(Reuters) – EchoStar on Monday agreed to sell wireless spectrum licenses to SpaceX for its Starlink satellite network for about $17 billion, after regulators scrutinized its underused assets intended for a 5G rollout.
The deal comes months after the Federal Communications questioned EchoStar’s compliance with buildout extensions and use of mobile-satellite service spectrum, raising concerns about whether it was meeting its obligations to deploy 5G in the U.S.
President Donald Trump had earlier prodded EchoStar and FCC Chair Brendan Carr to reach an amicable deal over the fate of the company’s wireless spectrum licenses.
Under the terms of the agreement, SpaceX will pay up to $8.5 billion in cash and issue up to $8.5 billion in stock. SpaceX has also agreed to cover roughly $2 billion in interest payments on EchoStar’s debt obligations through late 2027.
(Reporting by Harshita Mary Varghese in Bengaluru; Editing by Arun Koyyur)
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