SpaceX buys EchoStar’s spectrum licences in $17bn deal

BY Fraser Tennant

US space technology company SpaceX is to acquire wireless spectrum licences from mobile satellite communication services provider EchoStar in a transaction valued at approximately $17bn.

Under the terms of the definitive agreement, the licences will be sold for up to $8.5bn in cash and up to $8.5bn in SpaceX stock. The agreement also provides for SpaceX to fund an aggregate of approximately $2bn of cash interest payments payable on EchoStar debt through November 2027.

The acquisition of EchoStar’s AWS-4 and H-block licences is seen by SpaceX as crucial to the expansion of its Starlink satellite network’s 5G connectivity business.

In connection with the transaction, SpaceX and EchoStar will enter into a long-term commercial agreement, which will enable EchoStar’s Boost Mobile subscribers – through its cloud-native 5G core – to access SpaceX’s next generation Starlink ‘Direct to Cell’ service.

“For the past decade, we have acquired spectrum and facilitated worldwide 5G spectrum standards and devices, all with the foresight that direct-to-cell connectivity via satellite would change the way the world communicates,” said Hamid Akhavan, president and chief executive of EchoStar. “The combination of AWS-4 and H-block spectrum from EchoStar with the rocket launch and satellite capabilities from SpaceX allows us to realise the direct-to-cell vision in a more innovative, economical and faster way for consumers worldwide.”

The proceeds of this transaction will be used for, among other things, retiring certain debt obligations and funding EchoStar’s continued operations and growth initiatives.

The deal comes months after the Federal Communications Commission questioned EchoStar’s use of mobile-satellite service spectrum and raised concerns about whether it was meeting its obligations to deploy 5G in the US. EchoStar anticipates that the transaction with SpaceX and its previous deal with AT&T will resolve the FCC’s inquiries.

“This transaction with EchoStar will advance our mission to end mobile dead zones around the world,” said Gwynne Shotwell, president, chief executive and chief operating officer of SpaceX. “SpaceX's first generation Starlink satellites with Direct to Cell capabilities have already connected millions of people when they needed it most – during natural disasters so they could contact emergency responders and loved ones – or when they would have previously been off the grid.”

The closure of the proposed transaction is expected to occur after all required regulatory approvals are received and other closing conditions are satisfied.

Mr Akhavan concluded: “This transaction with SpaceX continues our legacy of putting the customer first.”

News: SpaceX buys wireless spectrum from EchoStar in $17 billion deal

AT&T buys spectrum licences from EchoStar for $23bn

BY Fraser Tennant

In a deal designed to boost its 5G networks, US multinational telecommunications holding company AT&T is to acquire certain wireless spectrum licences from mobile satellite communication services provider EchoStar for $23bn.

The licence sale to AT&T will enable rapid deployment of the purchased spectrum to US consumers across the country – with AT&T having the option to lease the spectrum, pending the closing of the spectrum sale – an arrangement that benefits both AT&T and Boost Mobile subscribers.

“This acquisition bolsters and expands our spectrum portfolio while enhancing customers’ 5G wireless and home internet experience in even more markets,” said John Stankey, chairman and chief executive of AT&T. “We are adding fuel to our winning strategy of investing in valuable wireless and broadband assets to become America’s best connectivity provider.”

Facing scrutiny from government regulators, in June 2025, President Trump requested that EchoStar and Brendan Carr, chair of the Federal Communications Commission (FCC), reach an amicable deal over the fate of the company’s wireless spectrum licences.

To that end, the spectrum sale to AT&T and hybrid mobile network operator (MNO) agreement – providing wireless service under the Boost Mobile brand – are critical steps toward resolving the FCC’s spectrum utilisation concerns.

Through Boost Mobile’s hybrid MNO infrastructure, subscribers will continue to receive service from Boost Mobile’s cloud-native 5G core connected to AT&T’s leading nationwide network. While primary connectivity will be provided by AT&T’s towers, Boost Mobile subscribers will continue to have access to the T-Mobile network.

“This transaction puts our business on a solid financial path, further facilitating EchoStar’s long-term success, and enhancing our ability to innovate and compete as a hybrid network operator,” said Hamid Akhavan, chief executive and president of EchoStar. “The proceeds of this transaction will be used for, among other things, retiring certain debt obligations and funding EchoStar’s continued operations and growth initiatives.”

The transaction is expected to close in mid-2026, subject to certain closing conditions, including regulatory approvals.

Mr Akhavan concluded: “We continue to evaluate strategic opportunities for our remaining spectrum portfolio in partnership with the US government and wireless industry participants."

News: EchoStar to sell wireless spectrum licenses to AT&T in $23 billion deal

UK defence sector funding hits “all-time high”, reveals new report

BY Fraser Tennant

Investments in the UK defence and national security sectors surged in 2024, with both government funding and private capital investments increasing, according to a new report by Heligan Group

In its ‘Investing in Defence 2025’ report, Heligan Group reveals that investment funding – primarily driven by venture capital for European defence, security and resilience start-ups – reached an all-time high of $5.2bn last year, nearly a fivefold increase over six years.

This boom, states the report, has been driven by geopolitical tensions and conflict, primarily the Russian war against Ukraine, which has driven greater demand for defence technology – increasing by 64 percent between 2014 and 2024.

