Elon Musk’s SpaceX announced Monday it will acquire wireless spectrum licenses from EchoStar for approximately $17 billion, marking a pivotal move to accelerate the rollout of its Starlink direct-to-cell satellite network and expand its footprint in the competitive 5G connectivity space.
The deal includes a strategic partnership enabling Boost Mobile—EchoStar’s prepaid wireless brand—to tap into Starlink’s satellite service, extending coverage to underserved and remote regions. SpaceX said the spectrum acquisition will allow it to deploy upgraded, laser-linked satellites that could boost network capacity by “more than 100 times.”
“With exclusive spectrum, SpaceX will develop next-generation Starlink Direct to Cell satellites… enhancing coverage for customers wherever they are in the world,” said Gwynne Shotwell, SpaceX president and COO.
The announcement sent EchoStar shares soaring 19% in early trading, while major U.S. wireless carriers took a hit: AT&T and T-Mobile fell over 3%, and Verizon dropped more than 2%.
The move comes amid surging wireless demand. Americans consumed a record 132 trillion megabytes of mobile data in 2024, up 35% year-over-year, according to CTIA.
Since 2020, SpaceX has launched over 8,000 Starlink satellites, with roughly 600 “cell towers in space” deployed since January 2024 to support its direct-to-cell initiative. The new satellites orbit closer to Earth, enabling seamless mobile connectivity without traditional cell towers.
The deal also helps resolve regulatory pressure. The FCC had raised concerns about EchoStar’s spectrum usage and 5G deployment obligations. EchoStar said its agreements with AT&T and SpaceX—including a separate $23 billion spectrum sale to AT&T in August—should address the FCC’s inquiries.
“These deals hold the potential to supercharge competition, extend innovative new services to millions of Americans, and boost U.S. leadership in next-gen connectivity,” said an FCC spokesperson.
Under the terms, SpaceX will pay up to $8.5 billion in cash, issue $8.5 billion in stock, and cover $2 billion in EchoStar’s debt interest through 2027. EchoStar will retain its core businesses: Dish TV, Sling, HughesNet, and Boost Mobile.
By owning its spectrum, SpaceX can operate Starlink’s direct-to-cell services independently, reducing reliance on leased frequencies from carriers like T-Mobile and positioning itself as a disruptive force in mobile telecom.