WASHINGTON — EchoStar has abandoned its plans to create a direct-to-device satellite constellation in low Earth orbit, selling spectrum to SpaceX while canceling a brand-new contract with MDA Space.

EchoStar announced Sept. 8 it reached an agreement to sell the rights to its AWS-4 and H-block spectrum to SpaceX for $17 billion, evenly split between cash and SpaceX stock. SpaceX will also make about $2 billion in cash interest payments on EchoStar debt through November 2027.

As part of the deal, customers of Boost Mobile, EchoStar’s terrestrial wireless service, will gain access to Starlink direct-to-cell services.

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