Investing.com -- The Federal Communications Commission approved SpaceX's acquisition of approximately 65 megahertz of mid-band spectrum from EchoStar Corporation, paving the way for the deployment of a next-generation direct-to-device (D2D) network across the United States.

The commission granted applications from SpaceX, Spectrum Business Trust 2025-1, and EchoStar for a two-step transaction to assign EchoStar's AWS-4, AWS-H Block, and unpaired AWS-3 spectrum licenses to SpaceX. Under the agreement, valued at approximately $17 billion, the licenses will first be assigned to the Trust before transferring to SpaceX, with final consummation expected on or about November 30, 2027.

The approval includes waivers of terrestrial construction requirements, subject to stringent buildout conditions designed to ensure SpaceX meets deployment milestones comparable to a terrestrial wireless network. SpaceX must achieve specific performance metrics for downlink quality of service, uplink user throughput, and spectral efficiency across multiple interim and final deadlines spanning nine years from the transaction's effective date.

The commission stated the transaction serves the public interest by enabling SpaceX to provide enhanced mobile connectivity directly to consumer handsets via satellites, particularly in areas underserved by traditional terrestrial networks. The wider bandwidth operations enabled by the dedicated spectrum are expected to support a capacity increase of more than 100 times SpaceX's first-generation D2D system, potentially enabling full 5G cellular connectivity comparable to current terrestrial LTE service.

EchoStar, which reported 2025 consolidated revenues of approximately $15 billion and an operating loss of approximately $17.7 billion, will transition to a hybrid mobile network operator model. The company plans to leverage its core network with access to AT&T's nationwide network and SpaceX's D2D service to serve its Boost Mobile customers.

As a condition of approval, the FCC required EchoStar to establish a $2.4 billion trust fund within 30 days of consummating the transaction to address contractual obligations to infrastructure partners related to network construction and operations.

The commission also granted SpaceX an extension to consummate the second step of the transaction through November 30, 2027, waiving standard 180-day consummation requirements.