Spacex He has bought the Telecommunications spectrum of Echostar for 17,000 million dollars. Thus eliminates its main competitor in direct mobile satellite services.
Why is it important. This operation Turn Spacex the great dominator of satellite mobile connectivity. It will no longer compete with land operators, but will control the entire value chain, from the rocket to the phone.
- Spacex has paid 8.5 billion in cash and another 8.5 billion in shares for the AWS-4 and H-Block spectrum licenses of Echostar.
- In addition, it will cover additional 2 billion in interest payments of the Echostar debt until November 2027.
The movement eliminates the Direct-To-Cell constellation project of Echostar, which had been the main Starlink competitor in satellite mobile services. Charlie Ergen, founder of Echostar, has sold all his spectrum after decades to accumulate it without developing his own network.
In detail. Spacex will use these frequencies to Develop your next generation constellation Starlink Direct-to-Cell, which promises “a remarkable change in performance” with respect to the current one.
Technology works with existing LTE phones without the need for hardware, firmware or special applications. It currently operates with more than 600 satellites offering 4G coverage to more than six million users on five continents.
The backdrop. This purchase arrives just before the Apple event, where the new ones will be presented iPhone 17. There are those who speculate that Apple could reconsider their association with GlobalStar after seeing how Spacex eliminates competitors buying the entire spectrum available.
Between the lines. Spacex does not move by investment return to use, but by strategic domain. As you have already done in satellite connectivity by lowering prices aggressively to stop Amazon Kuiper, now it seeks to completely control the satellite mobile market before mature.
Yes, but. The new AWS-4 and H-Block frequencies are not compatible with current phones. Spacex will need manufacturers as Apple to include them in future devices. If Apple does not cooperate, Musk has already threatened to create his own “Starlink” phone.
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And now what? This operation leaves competitors as AST Spacemobile in a specially complicated position. AST needs to raise 400 million in the next few weeks just to stay afloat, Spacex already dominates in launch speed and satellite development.
The transaction also solves the FCC investigations on Echostar. With this sale and the previous one of another AT&T spectrum package for 23,000 million, Echostar seems to go to a gradual settlement of its operations.
Outstanding image | Spacex
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Xataka
by
Javier Lacort
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