SpaceX's $17 Billion Deal Plunges Musk Deeper into Wireless

Elon Musk's SpaceX is writing its biggest check ever to expand its foothold in the mobile-phone business.

- Drew Fitzgerald & Micah Maidenberg

SpaceX said Monday it would pay $17 billion for the rights to use some of EchoStar's valuable spectrum for cellphone service.

The deal with EchoStar includes $8.5 billion in cash and up to $8.5 billion of SpaceX stock for two chunks of valuable U.S. wireless licenses and related domestic and international rights to beam signals from space. The rocket and satellite-internet company also agreed to pay about $2 billion of cash toward interest payments on EchoStar debt through November 2027.

SpaceX is already a growing home broadband provider through its Starlink business and has dipped into the mobile-phone sector through a U.S. partnership with T-Mobile. However, the new spectrum rights would significantly improve Starlink's ability to connect with cellphones in remote areas beyond the reach of cellphone towers.

With the big three wireless carriers using the wireless licenses at its disposal.

The threat prompted a whirlwind of deal talks with multiple telecom and satellite companies, including T-Mobile and Verizon.