(MENAFN) In a significant deal shaking up the satellite communications sector, US-based provider EchoStar has finalized an agreement to sell a massive portfolio of spectrum licenses to SpaceX. The transaction, valued at approximately $17 billion, was announced on Monday and includes EchoStar's entire AWS-4 and H-block spectrum holdings.

The sale's structure involves a mix of cash and equity, with each portion potentially reaching up to $8.5 billion. "Additionally, the definitive agreement provides for SpaceX to fund an aggregate of approximately $2 billion of cash interest payments payable on EchoStar debt through November of 2027," an EchoStar statement confirmed.

This pivotal acquisition of radio wave frequency ranges will enable a long-term commercial partnership between the two companies. As part of this arrangement, EchoStar's Boost Mobile customers will gain access to SpaceX's "next generation" Starlink Direct to Cell service via their cloud-native 5G core.

"This transaction with SpaceX continues our legacy of putting the customer first as it allows for the combination of AWS-4 and H-block spectrum from EchoStar with the rocket launch and satellite capabilities from SpaceX to realize the direct-to-cell vision in a more innovative, economical and faster way for consumers worldwide," stated Hamid Akhavan, CEO of EchoStar.

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