SpaceX acquires EchoStar spectrum for $17 billion, advancing Starlink global mobile services.

The world's richest man Elon Musk ( owns the space company SpaceX, which has acquired AWS-4 and H-block spectrum licenses from EchoStar Corp. for up to $8.5 billion in cash and up to $8.5 billion in SpaceX stock for satellite and mobile communications. EchoStar ) SATS( surged nearly 20% yesterday to a historic high, and its bond prices also rebounded significantly.

SpaceX acquisition of EchoStar spectrum license

EchoStar Corporation was founded in 1980, focusing on innovation in satellite, mobile networks, and audio-visual technology. It possesses satellite communication technology and integrates terrestrial and satellite networks in mobile networking.

SpaceX has acquired AWS-4 and H-block spectrum licenses for satellite and mobile communications from EchoStar Corp. for up to $8.5 billion in cash and up to $8.5 billion in SpaceX stock, allowing EchoStar to address regulatory inquiries and repay debts. Additionally, SpaceX has agreed to pay approximately $2 billion in cash interest on EchoStar's debts before November 2027. This acquisition will combine EchoStar's spectrum with SpaceX's rocket launch and satellite capabilities to advance SpaceX's mission of providing mobile services from space and eliminating global mobile dead zones. Furthermore, it can also strengthen Starlink's direct-to-cell service )Direct-to-Cell(.

SpaceX does not need to rely on telecom operators, T-Mobile plummets.

Satellite operators like SpaceX seeking to provide space mobility services typically need to partner with at least one company that holds a terrestrial mobile license. SpaceX currently has a partnership with T-Mobile, and after acquiring its own spectrum, SpaceX will no longer have to rely on spectrum leasing from partners like T-Mobile.

EchoStar ) stock code SATS( surged nearly 20% yesterday to a historic high, and its bond prices also significantly recovered. However, the stock prices of other telecommunications operators fell, with T-Mobile down 4.1%, Verizon down 2.4%, and AT&T down 3.4%.

Since SpaceX launched its first Starlink satellite in 2019, the company has signed up about 6 million users in over 100 countries, far exceeding its competitors. In June of this year, the company also received approval from Indian regulatory authorities to launch satellite internet services in this most populous country in the world.

This article mentions that SpaceX acquired EchoStar's spectrum for $17 billion, advancing Starlink's global mobile services. It first appeared in Chain News ABMedia.