Englewood, Colorado, USA – 10 September 2025
In a move designed to resolve a long-running regulatory inquiry, EchoStar Corporation has agreed to sell its wireless spectrum licenses to SpaceX for approximately $17 billion. The deal, which includes a mix of cash and stock, is expected to give a significant boost to SpaceX’s Starlink satellite network and resolve a Federal Communications Commission (FCC) investigation into EchoStar’s use of its valuable spectrum assets.
The agreement, announced on Monday, will see SpaceX acquire EchoStar’s AWS-4 and H-block spectrum licenses. The transaction is valued at up to $8.5 billion in cash and an equal amount in SpaceX stock. Additionally, SpaceX will make $2 billion in cash interest payments on EchoStar’s debt through November 2027. This move, along with a separate $23 billion deal to sell spectrum to AT&T, is expected to bring to an end a review launched by the FCC concerning EchoStar’s compliance with its 5G buildout obligations.
A Solution to Regulatory Scrutiny
The FCC’s investigation was prompted by concerns that EchoStar was not adequately using its licensed spectrum, a finite public resource. The commission had questioned whether EchoStar was meeting its obligations to deploy 5G services in the U.S., a review that EchoStar itself had called a “dark cloud of uncertainty” over its business. FCC Chairman Brendan Carr has publicly expressed his satisfaction with the deal, noting that the two separate sales “hold the potential to supercharge competition” and extend new services to millions of Americans.
The sale to SpaceX is also accompanied by a long-term commercial agreement that will allow EchoStar’s Boost Mobile subscribers to access SpaceX’s next-generation Starlink Direct-to-Cell service. This arrangement will enhance the mobile service’s connectivity, particularly in remote areas that lack traditional cellular coverage. The acquisition of these licenses is a critical step for SpaceX, as it will significantly increase the capacity of its “direct-to-cell” service, which aims to provide mobile connectivity from space.
A Win for Both Companies
For EchoStar, the deals provide a crucial financial lifeline, with the company planning to use the proceeds to pay down debt and fund its continued operations. The company has stated that the operations of its other businesses, including Dish TV, Sling, and Hughes, will not be impacted by the transaction.
While the deal still requires formal approval from the FCC, the outcome of the regulatory review is seen as a strong indicator that the transaction will be approved. The Rural Wireless Association has called for regulators to scrutinize the deal to ensure the public interest is protected and to prevent a decrease in competition and an increase in prices. However, many analysts believe the deal is a win-win, allowing SpaceX to enhance its Starlink network while resolving a major regulatory headache for EchoStar.
