Elon Musk
By Kimberly Kalusi
SpaceX has announced a major $17 billion agreement to purchase wireless spectrum licenses from EchoStar, a move aimed at boosting its Starlink satellite network and building a global 5G service.
The deal will also see EchoStar’s Boost Mobile subscribers gain access to Starlink’s direct-to-cell service, helping connect areas that currently lack mobile coverage.
SpaceX President and COO Gwynne Shotwell said the agreement will allow the company to eliminate “mobile dead zones” worldwide. She explained that with exclusive spectrum rights, SpaceX can roll out a new generation of Starlink satellites equipped for direct-to-cell services, offering far better performance and wider coverage.
News of the deal lifted EchoStar shares by 19% in early U.S. trading, while shares of major U.S. carriers including AT&T, T-Mobile and Verizon slipped by between 2% and 3%.
The expansion comes as mobile data use continues to soar. According to the industry group CTIA, Americans consumed a record 132 trillion megabytes of data in 2024, a 35% jump from the previous year.
Since 2020, SpaceX has launched more than 8,000 Starlink satellites into low-Earth orbit. Around 600 of these, described by the company as “cell towers in space,” have been launched since January 2024 to support its direct-to-cell network.
Key to the rollout of larger, more advanced satellites will be Starship, SpaceX’s powerful next-generation rocket. After years of testing, the rocket is edging closer to its first operational Starlink missions, expected in early 2026.
