SpaceX Buys EchoStar Spectrum in $17 Billion Deal to Expand Starlink’s 5G Reach

SpaceX announced Monday that it will purchase wireless spectrum licenses from EchoStar for about $17 billion, a move designed to accelerate Starlink’s expansion into the 5G mobile connectivity business. The deal also allows EchoStar’s Boost Mobile subscribers to access Starlink’s direct-to-cell satellite service, extending coverage to underserved regions.

The acquisition gives SpaceX exclusive rights to critical mid-band spectrum, enabling it to build upgraded, laser-linked Starlink satellites that could expand network capacity by over 100 times. “With exclusive spectrum, SpaceX will develop next-generation Starlink Direct to Cell satellites… to end mobile dead zones around the world,” said SpaceX President Gwynne Shotwell.

The deal boosted EchoStar’s shares by 19%, while U.S. carriers AT&T, T-Mobile and Verizon fell 2–3% amid investor concerns over heightened competition. Americans’ mobile data usage surged 35% in 2024 to a record 132 trillion MB, underscoring the need for expanded capacity.

Since 2020, SpaceX has launched more than 8,000 Starlink satellites, with about 600 “cell towers in space” deployed in 2024 alone for direct-to-cell services. Its giant Starship rocket, now in advanced testing, will play a key role in launching the next generation of larger satellites, with operational missions expected in 2026.

The FCC, which had questioned EchoStar’s spectrum obligations, welcomed the SpaceX deal, calling it an opportunity to “supercharge competition” and extend connectivity. EchoStar recently sold $23 billion in spectrum licenses to AT&T, and the SpaceX transaction is expected to resolve regulatory inquiries.

The purchase structure includes $8.5 billion in cash, $8.5 billion in SpaceX stock, and $2 billion in debt interest coverage. EchoStar will continue to operate its Dish TV, Sling, Hughes internet service and Boost Mobile brands.

The deal marks a major win for Elon Musk’s push to control spectrum for Starlink, shifting from leasing agreements with carriers like T-Mobile to operating on frequencies SpaceX owns outright.