SpaceX Acquires $17 Billion Worth of Spectrum Licenses from EchoStar

In a strategic move to bolster its Starlink network operations, Elon Musk’s SpaceX has purchased $17 billion worth of spectrum licenses from US operator EchoStar. The deal, announced on Monday, will enable EchoStar’s Boost Mobile subscribers to access SpaceX’s Starlink direct-to-cell service without the need for an additional dedicated terminal.

This development is part of SpaceX’s plan to expand its direct-to-cell service, which was launched with its first satellites in early 2024. The service allows customers to access text messages, alerts, applications, social networks, and messaging platforms in remote areas. SpaceX has partnered with ten operators across North and South America, Australia, Japan, Switzerland, and Ukraine to offer these services.

According to SpaceX, more than 50% of the world’s landmass remains uncovered by terrestrial services, highlighting the need for alternative connectivity solutions. The company remains committed to working with mobile network operators globally to deliver ubiquitous coverage to as many customers as possible. The next generation of direct-to-cell constellations is being developed and deployed to achieve this goal.

The acquisition has had a positive impact on EchoStar’s stock, with shares rising 22% to $82 in pre-market electronic trading on the New York Stock Exchange. This deal reinforces the significance of collaboration between satellite and mobile network operators in expanding connectivity to underserved areas.

The partnership between SpaceX and EchoStar is expected to enhance the reach and capabilities of Starlink’s direct-to-cell service, providing more options for customers in remote and underserved regions. As the demand for reliable and widespread connectivity continues to grow, such strategic acquisitions and partnerships are likely to play a crucial role in shaping the future of telecommunications.