way for Starlink's direct-to-cellphone service, dramatically boosting its mobile coverage and capacity and potentially enabling partnerships with carriers like Boost Mobile and T-Mobile.
The deal, which follows a $23 billion sale of other spectrum licenses to AT&T, is aimed at resolving an FCC review into EchoStar's underutilization of its spectrum assets. EchoStar's stock jumped about 21-22% in reaction, while telecom rivals dipped.
At the same time, the agreement enables Boost Mobile users to access Starlink's service in underserved areas.
What are your thoughts on this?
-
Follow for more insights!