Elon Musk’s SpaceX has agreed to pay $17 billion for wireless spectrum licenses from EchoStar to boost its Starlink satellite network, the telecommunications firm said Monday.
Elon Musk’s SpaceX has agreed to pay $17 billion for wireless spectrum licenses from EchoStar to build out its Starlink satellite network, the telecommunications firm said Monday.
The deal includes $8.5 billion in cash and up to $8.5 billion of SpaceX’s stock portfolio for two blocks of wireless spectrum that could expand its reach to cellphone users.
SpaceX also agreed to pay about $2 billion of cash toward interest payments on EchoStar’s debt through November 2027.
The deal comes after the FCC in May warned EchoStar it was investigating its commitment to provide 5G service in the US, questioning its buildout extension and mobile-satellite service.
