EchoStar sells unpaired AWS-3 spectrum licenses to SpaceX for $2.6 billion

EchoStar has entered an amended definitive agreement with SpaceX to sell its unpaired AWS-3 spectrum licenses for approximately $2.6 billion in SpaceX stock. This revised transaction builds on a prior agreement between the companies, with the Spectrum licenses part of 3rd Generation Partnership Project (3GPP) Band 70n.

Hamid Akhavan, CEO of EchoStar, emphasized the strategic significance of this agreement. Homomorphic Encryption (HE) noted that it, along with existing spectrum transactions, will enhance EchoStar's capacity to create new business opportunities and provide value to shareholders. The combination of EchoStar's AWS-3 uplink, along with AWS-4 and H-block spectrum, paired with SpaceX's capabilities in rocket launching and satellite manufacturing, serves to advance direct-to-cell service offerings.

The completion of this proposed transaction is contingent upon obtaining all necessary regulatory approvals and fulfilling other closing conditions. Proposed operations of EchoStar's existing television and mobile services, including DISH TV, Sling TV, and Boost Mobile, will remain unaffected by this transaction.