SpaceX has agreed to acquire EchoStar’s full portfolio of unpaired AWS-3 spectrum licenses for approximately $2.6 billion in SpaceX stock.
EchoStar said Thursday the transaction is expected to close following regulatory approvals and satisfaction of customary closing conditions.
What the Spectrum Deal Means for SpaceX & EchoStar?
According to EchoStar, the nationwide AWS-3 licenses operating in the 1695-1710 MHz uplink, 3GPP Band 70n, will support SpaceX’s efforts to develop its next-generation Starlink Direct to Cell network.
“This transaction with SpaceX, in addition to our previously announced spectrum transactions and commercial agreements, will strengthen EchoStar’s ability to develop new business opportunities and growth in value for our shareholders,” said Hamid Akhavan, CEO of EchoStar Capital.
“The combination of AWS-3 uplink, AWS-4 and H-block spectrum from EchoStar with the rocket launch and satellite manufacturing capabilities from SpaceX accelerates the realization of powerful and economical direct-to-cell service offerings for consumers and enterprises worldwide, including our Boost Mobile customers,” Akhavan added.
In September, SpaceX signed a definitive agreement to buy EchoStar’s AWS-4 and H-block spectrum licenses for approximately $17 billion in cash and stock.
EchoStar noted that operations of DISH TV, Boost Mobile, Sling TV and Hughes will remain unaffected by the deal.
FCC Initiates Step to Reauction AWS-3 Spectrum to Fund National Security
In March, the Federal Communications Commission approved proposed rules to update the competitive bidding rules for the AWS-3 spectrum bands as part of efforts to bring unused 5G-grade spectrum to market.
Proceeds from the auction will support the Secure and Trusted Communications Networks Reimbursement Program, also known as the “rip and replace” initiative. The FCC program is a national security effort aimed at removing Huawei and ZTE equipment from U.S. communications networks.
