SpaceX acquires spectrum licenses from EchoStar in $17 billion deal

SpaceX has purchased wireless spectrum licenses from EchoStar for approximately $17 billion, a move that resolves a Federal Communications Commission (FCC) investigation into EchoStar’s underutilization of airwaves for 5G deployment.

The agreement sent EchoStar’s shares surging 22% in premarket trading Monday, September 08, 2025.

The rocket manufacturer will pay up to $8.5 billion in cash and issue $8.5 billion in stock while covering $2 billion in interest payments on EchoStar’s debt through 2027.

The transaction follows television entertainment service provider’s August, 2025 sale of $23 billion in spectrum to AT&T, collectively addressing FCC concerns about valuable mid-band spectrum remaining chronically underused.

The deal includes a commercial agreement allowing EchoStar’s Boost Mobile subscribers to access Starlink’s emerging direct-to-cell satellite services.

Elon Musk’s owned firm is believed to operate its satellite-to-phone network on owned frequencies after this agreement rather than relying solely on leased mobile carrier spectrum.

The FCC had questioned the satellite communications company compliance with 5G deployment obligations, prompting SpaceX to advocate for reallocating underused airwaves.

The resolution follows pressure from the Trump administration urging a settlement. EchoStar retains its Dish TV, Sling TV, Hughes Internet, and Boost Mobile operations despite losing major spectrum assets.

SpaceX has launched over 8,000 Starlink satellites since 2020, creating a low-Earth orbit network serving military, commercial, and rural users.

The spectrum acquisition significantly advances its direct-to-cell ambitions amid growing satellite connectivity competition.