Talley Inc

Talleycom.com SHEET QUARTER 3 2025 Space X scoops up Echostar spectrum for $17B EchoStar struck a deal with SpaceX to sell the company's AWS-4 and H-block spectrum licenses for about $17 billion, consisting of up to $8.5 billion in cash and $8.5 billion in SpaceX stock. Not only does it resolve EchoStar's spectrum problems, but it also provides a way for EchoStar's Boost Mobile subscribers to get access SpaceX's next-generation Starlink direct to cell service. As part of the deal, SpaceX also agreed to fund a total of about $2 billion in cash interest payments on EchoStar debt through November of 2027. Shares of EchoStar have more than doubled since August 26, when EchoStar announced its intention to sell 600 MHz and 3.45 GHz spectrum to AT&T for about $23 billion. EchoStar shares, at $81.41, were up more than 20% in pre-market trading this morning. EchoStar said it expects the transaction with SpaceX, along with the previously announced spectrum sale to AT&T, will resolve the FCC's inquiries that began in May. That's when FCC Chairman Brendan Carr raised doubts about EchoStar's compliance with 5G buildout requirements and its use of Mobile Satellite Services (MSS) spectrum in the 2 GHz band. In a statement today, EchoStar President and CEO Hamid Akhavan noted the company's history of spectrum acquisitions and said this transaction will allow for the combination of AWS-4 and H- block spectrum from EchoStar to realize the direct-to-cell vision in a more economical and faster way for consumers worldwide. For SpaceX, the deal with EchoStar "will advance our mission to end mobile dead zones around the world," said SpaceX President and COO Gwynne Shotwell in a press release. With exclusive spectrum, "SpaceX will develop next generation Starlink Direct to Cell satellites, which will have a step change in performance and enable us to enhance coverage for customers wherever they are in the world." The decision to sell its satellite spectrum to SpaceX puts to rest the grand plans that EchoStar talked about regarding its own low Earth orbit (LEO) constellation for a direct-to-cell satellite phone service. MDA Space, which was recently named as the prime contractor for EchoStar's LEO constellation, put out a press release today saying it received a termination notice and that deal is off due to a "sudden change" in EchoStar's business strategy. SpaceX's Starlink as fourth provider? Investors are also wondering if this means Starlink becomes a greater competitive threat to Verizon, AT&T and T-Mobile. Analysts at BNP Paribas Securities said they don't think so, in part because if Starlink were serious about becoming a fourth wireless provider, it could have acquired EchoStar's 25,000 wireless towers that are now set to be decommissioned. "If Starlink had a real ambition to become a fully-fledged wireless carrier then all these towers and the AT&T spectrum would have been a great place to start. The fact that they didn't acquire them tells us that this is not their priority (at least certainly not near term)," the BNP Paribas analysts said. TMF Associates founder Tim Farrar noted that the SpaceX announcement comes right before Apple's own event tomorrow to announce the new iPhone. Apple is currently tied to Globalstar for its satellite connectivity, but SpaceX is going to need Apple's cooperation if it wants its spectrum supported in popular devices. "While this might not be on the agenda tomorrow, decisions about the future of the Apple-Globalstar partnership and the new C-3 constellation will be on everyone's minds," he said in a blog post. "The cancellation of the EchoStar D2D constellation was already a major blow for MDA, but any decision by Apple to pull back from the C-3 constellation would be even more devastating." Article Credit: https://www.fierce-network.com/wireless/spacex- scoops-echostar-spectrum-17b

• Cover