SpaceX Acquires $17B Spectrum from EchoStar to Expand Starlink Direct-to-Phone Service

SpaceX Purchases $17 Billion Spectrum from EchoStar to Propel Starlink’s Mobile Internet Ambitions

SpaceX has entered into a $17 billion agreement to acquire 50MHz of wireless spectrum and Mobile Satellite Service licenses from EchoStar. The deal, comprising $8.5 billion in cash and $8.5 billion in SpaceX stock, includes EchoStar’s AWS-4 and H-block spectrum licenses, which will be integral to expanding Starlink’s satellite internet capabilities.

The acquisition enables SpaceX to develop and deploy its “Direct to Cell” constellation, aiming to deliver broadband-speed internet directly to mobile phones globally. Notably, $2 billion of the cash payment will service debt obligations held by EchoStar.

Advancing Starlink’s Direct-to-Phone Service

Following Federal Communications Commission (FCC) approval last year to offer Starlink’s direct-to-phone satellite internet service in partnership with T-Mobile, this spectrum purchase provides SpaceX with greater operational independence. It reduces the company’s reliance on traditional network providers and facilitates the implementation of “optimized 5G protocols” once the next generation of Starlink satellites is deployed.

Additionally, the agreement extends access to Starlink’s direct-to-phone service to customers of EchoStar’s Boost Mobile, broadening the potential user base for SpaceX’s satellite broadband.

Regulatory Pressure and Market Context

The transaction follows significant FCC scrutiny regarding EchoStar’s spectrum utilization. The inquiry was initiated in May 2025 after SpaceX publicly encouraged regulatory review. Bloomberg reported that former President Trump personally urged EchoStar CEO Charlie Ergen to divest the spectrum licenses. This pressure coincided with EchoStar’s sale of $23 billion in spectrum licenses to AT&T on August 26.

EchoStar stated that the combined spectrum sales to SpaceX and AT&T are expected to resolve the FCC’s investigation into its spectrum holdings.

Implications for Satellite Internet Landscape

This strategic spectrum acquisition positions SpaceX to accelerate the rollout of its direct-to-phone satellite internet service, potentially reshaping mobile connectivity by integrating satellite and terrestrial networks. The deal underscores growing regulatory influence on spectrum management and highlights competitive dynamics between satellite and traditional wireless operators.