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EchoStar Spectrum Sale and Cook ?4

07:30 27-Aug-25

As a final update, before proceeding to Nvidia earnings tonight, SpaceX resumed progress overnight with its Starship flight 10.  This included launching 8 dummy Starlink satellites, which is a task that could not be accomplished on the 3 prior flights.

A follow up report after the bell claims that T-Mobile and Starlink have each expressed interest in EchoStar's remaining 40 MHz of MSS (mobile satellite service) spectrum in the 2GHz band, despite a recent contract to develop service.  Given that EchoStar referenced the AT&T sale below as merely a step toward resolving regulatory FCC pressure, another sale at the right price seems to make sense.  SpaceX would be best positioned to use the spectrum, and it seems undeterred by recent setbacks.

On 8/26/25 10:00 AM, CrowdWisers Administration wrote:

Trump has sent a letter supposedly removing Fed governor Cook from the FOMC, effective immediately.  Cook has responded by engaging legal counsel, which claims the move is unlawful.  This brings the Fed independence concerns that this service flagged last week to a head and combines them with further concerns about due process in America, which the stock market has ignored up to this point.  No matter which way this goes, it will not ignore a loss of Fed independence or a ruling on the extent of executive powers.

However, EchoStar getting $22.65b for all 50 MHz of its nationwide spectrum in the 600 MHz and 3.45 GHz bands should ultimately prove more interesting to markets.  The deal is expected to close in 1H26 and could be adjusted as low as $18.6b.  This pricing comes in substantially above prior auction prices and translates to between $64.65 and $80 per SATS share.  That in turn shows that AT&T is a believer in concerns about future auction prices.  It's also significant that SpaceX didn't wind up with the high frequency spectrum for the satellite development that this service has referenced for years in MACom analysis, and it supports the value and potential for M&A that I've seen for Lumen's remaining fiber network, which could lead to redemption of its CTDD & CTBB baby bonds.  Finally, all this is another data point in support of inflation fears.

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