SpaceX acquired wireless spectrum from EchoStar for $17 billion, marking a strategic move to enhance Starlink’s direct-to-phone satellite service. The services will be offered in the US.
SpaceX will acquire 50MHz of wireless spectrum and Mobile Satellite Service spectrum licenses, specifically AWS-4 and H-block spectrum licenses. SpaceX buys the company for a total of 17 billion dollars. Half will be paid in cash, and the remaining $8.5 billion will be given as EchoStar SpaceX stock.
The spectrum purchase gives SpaceX more freedom to operate its “Direct to Cell” constellation without depending heavily on other network providers. The company already received FCC approval last year to offer direct-to-phone Starlink service, with T-Mobile as a provider. The newly bought spectrum make SpaceX less dependant on the services of T-Mobile.
SpaceX claims the new spectrum will enable “optimized 5G protocols” in its direct-to-phone service once the next generation of satellites becomes operational. The deal also grants EchoStar’s Boost Mobile customers access to Starlink’s direct-to-phone service. This acquisition represents a significant step toward ubiquitous mobile connectivity. SpaceX’s direct-to-cell technology promises to provide broadband-speed internet access to mobile phones worldwide, addressing coverage gaps in traditional cellular networks.
European satellite competition emerges
As SpaceX expands its satellite capabilities, Europe is trying to develop its own alternative. The EU agreed on Iris², a €10.6 billion satellite network designed as a Starlink alternative. The project aims to make 290 satellites operational by 2030. Meanwhile, Italy is in advanced negotiations with SpaceX for a €1.5 billion deal to provide secure government telecommunications services, which highlights the growing demand for satellite-based communications infrastructure.