Elon Musk’s SpaceX has struck a $17 billion deal to acquire wireless spectrum licenses from EchoStar, a move that will accelerate the rollout of its Starlink direct-to-cell satellite network. The agreement marks one of the largest spectrum transactions in U.S. telecom history and is a crucial step for SpaceX’s 5G ambitions.
Under the deal, SpaceX will pay up to $8.5 billion in cash and issue $8.5 billion in stock, while also covering about $2 billion in EchoStar’s debt interest payments until 2027. The purchase gives SpaceX exclusive control of spectrum needed to build and deploy upgraded, laser-connected satellites that it says will expand mobile network capacity by more than 100 times.
Expanding Direct-to-Cell Services
The partnership will also allow EchoStar’s Boost Mobile customers to access Starlink’s direct-to-cell services, extending connectivity to remote areas that lack traditional coverage. SpaceX President and COO Gwynne Shotwell said the spectrum deal will help the company “end mobile dead zones around the world” with next-generation satellites designed to enhance performance and reach.
So far, SpaceX has launched more than 8,000 Starlink satellites since 2020, including 600 direct-to-cell units it calls “cell towers in space.” These satellites orbit closer to Earth than traditional Starlink units and are central to the company’s plan to deliver high-speed connectivity to mobile devices.
Market and Regulatory Impact
News of the acquisition sent EchoStar shares up 19% in early trading, while U.S. wireless carriers such as AT&T, Verizon, and T-Mobile saw declines. The deal comes as wireless data usage continues to surge—Americans consumed a record 132 trillion megabytes of mobile data in 2024, a 35% jump from the previous year.
The Federal Communications Commission (FCC), which had questioned EchoStar’s spectrum use earlier this year, signaled support for the deal, saying it could enhance competition, expand services, and strengthen U.S. leadership in next-generation connectivity.
EchoStar recently sold additional spectrum to AT&T in a $23 billion transaction and will continue to operate its Dish TV, Sling streaming service, Hughes internet, and Boost Mobile brand after the SpaceX deal.
The Road Ahead
With this acquisition, SpaceX secures a vital resource to expand Starlink’s direct-to-cell services on its own frequencies rather than depending on leased spectrum from carriers like T-Mobile. Coupled with its Starship rocket program, expected to enable larger satellite deployments in the near future, the company is positioning itself as a major force in the global 5G and satellite communications race.
