Elon Musk’s SpaceX has signed a $17 billion deal with EchoStar Corp. to acquire spectrum licenses crucial for its Starlink satellite network, advancing its push to deliver direct-to-device connectivity.
The agreement, announced Monday, covers EchoStar’s AWS-4 and H-block spectrum holdings, with SpaceX set to pay $8.5 billion in cash and $8.5 billion in stock. The company will also assume about $2 billion in cash interest payments on EchoStar’s debt through 2027.
“This transaction allows us to combine EchoStar’s spectrum with SpaceX’s launch and satellite expertise to accelerate the vision of direct-to-cell connectivity,” said Hamid Akhavan, EchoStar’s president and CEO.
The deal gives SpaceX control of key spectrum to underpin its Starlink “Direct to Cell” service, which will provide internet access to mobile devices without relying on terrestrial cell towers. Under a parallel agreement, Boost Mobile subscribers—owned by EchoStar—will be among the first to access the service.
News of the acquisition sent EchoStar shares up more than 23% in premarket trading.
Analysts say the deal positions SpaceX to lead satellite-powered mobile communications at a time when global carriers and regulators are exploring ways to integrate satellite and terrestrial networks. Starlink already operates thousands of satellites serving households and governments worldwide, particularly in rural and hard-to-reach areas.
By securing new spectrum, SpaceX is expected to broaden Starlink’s reach and capacity, opening the door to mass-market mobile services.
