EchoStar offloads satellite spectrum to SpaceX for $17 billion

Dish parent company EchoStar is selling wireless spectrum licenses to SpaceX for around $17 billion, the companies announced on Monday. SpaceX says it will use the spectrum to create the “next generation” of Starlink’s cellular satellite service, which customers of the EchoStar-owned Boost Mobile will gain access to as part of the deal.

In May, FCC Chair Brendan Carr opened a probe into EchoStar’s 5G expansion after receiving a complaint from SpaceX, which claimed the company “barely uses” its spectrum for satellite connectivity. EchoStar had originally planned to use its AWS-4 (2GHz) spectrum band to enable direct-to-device satellite cell service, but this sale puts an end to that goal.

In the press release, EchoStar CEO Hamid Akhavan said the deal will allow SpaceX “to realize the direct-to-cell vision in a more innovative, economical and faster way for consumers worldwide.”