EchoStar, a global technology, networking, and TV entertainment firm, has forged a $1.7 billion agreement with SpaceX, a worldwide space technology firm, to sell its AWS-4 and H-block spectrum licenses.
A spectrum license is a legal authorization from the Federal Communications Commission (FCC) or other governmental agency that allows a company to have exclusive rights to use a specific band of radio frequencies for a designated amount of time and geographic region. Spectrum licenses prevent interference and ensure operations.
The deal will comprise up to $8.5 billion in cash and another $8.5 billion in SpaceX stock with the value calculated at the time of the agreement signing. In addition, the agreement allows for SpaceX to fund a total of about $2 billion in cash interest payments, which will be payable on EchoStar debt through November 2027….