SpaceX is acquiring EchoStar’s spectrum licenses

Metaverse Planet September 9, 2025Last Updated: November 3, 2025

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SpaceX is acquiring EchoStar’s spectrum licenses in a deal valued at approximately $17 billion. The agreement aims to alleviate regulatory pressure from the FCC and will provide Boost Mobile subscribers with access to Starlink services.

The satellite and telecommunications company EchoStar has agreed to sell its spectrum licenses to SpaceX for its Starlink satellite network for around $17 billion. The deal is intended to resolve regulatory scrutiny the company faced during its 5G service expansion.

Following the news, EchoStar shares surged by nearly 22 percent in pre-market trading. This development is seen as a significant step toward addressing the Federal Communications Commission’s (FCC) concerns that EchoStar was underutilizing its spectrum resources.

Trump had intervened Previously, the FCC had questioned whether the company was meeting its 5G obligations and raised the possibility of revoking the licenses. U.S. President Donald Trump had also pressured the parties to find an amicable solution.

With this agreement, SpaceX will use EchoStar’s licenses to expand Starlink’s service area, particularly making its mobile and “direct-to-cell” satellite internet more widespread. The two companies also signed a commercial collaboration agreement. Accordingly, EchoStar’s Boost Mobile subscribers will gain access to Starlink’s direct-to-cell satellite service.

Last August, EchoStar completed a license sale to AT&T for approximately $23 billion. The company anticipates that with the completion of the SpaceX deal, all of the FCC’s concerns will be addressed.

According to the agreement, SpaceX will pay $8.5 billion in cash and provide an equal amount in stock. Additionally, the company will assume EchoStar’s interest payments of approximately $2 billion through the end of 2027.