TAMPA, Fla. \u2014 Geostationary satellite operator EchoStar is selling another batch of radio frequencies to help improve SpaceX\u2019s direct-to-cell services in the United States, in return for $2.6 billion worth of the company\u2019s stock.<\/p>\n
EchoStar said Nov. 6 it has agreed to sell 15 megahertz (MHz) of nationwide, unpaired AWS-3 uplink spectrum licenses to SpaceX, subject to regulatory approvals.<\/p>\n
In September, SpaceX sought regulatory approval to buy EchoStar\u2019s 50 MHz of paired (uplink and downlink) AWS-4 and H-block spectrum, including related international authorizations, in a $17 billion deal comprising a mix of cash and stock. SpaceX has also arranged about $2 billion in interim financing to cover EchoStar debt interest payments.<\/p>\n
Combining the licenses \u201cwith the rocket launch and satellite manufacturing capabilities from SpaceX accelerates the realization of powerful and economical direct-to-cell service offerings for consumers and enterprises worldwide, including our Boost Mobile customers,\u201d said Hamid Akhavan, who is handing the reins as EchoStar CEO to chairman Charlie Ergen as part of a management shakeup.<\/p>\n
EchoStar has a long-term agreement with SpaceX to enable Boost Mobile subscribers to access next-generation Starlink direct-to-cell services, which involve up to 15,000 upgraded satellites<\/a> designed to deliver a 20-fold increase in throughput.<\/p>\n The service is currently delivering data, voice, video and messaging to mobile dead zones across the U.S., Canada, Chile, Japan, Australia and New Zealand, according to Starlink.<\/p>\n \u201cSince first activating service earlier this year, more than 8M people and counting have relied on Starlink Direct to Cell to stay connected when terrestrial service is unavailable,\u201d the company said Nov. 4<\/a>.<\/p>\n EchoStar reported $939 million in revenues over the three months to Sept. 30 for its wireless division that predominantly comprises Boost, up 4.5% year on year.<\/p>\n However, revenues for its pay-TV unit that includes Dish Network fell 10.6% to $2.3 billion amid an ongoing decline in the satellite broadcast market.<\/p>\n EchoStar\u2019s broadband and satellite services division, which includes Hughes, saw revenues drop 10.6% to $346 million as competition from SpaceX\u2019s broader low Earth orbit Starlink service continues to mount.<\/p>\n Overall, revenues fell 7.1% to $3.6 billion. Adjusted OIBDA, or operating income before depreciation and amortization, declined 27% to $231 million.<\/p>\n Ready for more deals<\/p>\n