SpaceX has agreed to purchase wireless spectrum licenses from EchoStar in a $17 billion transaction, a deal that will give Elon Musk's company control over airwaves critical to scaling its Starlink direct-to-cell satellite service and intensifying competition with established U.S. carriers.
The agreement, announced Monday, will allow SpaceX to operate Starlink services on frequencies it owns, instead of relying on leased spectrum from companies such as T-Mobile. The transaction is split evenly between $8.5 billion in cash and $8.5 billion in stock, and also includes SpaceX covering about $2 billion in EchoStar's interest payments through late 2027.
Gwynne Shotwell, president and chief operating officer of SpaceX, said the deal would help the company "end mobile dead zones around the world." She added, "With exclusive spectrum, SpaceX will develop next-generation Starlink Direct to Cell satellites, which will have a step change in performance and enable us to enhance coverage for customers wherever they are in the world."
EchoStar confirmed that its Boost Mobile subscribers will be able to access Starlink's direct-to-cell service, extending coverage to areas underserved by conventional towers. EchoStar will continue operating its Dish TV, Sling streaming service, Hughes internet and Boost Mobile brand following the sale.
Shares of EchoStar jumped 19% in early trading after the deal, while AT&T and T-Mobile dropped more than 3% and Verizon fell over 2%. Analysts cited concerns that SpaceX's push into mobile connectivity could erode market share from traditional carriers.
The spectrum licenses - including AWS-4 and H-block bands - are viewed as essential for SpaceX's plan to deploy thousands of upgraded, laser-connected satellites. The company has already launched about 8,000 Starlink satellites, 600 of which serve as "cell towers in space" for its direct-to-cell network.
Central to the effort is Starship, SpaceX's next-generation rocket designed to carry larger satellites into orbit. The vehicle is nearing its first operational Starlink missions, expected in early 2026, after a series of complex test flights.
The deal comes as the Federal Communications Commission had raised concerns about EchoStar's use of spectrum and its obligations to build out 5G services. An FCC spokesperson said the "deals that EchoStar reached with AT&T and Starlink hold the potential to supercharge competition, extend innovative new services to millions of Americans, and boost U.S. leadership in next-gen connectivity."
EchoStar sold a separate package of licenses to AT&T for $23 billion in August, part of a broader reshaping of the U.S. wireless landscape. President Donald Trump previously urged the FCC and EchoStar to resolve spectrum disputes to accelerate next-generation connectivity.
