Intensifying competition with America’s biggest wireless carriers, the spectrum grab by SpaceX could supercharge Starlink’s 5G push and expand direct-to-cell services, as per reports.
Elon Musk’s SpaceX is set to purchase wireless spectrum licences from EchoStar for about $17 billion, according to a report by Reuters. This move aims to strengthen its Starlink satellite network and pave the way for next-generation 5G services.
The agreement includes access for EchoStar’s Boost Mobile subscribers to Starlink’s direct-to-cell service. This will extend satellite connectivity to underserved regions and tackle mobile coverage gaps.
SpaceX will pay roughly half the amount in cash and the rest in stock, while also assuming around $2 billion in EchoStar’s debt interest until 2027. EchoStar, meanwhile, will continue to operate Dish TV, Sling TV, HughesNet internet, and its Boost Mobile brand.
The spectrum will allow SpaceX to build and deploy advanced satellites linked by lasers. According to the company, the new capacity could expand network throughput by more than 100 times.
President and COO Gwynne Shotwell said exclusive spectrum will enable the launch of ‘next-generation Starlink Direct to Cell satellites’ that can eliminate dead zones worldwide.
News of the deal sent EchoStar shares surging nearly 19% in early trading. In contrast, major US carriers, including AT&T, T-Mobile and Verizon, all fell between 2% and 3%.
The announcement comes amid a surge in mobile data consumption in the United States. The industry body CTIA reported that Americans used a record 132 trillion megabytes in 2024, up 35% from the previous year.
SpaceX has launched more than 8,000 Starlink satellites since 2020, with about 600 “cell towers in space” added in 2024 alone. The company is preparing to use its Starship rocket for larger, more powerful satellites, with operational missions expected next year.
The deal follows Federal Communications Commission scrutiny of EchoStar’s spectrum use. The FCC welcomed the agreement, saying it could drive competition, expand coverage, and reinforce US leadership in advanced connectivity.
