Elon Musk’s SpaceX has agreed to acquire 50MHz of wireless spectrum and Mobile Satellite Service spectrum licenses from EchoStar, for use in the Starlink satellite network.

EchoStar will sell its AWS-4 and H-block spectrum licenses in exchange for $8.5 billion in cash and $8.5 billion SpaceX stock. SpaceX said the deal would let it develop and deploy its “Direct to Cell” constellation, which it claims can provide broadband-speed internet access to mobile phones across the world. Of the cash, $2 billion will be made as a direct cash interest payments on debt held by Echostar.

SpaceX last year received the Federal Communication Commission’s approval to go forward with plans to offer a direct-to-phone version of its Starlink satellite internet service, with T-Mobile as a provider. This

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