The service is the result of a UK-first partnership with SpaceX, using Starlink's low-Earth orbit satellites to deliver connectivity direct to mobile devices using O2's licensed mobile spectrum transmitted from space. The switch-on also follows recent approval by UK regulator Ofcom of the UK's first licence for satellite-to-smartphone services.
EchoStar is selling its AWS-4 and H-block spectrum licenses for approximately $17 billion to SpaceX, the company announced today. Space X will pay about half of the amount in cash and the remainder in company stock under the agreement, which also provides for SpaceX to fund an aggregate of approximately $2 billion of cash interest payments payable on EchoStar debt through November of 2027.
As with its previous spectrum license deal with AT&T, EchoStar's spectrum license deal with SpaceX will primarily see the company getting boatloads of cash. SpaceX is offering EchoStar a total compensation of $17 billion for its spectrum licenses. Of that, $8.5 billion will be in cash and another $8.5 billion will be in SpaceX shares, which are currently only available privately.
