SpaceX and EchoStar have a business partnership centered on a major spectrum acquisition deal announced on September 8, 2025. Under this agreement, EchoStar is selling its AWS-4 and H-block spectrum licenses (totaling about 50 MHz, designated for mobile satellite and communications services) to SpaceX for approximately $17 billion. The payment structure includes up to $8.5 billion in cash and up to $8.5 billion in SpaceX stock, valued at the time of the agreement’s signing. Additionally, SpaceX has committed to funding around $2 billion in cash interest payments on EchoStar’s debt through November 2027.
This transaction enables SpaceX to develop and deploy an enhanced next-generation Starlink Direct-to-Cell satellite constellation. The acquired spectrum, which is particularly efficient for space-to-ground transmissions, will support optimized 5G protocols, allowing broadband-speed internet access directly to unmodified mobile phones worldwide and expanding coverage to eliminate mobile dead zones. The satellites will feature laser interconnects and represent a capacity increase of more than 100 times over the first-generation system, with deployment relying on SpaceX’s Starship rocket for larger payloads.
In parallel, the companies have entered a long-term commercial agreement that integrates EchoStar’s Boost Mobile subscribers—via its cloud-native 5G core—with SpaceX’s Starlink Direct-to-Cell service. This will provide Boost Mobile users with seamless access to satellite-based connectivity in areas without terrestrial coverage.
The deal stems from regulatory pressure: Earlier in 2025, the FCC launched an inquiry into EchoStar’s spectrum utilization and 5G buildout obligations, prompted by complaints from SpaceX alleging underuse of the licenses. This followed EchoStar’s financial struggles, including near-bankruptcy and a prior $23 billion spectrum sale to AT&T in August 2025. EchoStar has abandoned its own plans for a direct-to-device satellite constellation (including canceling a contract with MDA Space) to focus on this partnership, viewing it as a faster and more economical path to realizing direct-to-cell technology.
Prior to this, there were no significant direct relationships between the companies, though both operate in the satellite communications space—SpaceX via Starlink broadband and EchoStar via its Dish Network satellite TV services. This agreement positions SpaceX as a key enabler for EchoStar’s mobile operations while bolstering Starlink’s cellular ambitions.
Not financial advice