SpaceX to Buy EchoStar Spectrum for $17B, Powering Starlink Direct-to-Cell Expansion

SpaceX announced a $17 billion deal to acquire wireless spectrum licenses from EchoStar ($SATS) to bolster its Starlink satellite network and expand direct-to-cell services. The agreement also allows EchoStar’s Boost Mobile customers to access Starlink coverage in underserved areas.

• SpaceX will pay $8.5B in cash and issue up to $8.5B in stock, while also covering $2B in EchoStar debt interest payments through 2027.
• The deal enables SpaceX to operate Starlink Direct to Cell services on its own licensed frequencies, improving performance and reducing reliance on leased spectrum.
• EchoStar shares surged nearly 22% in premarket trading on the news.
• Shares of U.S. carriers AT&T ($T), T-Mobile ($TMUS), and Verizon ($VZ) fell 4–5% in premarket trade amid competitive concerns.
• EchoStar will continue operating its Dish TV, Sling streaming, Hughes internet, and Boost Mobile businesses after the sale.
• The move follows FCC scrutiny of EchoStar’s spectrum use and comes months after it sold $23B worth of spectrum to AT&T.
• EchoStar has spent over $200K on lobbying in 2025, its first such spending since 2020, focused on wireless, spectrum, and video issues.

Relevant Companies

• SATS – Surged on news of $17B spectrum sale to SpaceX.
• T – Shares fell as SpaceX expands into direct-to-cell services.
• TMUS - Declined on competitive pressure from Starlink expansion.

Editor’s Note: This is a developing story. This article may be updated as more details become available.