The UK is also pursuing innovation programmes via the National Security Strategic Investment Fund and accelerators such as the Defence and Security Accelerator, with innovation centrally coordinated by the newly established UK Defence Innovation organisation.

“Public-private partnerships fundamentally reduce investment risk for private investors and provide long-term growth prospects,” said Matt Croker, a partner at Heligan Group. “PPPs also foster innovation and build the critical links and understanding between those with the need and those with the solutions.

“A new UK-European Union (EU) post-Brexit agreement also paves the way for UK-based firms’ access to the EU’s new Security Action for Europe – a €150b fund providing loans for defence projects,” he continued. “Subsequently, I believe that the long-term stability and resilience of investments in defence are improved due to a sector strongly influenced by geopolitical necessity and one that is financially backed with governmental support.”

The report also notes that alongside private equity and corporate investors. mainstream investors are playing a significant role, with a greater focus on dual-use technologies such as artificial intelligence, cyber security, autonomous systems and quantum, despite historically having shied away from such investments.

Heligan Group also recognises a tangible realignment of ethical and environmental, social and governance lines, with many seeing a momentum shift, with attitudes to defence and security investing now framed as essential for societal security and stability in the context of war in Eastern Europe.

Mr Crocker concluded: “With heightened threat levels, investors would appear to be loosening restrictions and recognising defence as a critical and necessary aspect of the overall investment landscape, as well as a potentially untapped and lucrative addition to their investment portfolios.”

Report: Investing in Defence 2025

Telecom deal value leaps in Q1 2024 – report

BY Richard Summerfield

Amid a period of upheaval in the telecommunications sector, companies are turning to M&A to drive their business forward, according to analysis by Bain & Company. Integrated telcos are becoming disaggregated and narrowly focused business models are emerging, altering the telecommunications landscape.

With this shift, M&A deal value in the telecommunications space spiked in the first quarter of 2024, as some telcos increased scale and others expanded in adjacent sectors such as finance and insurance, according to Bain.

Indeed, deal value increased significantly from around $2bn in Q1 2023 to almost $21bn in Q1 2024. Though the figure is down from $35bn in Q4 2023, a single deal - Telecom Italia’s $23.3bn agreement to sell its fixed network business to KKR - accounted for two-thirds of that quarter’s value. By comparison, the largest announced transaction in Q1 2024 was a scale deal which saw Swisscom agree to acquire Vodafone Italia for $8.7bn and merge it with Swisscom’s Italian subsidiary Fastweb.

Europe has been the focal point of many industry transactions in recent years, driven by in-country scale deals and infrastructure divestments. Scale deals accounted for slightly more than half of global deal value in the first quarter of the year, a notable shift from each of the past two years, when this category made up less than a quarter of deal value. Infrastructure divestments dominated telecom M&A from 2019 to 2022, but high interest rates and other macroeconomic challenges have reversed that trend of late.

According to Bain, factors such as fibre network consolidation will likely spur deals going forward. Brazil and the US are some of the largest markets where such consolidation is expected to occur. Likewise, enterprise services and other higher-growth segments are set to attract deals, with private equity firms expected to be among the most active dealmakers.

News: Telecom M&A: Here Are the Latest Deal Trends Worldwide

Tech investment in Asia rapid in 2022, reveals new report

BY Fraser Tennant 

Tech investment has grown to represent the majority of private capital activity in Asia, even amid the global correction in 2022, according to a new report by the Global Private Capital Association (GPCA).

In its ‘2023 Trends in Global Tech’ data report – which examines some of the contours of the changing tech investment landscape with a focus on emerging trends and cross-border insights – the GPCA states that investment in tech across China, India and Southeast Asia has steadily expanded since 2017.   

“While Asia was not immune to global tech and venture corrections in 2022, tech remained a dominant theme for private capital investors in the region,” said Ethan Koh, Asia Research Director at GPCA and co-author of the report. “Despite a pullback from 2021 highs, tech investment was on par with pre-pandemic levels at $146bn in 2022.

Of all the investment activity in Asia, the GPCA notes that it is Chinese investment in deep tech that received the lion’s share of interest from investors in 2022, accounting for 71 percent of deal value (up from 40 percent in 2020).

In comparison, investment in China in other tech areas was much less prolific, with enterprise software & IT services receiving 16 percent of capital investment and consumer tech 8 percent.    

Additional key findings in the report include: (i) Western and Chinese money is moving to Southeast Asia; (ii) over half of 2022 deals include US or European investors; (iii) Chinese investors now participate in one quarter of Southeast Asian tech deals; (iv) consumer tech and FinTech dominate investment landscape in Southeast Asia; and (v) deep tech is benefitting from regulatory shifts and growing investment from local and international investors alike.

However, according to Rebecca Xu, co-founder and managing director of Asia Alternatives and a contributor to the report, despite a decisive shift toward deep tech, many investment opportunities in this key area remain untapped.

“Deep tech is underdeveloped, like consumer tech was 15 years ago,” said Ms Xu. “There are not many fund managers who have established a proven track record in deep tech. With plenty of room for development, finding professionals who have experience and specialised expertise involving science and technology is more essential than ever.”

Report: ‘2023 Trends in Global Tech’