SpaceX is acquiring more spectrum licenses from EchoStar in exchange for about $2.6 billion worth of shares in Elon Musk’s aerospace company. The transaction is an expansion of the $17 billion deal struck between the companies in September. SpaceX had previously said it would use these licenses for its Starlink satellites as it works to build out the network’s 5G connectivity.
The AWS-3 spectrum licenses changing hands include frequencies used in the US for commercial wireless services such as mobile and satellite communications. The distribution and use of spectrum are overseen by the federal government, which also lays out requirements for the use and development of spectrum for the benefit of consumers.
EchoStar had been facing pressure from the FCC to either use its substantial spectrum stockpile or seek divestment. This deal encompasses all of EchoStars’ remaining unpaired AWS-3 spectrum holdings. Earlier this year, the company sold $23 billion worth of licenses to AT&T in addition to its deals with SpaceX. The FCC ended its investigation into EchoStar after these sales. Today’s deal is pending regulatory approval and no precise closing date was shared.
This article originally appeared on Engadget at https://www.engadget.com/mobile/spacex-acquires-26-billion-more-in-spectrum-licenses-from-echostar-170233413.html?src=rss
