EchoStar's stock surged 5.80% in pre-market trading on Wednesday, marking a significant upward movement in its share price.
The sharp appreciation follows regulatory approval from the U.S. Federal Communications Commission for EchoStar's sale of wireless spectrum to SpaceX and AT&T, a deal valued at over $40 billion. The FCC stated the move would boost connectivity across the United States, particularly in rural and underserved areas.
EchoStar is selling approximately 50 megahertz of spectrum to AT&T for its 5G network for $23 billion and 65 megahertz to SpaceX for $17 billion to enhance Starlink's next-generation device-to-device service. This substantial cash inflow from the spectrum sales is the primary driver behind the stock's sharp pre-market gain.
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