The U.S. Federal Communications Commission will terminate its investigation into EchoStar's 5G buildout obligations in the country, according to a regulatory filing from the company on Tuesday. ...

Core Insights - SpaceX has acquired $17 billion worth of EchoStar's wireless spectrum, enhancing its capabilities in cellular data transmission [1] - The acquisition is expected to significantly boost SpaceX's Starlink internet service, increasing its direct-to-cell coverage capacity by over 100 times [2] - T-Mobile is the primary beneficiary of this deal, as it will enhance its existing 5G network with Starlink's capabilities, creating a competitive advantage [4] Group 1: Spectrum Acquisition - SpaceX's acquisition of EchoStar's spectrum is aimed at improving its satellite texting partnership with T-Mobile, known as T-Satellite [1] - The spectrum operates in the 1.9 and lower 2GHz bands, which are crucial for cellular data transmission [1] - The acquisition was prompted by SpaceX's complaint to the FCC regarding EchoStar's underutilization of its spectrum [5] Group 2: Impact on Services - Starlink's direct-to-cell service will allow users in remote areas to text, call, or use apps without relying on traditional cellular towers [2] - Boost Mobile customers will also gain access to Starlink's direct-to-cell network as part of the deal [6][7] - The combination of T-Mobile's 5G network and Starlink's capabilities is expected to create a hybrid network with significant advantages [4] Group 3: Regulatory Considerations - The spectrum acquisition is subject to regulatory approval, which is expected to be complex [8] - The FCC investigation into EchoStar's spectrum usage is anticipated to conclude following EchoStar's recent sale of $23 billion in spectrum to AT&T [7]

What is SpaceX's offering here and what is SpaceX getting. Absolutely. So Space X is offering a much needed infusion of cash for EchoStar.It's helping EchoStar beat a regulatory probe that's been hanging over it for months in which EchoStar could have lost many of its valuable spectrum licenses because the FCC said that it wasn't putting them to use. So this deal allows EchoStar to partner with Space X and deliver direct to device service. And that's a goal that Space X has had for a long time.So both compa ...

Core Insights - EchoStar's stock surged nearly 20% following the announcement of a $17 billion spectrum sale to SpaceX, which includes $8.5 billion in cash [1][3] - The deal allows SpaceX's Starlink to utilize the spectrum, while also providing EchoStar with funding for debt interest payments [4] - Other companies in the space-based cellular broadband sector, such as AST SpaceMobile and Iridium Communications, saw their stock prices decline due to the competitive implications of the EchoStar-SpaceX deal [2][3] Company Performance - EchoStar's stock has increased by 215% year-to-date, closing at $80.63 after the announcement [3] - AST SpaceMobile's shares fell by 3.9% to $40.77, while Iridium's stock dropped nearly 15% to $21.39 [3] - Globalstar's stock rose by 21.5% to close at $37.94, benefiting from the spectrum sale [3] Industry Dynamics - The competition among Starlink, AST, and Iridium is intensifying, particularly in providing satellite connectivity for smartphones [2] - Analysts suggest that T-Mobile may gain an advantage due to its existing agreement with Starlink, while AT&T and Verizon could be disadvantaged [5][6] - The potential for a satellite phone service from Musk's ventures raises questions about the future competitive landscape in the telecommunications industry [6] Financial Implications - The EchoStar-SpaceX deal includes SpaceX funding approximately $2 billion in cash interest payments on EchoStar's debt through November 2027 [4] - EchoStar's recent spectrum sales have improved its balance sheet, allowing it to hold onto remaining spectrum for potentially higher future valuations [9][10] - Despite a decline in satellite TV subscribers, EchoStar added 212,000 wireless subscribers, exceeding expectations [11]

Core Viewpoint - EchoStar (SATS) has signed a significant agreement to sell its AWS-4 and H-block spectrum licenses to SpaceX for approximately $17 billion, which has led to a substantial increase in its stock price [1][3]. Group 1: Financial Impact - The recent agreement with SpaceX follows a similar multibillion-dollar transaction with AT&T, indicating a strategic shift in EchoStar's asset management [1]. - EchoStar's stock has surged over 200% since late August, reflecting strong market confidence following these deals [2]. - The combined proceeds from the spectrum sales are expected to significantly improve EchoStar's financial position by nearly eliminating its $30 billion debt burden, which incurred $480 million in interest payments last year [5]. Group 2: Strategic Partnerships - The deal with SpaceX includes a strategic commercial partnership that will enable EchoStar's Boost Mobile subscribers to access SpaceX's Starlink Direct-to-Cell service, enhancing wireless coverage in remote areas [4]. - This arrangement allows EchoStar to maintain beneficial access to its spectrum while monetizing valuable assets, potentially unlocking further upside for its shares over time [4]. Group 3: Market Sentiment - Despite the recent stock surge, EchoStar's shares have a modest price-book (P/B) ratio of 0.98x, suggesting they may not be significantly overvalued at current levels [5]. - Wall Street analysts maintain a consensus rating of "Moderate Buy" for SATS stock, but the mean target price of approximately $65 indicates a potential downside of nearly 20% from current levels [7].

SpaceX's $17 billion acquisition of AWS-4 and H-block wireless spectrum licenses from EchoStar (SATS) is shaking up the stock market today. While the stock is continuing to build on this morning's gains, rival AST SpaceMobile Inc (NASDAQ:ASTS) is buckling under the pressure of the strengthened competition.ASTS cratered following the announcement, off 6.1% to trade at $39.84, at last check, erasing yesterday's brief rebound. The 120-day moving average has moved in as support, as the equity trades at levels n ...

Late last month, shares in EchoStar Corporation (Nasdaq: SATS) entered the stratosphere. The stock jumped as much as 80% in premarket trading on August 26 after it was announced that the company would... ...

Welcome back to NextGen Investing. It's now time to discuss some of the fallout we're seeing today in telecoms as a result of this Echoar as well as SpaceX deal. Joining us now to discuss more is George Tillis, senior markets correspondent for the network.George, walk us through this story. I think this is really fascinating and also the way it's going to impact some of these more legacy type players. I mean, tell us your thoughts here.>> Well, yeah, this is um this is ongoing. Um when it comes to technolog ...

Key Takeaways U.S. equities were higher at midday ahead of key inflation data coming this week. The Dow Jones Industrial Average, S&P 500, and Nasdaq all rose. Shares of EchoStar took off after the DISH TV and Boost Mobile operator sold some spectrum licenses to Elon Musk's rocket and satellite company SpaceX for about $17 billion. Avishek Das / SOPA Images / LightRocket via Getty Images Close Oil and gold futures advanced. The yield on the 10-year Treasury note declined. The U.S. dollar gained on the yen, ...

This gives them the ability to give direct to device service. So is this a coup for Space X that they've been able to pull this off. Well, had already been in the mix when it came to that AT&T spectrum sale as well.Remember, $23 billion worth just in August. This is why we've seen EchoStar shares at a record high before even trading today. There are up 100% in the last few days, let's call it in the last month, because they're doing this sale after sale of their spectrum.But this really gives space X more b ...