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

ENGLEWOOD, Colo. - EchoStar Corporation (NASDAQ:SATS) has agreed to sell its nationwide unpaired AWS-3 spectrum licenses to SpaceX for approximately $2.6 billion in SpaceX stock, according to a press release issued Thursday. The transaction comes as EchoStar, currently valued at $20.8 billion in market cap, continues to manage a substantial debt burden of over $30 billion.

The transaction involves spectrum in the 1695-1710 MHz uplink range, which is part of 3GPP Band 70n. This deal expands upon a previous agreement the companies entered into in September. EchoStar’s stock has demonstrated remarkable momentum, with a 202% price return over the past six months according to InvestingPro data, despite the company not being profitable over the last twelve months.

SpaceX plans to use the AWS-3 spectrum, along with previously acquired AWS-4 and H-block spectrum licenses from EchoStar, to develop and deploy its next-generation Starlink Direct to Cell constellation.

"This transaction with SpaceX, in addition to our previously announced spectrum transactions and commercial agreements, will strengthen EchoStar’s ability to develop new business opportunities and growth in value for our shareholders," said Hamid Akhavan, CEO of EchoStar Capital.

The companies stated that the transaction will close after receiving required regulatory approvals and satisfying other closing conditions.

EchoStar confirmed that current operations of its DISH TV, Sling TV, Boost Mobile, and Hughes services will not be affected by this transaction.

The spectrum sale represents another significant transfer of wireless assets to SpaceX, which has been expanding its telecommunications infrastructure. The company aims to use these spectrum resources to enhance its satellite-based mobile connectivity services.

In other recent news, EchoStar Corporation reported a 5.8% year-over-year decline in revenue for Q2 2025, totaling $3.7 billion. This financial report highlighted a significant decrease in operating income before depreciation and amortization, alongside a negative free cash flow, underscoring challenges in the competitive landscape. In a move to bolster its aerospace capabilities, Hughes Network Systems, an EchoStar company, acquired Anderson Connectivity, a firm known for its aerospace design and engineering services. This acquisition aims to enhance Hughes’ position in the aviation, space, and defense markets.

DISH Business introduced its new Edge Server Blade, a component designed to integrate internet-delivered live linear television with satellite TV services for commercial environments. This innovation targets hotels, senior living communities, and multi-unit residential buildings. Meanwhile, Boost Mobile announced a $100 discount on pre-orders for the new iPad Pro featuring Apple’s M5 chip, available to both new and existing customers with active phone plans. This offer requires adding Boost’s Tablet Plan and is exclusively available through the company’s website.

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