SpaceX to buy EchoStar's AWS-3 spectrum licenses for $2.6 billion

SpaceX is acquiring EchoStar’s AWS-3 licenses for about $2.6 billion in SpaceX stock. This is on top of the 2 GHz/AWS-4 spectrum that SpaceX agreed to buy from EchoStar for $17 billion in September. That spectrum is geared for mobile satellite services, whereas the AWS-3 spectrum is designated for terrestrial use. So far, SpaceX hasn’t said what it plans to do with the AWS-3 spectrum licenses, and the sale still must pass regulatory approvals. However, it’s sure to stoke rumors that Elon Musk plans to upend the mobile industry beyond the direct-to-device moves he’s made thus far with mobile network operators. With the addition of AWS-3 spectrum, “he can cobble together a network with that,” said industry analyst and Recon Analytics founder Roger Entner. Roy Chua, founder and principal of AvidThink, agreed that the acquisition of the unpaired AWS-3 spectrum licenses from EchoStar will provide SpaceX with a relatively contiguous, nationwide swath of mid-band airwaves that's ideal for D2D or direct-to-cell phone services.