EchoStar Corporation (Nasdaq: SATS) is a global telecommunications company providing satellite communication, wireless telecommunications, and internet services. Operating through its Hughes Network Systems and EchoStar Satellite Services segments, it delivers services like pay TV, satellite network solutions, and broadband internet, serving enterprise, government, and consumer markets. EchoStar's offerings include geostationary high throughput satellites, low-earth orbit networks, and mobile solutions, with partners including Jersey Telecom and Swisscom. The company's brands include HughesNet, DISH TV, Sling TV, and Boost Mobile.
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MDA Space expects to be compensated for all related termination costs and fees following the EchoStar contract cancellation.
EchoStar canceled its contract with MDA Space to build a direct-to-device constellation.
EchoStar opted to sell its spectrum licenses to SpaceX instead of proceeding with the contract with MDA Space.
A class action claim has arisen over share sales by insiders before the EchoStar contract was terminated.
EchoStar has entered into an amended definitive agreement with SpaceX to sell the company’s unpaired AWS-3 licenses for approximately $2.6 billion in SpaceX stock valued as of September 2025.
The transaction between EchoStar and SpaceX builds on the agreement the companies entered into in September.
EchoStar’s unpaired AWS-3 licenses are nationwide and are part of 3GPP Band 70n.
SpaceX recently paid $17 billion for EchoStar’s mobile satellite service spectrum and made an additional $2.6 billion spectrum deal with EchoStar.
EchoStar will sell additional radio frequency bands to SpaceX for $2.6 billion.
The transaction between EchoStar and SpaceX will strengthen EchoStar's ability to develop new business opportunities and growth in value for its shareholders.
The AWS-3 licenses, along with AWS-4 and H-block spectrum currently held by EchoStar, will enable SpaceX to advance its Starlink Direct to Cell satellite constellation.
EchoStar and SpaceX intend to accelerate Starlink's ambitions in global direct-to-cell coverage and connectivity solutions.
Hamid Akhavan stated that combining EchoStar's radio frequency bands with SpaceX's rocket launch and satellite manufacturing capabilities will enable the rapid construction of a strong and affordable Direct to Cell service for Starlink.
Current operations of EchoStar's DISH TV, Sling TV, Boost Mobile, and Hughes business will not be impacted by the spectrum sale.
The 'AWS-3' license being sold by EchoStar covers radio frequencies nationwide, supporting both mobile phone and satellite communications.
The European Commission determines the licenses for the EU 2 GHz mobile satellite services band, which Viasat and EchoStar hold until their authorizations expire in May 2027.
In August, EchoStar sold part of its nationwide wireless spectrum license to AT&T for $23 billion.
EchoStar's paid television service Dish TV, streaming television service Sling TV, wireless service Boost Mobile, and satellite-based communication service Hughes will not be affected by the contract with SpaceX.
Hamid Akhavan is the CEO of EchoStar Capital, EchoStar's newly established investment division.
EchoStar contracted SpaceX to launch the EchoStar XXVI satellite in 2028.