Elon Musk’s SpaceX has finalised a $17 billion deal to acquire wireless spectrum licences from EchoStar and boost its Starlink satellite internet network.
The acquisition includes the AWS-4 and H-block spectrum bands, which are key to SpaceX’s plan to deliver broadband-speed internet directly to ordinary mobile phones worldwide through its direct-to-cell service.
The deal consists of up to $8.5 billion in cash and $8.5 billion in SpaceX stock. Additionally, SpaceX will cover $2 billion in interest payments on EchoStar’s debt through 2027, helping EchoStar manage its heavy debt and regulatory scrutiny from the Federal Communications Commission.
This purchase supports Starlink’s expansion, building on its partnership with T-Mobile, which has begun offering off-grid texting via Starlink satellites. SpaceX plans to use the new spectrum to deploy next-generation satellites with optimised 5G protocols, offering more than 100 times the capacity of earlier models, and substantially improving coverage and performance.
EchoStar, meanwhile, has ended its own ambitions to build a direct-to-device satellite network, cancelling a $1.3 billion satellite contract with MDA Space. The deal also enables EchoStar’s Boost Mobile customers to access Starlink’s new direct-to-cell satellite service.
SpaceX’s spectrum purchase marks a major step in expanding global mobile internet access beyond traditional cellular networks to eliminate coverage dead zones worldwide and fuel competition in U.S. telecom markets.