SpaceX has acquired the rights to use a portion of EchoStar’s wireless spectrum for $17 billion, a move set to enhance its mobile phone service capabilities. The company, led by Elon Musk, will pay $8.5 billion in cash and another $8.5 billion in stock for the AWS-4 and H-block spectrum licenses. EchoStar plans to use the proceeds to pay down its existing debt and fund new growth initiatives. Already a major broadband provider through its Starlink satellite network, SpaceX entered the mobile sector via a partnership with T-Mobile. The newly acquired spectrum rights will significantly improve Starlink’s ability to connect directly to cell phones in remote areas lacking traditional tower coverage.
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