SpaceX expands broadband service with $18 billion EchoStar deal
- On September 8, 2025, EchoStar announced they will sell spectrum licenses to SpaceX for $17 billion.
- The agreement includes $8.5 billion in cash and stock, also addressing EchoStar's debt through additional payments.
- This partnership marks a critical step in expanding global mobile connectivity through satellite technology.
In a significant development for telecommunications, U.S. company EchoStar announced on September 8, 2025, plans to sell spectrum licenses to SpaceX for a staggering $17 billion. This strategic agreement grants SpaceX access to EchoStar's AWS-4 and H-block spectrum licenses, which will facilitate the expansion of its broadband service to cell phones through its Starlink satellites. With this deal, SpaceX aims to enhance its Direct to Cell constellation, allowing users worldwide to enjoy reliable cell service even in areas lacking traditional coverage. SpaceX's decision to pursue this licensing arrangement stems from its ongoing commitment to address mobile connectivity gaps. The company has already made strides in this area with the launch of its first Direct to Cell satellites in 2024, achieving an operational fleet of 600 satellites in low-earth orbit. This Direct to Cell constellation is integrated with SpaceX's broader Starlink constellation, which consists of over 8,000 satellites. This interconnected network is poised to change telecommunications by enabling cell phones to send text messages and make videos and phone calls, irrespective of traditional service availability. Gwynn Shotwell, President of SpaceX, expressed enthusiasm for the partnership with EchoStar, emphasizing that the transaction advances the mission to eliminate mobile dead zones globally. The exclusive spectrum secured through this deal is expected to allow SpaceX to develop next-generation Starlink Direct to Cell satellites, which promise significant improvements in performance and coverage, ultimately benefiting customers everywhere. EchoStar's President and CEO Hamid Akhavan highlighted that this new direct-to-cell technology is set to redefine communication worldwide. The financial components of the deal include $8.5 billion in cash, up to $8.5 billion in SpaceX stock, and an additional $2 billion to address EchoStar's debt until November 2027. The arrangement marks a pivotal moment in the collaboration between these two companies, showcasing a powerful step towards reimagining global telecommunications through the use of satellite technology.