EchoStar announced on October 3rd that it has fulfilled the regulatory requirements needed to retain its rights to the global S-band spectrum, which it is selling to SpaceX in a transaction valued at over $17 billion. According to the U.S.-based operator, the Lyra-4 satellite, launched by Rocket Lab in June, has operated successfully in low Earth orbit for a minimum of 90 days. This fulfills the “Bringing Back Into Use” (BBIU) process overseen by the International Telecommunication Union (ITU), the United Nations agency responsible for governing global spectrum rights.
“Completing the BBIU process means all other operators in overlapping frequencies must coordinate with EchoStar under Siron-1,” the company stated, referencing its regulatory filing for 2 gigahertz mobile satellite spectrum rights. SpaceX intends to utilize this spectrum, along with cellular frequencies from terrestrial partners such as T-Mobile in the United States, to enable a 20-fold increase in throughput for its direct-to-device (D2D) services.
Last month, SpaceX sought permission to deploy up to 15,000 upgraded D2D satellites as part of its Starlink broadband constellation to take advantage of the spectrum, with tests slated to begin as soon as the end of next year. There are currently more than 650 Starlink satellites in orbit supporting early D2D capabilities, limited to text messaging, emergency alerts and certain apps across the United States, New Zealand and Japan. The company plans to pay EchoStar $17 billion via a mix of SpaceX stock and cash for its so-called AWS-4 and H-block spectrum licenses, under a deal they announced Sept. 8 that remains subject to approval from the U.S. Federal Communications Commission. SpaceX would also cover $2 billion in cash interest payments on EchoStar debt.
EchoStar hailed its BBIU milestone as “a critical step in powering next-generation direct-to-device (D2D) services, particularly in rural and regional areas across the globe.”
It has been a complex journey for the geostationary broadband operator, which is now pursuing what CEO Hamid Akhavan calls “asset-light growth” after a “forced pivot” under FCC scrutiny into whether its spectrum was being underused, following complaints from SpaceX and others. The first two of three nanosatellites EchoStar ordered from Tyvak Nano-Satellite Systems (now part of Lockheed Martin) to initially secure the S-band rights in 2021 failed because of propulsion issues. The third successfully reached orbit later that year, just in time to meet the ITU’s initial “Bringing Into Use” (BIU) requirement. Operators must complete BBIU to restore spectrum rights that have lapsed after initial use.
Lyra-4 is one of 28 S-band satellites EchoStar ordered in 2023 from Astro Digital for a planned constellation targeting monitoring and tracking markets. At least two other Lyra satellites have also been launched. In August, EchoStar contracted MDA Space for the first 100 satellites of what was to be a $5 billion S-band constellation for mass-market D2D connectivity. But that plan was shelved a little more than a month later after the SpaceX deal was announced.
EchoStar first embarked on its international S-band strategy in 2013 after acquiring Solaris, an Irish company struggling to commercialize spectrum rights over Europe. In 2019, it bought Helios Wire, a Canadian startup developing a satellite network for connecting Internet of Things (IoT) devices. That deal included the ITU filing for global S-band mobile satellite services that Helios made via its Australian Sirion Global subsidiary, which EchoStar rebranded as EchoStar Global Australia.