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Elon Musk's SpaceX has entered into a $17 billion agreement with EchoStar for expanding the Starlink satellite network. According to a report by Reuters, the Elon Musk-owned firm is buying EchoStar's AWS-4 and H-block spectrum licenses. The deal aims to improve SpaceX's capacity to provide next-generation satellite connectivity globally.
The EchoStar agreement includes payment of up to $8.5 billion in cash and up to $8.5 billion in SpaceX stock. Moreover, the company will cover approximately $2 billion in cash interest payments tied to EchoStar’s debt through November 2027. This deal also comes with a long-term commercial partnership. Hence, ensuring EchoStar’s Boost Mobile subscribers gain access to SpaceX’s upcoming Starlink Direct to Cell service.
The announcement sent EchoStar shares soaring more than 23% in pre-market trading on September 8, 2025. EchoStar confirmed that the funds will be partly directed toward reducing its debt load, while existing operations such as Dish TV, Sling, and Hughes will remain unaffected.
The deal follows AT&T’s $23 billion spectrum purchase from EchoStar last month, marking a major shift in the competitive US wireless sector. EchoStar added that both agreements are expected to resolve pending Federal Communications Commission (FCC) inquiries regarding the deployment of 5G technology.
SpaceX is putting itself at the top of the satellite connectivity competition with this EchoStar deal. By integrating spectrum rights with its growing Starlink constellation, the company will close gaps in broadband and mobile coverage, especially in underserved areas. Elon Musk SpaceX's aggressive move has the potential to redefine the future of international communications. Thus, it establishes new standards for accessibility and innovation.
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