EchoStar Sells Spectrum to SpaceX, Cancels MDA Space Contract

EchoStar agreed on September 8, 2025 to sell its AWS-4 and H-block spectrum licenses to SpaceX for $17 billion and terminate its $1.3 billion MDA Space satellite contract.

The move marks a strategic shift for EchoStar as it addresses a Federal Communications Commission probe over unused spectrum and forges a long-term commercial partnership with SpaceX’s Starlink Direct to Cell network.

EchoStar will receive up to $8.5 billion in cash and $8.5 billion in SpaceX Class A stock at $212 per share, while SpaceX assumes $2 billion in interest payments through November 2027. Under a related agreement, EchoStar’s Boost Mobile customers will gain access to Starlink’s next-generation satellite-to-cell service, expanding connectivity in underserved areas. EchoStar has agreed to compensate MDA Space Ltd. for all termination costs and fees under their August 1 low-Earth-orbit constellation contract, which has now been cancelled.

Regulators have pressed EchoStar over its spectrum usage, with FCC Chairman Brendan Carr urging the company to deploy or divest idle frequencies. This transaction settles those concerns by transferring 50 MHz of licensed spectrum to SpaceX, which plans to integrate it into its LEO and direct-to-cell services. EchoStar’s remaining operations-including DISH TV, Sling and Hughes-will continue unaffected.

The deal also strengthens SpaceX’s global Starlink footprint, enabling enhanced coverage and capacity for direct-to-cell capabilities. Gwynne Shotwell, SpaceX president and COO, hailed the acquisition as a step toward eliminating mobile dead zones and boosting disaster response connectivity worldwide.

With the spectrum sale and commercial agreement in place, EchoStar refocuses on its core businesses and sheds major constellation ambitions, while SpaceX advances its vision of ubiquitous satellite-based cellular service.