SpaceX has agreed to acquire a swath of EchoStar spectrum for up to $17 billion, a move positioned to turbocharge Starlink’s direct-to-cell service and reduce the company’s reliance on traditional mobile carriers. The package spans 50MHz across the 1.9GHz to 2.2GHz range and includes U.S. rights to the S-band and PCS H-block, plus EchoStar’s global licenses.
SpaceX says the added airwaves, paired with next-generation Starlink satellites and optimized 5G protocols, could yield roughly 20x more throughput per satellite and more than 100x total network capacity as the constellation scales. EchoStar, meanwhile, will wind down its own direct-to-device plans, and Boost Mobile will gain access to Starlink’s service as part of the deal.
Why these frequencies matter
The portfolio covers 2000–2020MHz (uplink) and 2180–2200MHz (downlink) in the mobile-satellite S-band, plus 1915–1920MHz and 1995–2000MHz in the PCS H-block. Mid-band spectrum in this neighborhood offers a pragmatic blend of reach and capacity, and—crucially—aligns with 3GPP standards for non-terrestrial networks (NTN), easing phone compatibility without requiring exotic handsets.
Until now, Starlink’s early direct-to-cell trials rode on partner spectrum in the 1.91–1.995GHz range to enable basic messaging in coverage dead zones. Users could send texts and photos or reach emergency services, but message delivery sometimes took 20 to 120 seconds. With dedicated spectrum and satellites purpose-built for these bands, SpaceX is aiming for full cellular connectivity that feels closer to terrestrial LTE, including data that supports mainstream apps and, over time, voice and video.
A strategic shift in leverage
Owning large, contiguous blocks changes SpaceX’s bargaining position with mobile network operators (MNOs). Satellite industry analyst Lluc Palerm Serra notes that a homegrown spectrum portfolio frees SpaceX from depending entirely on third-party carriers to light up service, strengthening its hand in roaming and capacity deals. It also leaves the door open to direct-to-consumer offerings in select markets, if regulations and business models align.
The transaction structure underscores the stakes: EchoStar will receive up to $8.5 billion in cash and up to $8.5 billion in SpaceX equity. Research firm MoffettNathanson characterizes the move as EchoStar liquidating most of its spectrum holdings; in parallel, EchoStar canceled a contract with MDA for more than 100 satellites, formally exiting plans to compete head-to-head in direct-to-device.
Implications for users and carriers
In the near term, users should see the service expand beyond text-only functionality as new satellites launch with radios tuned to the acquired bands. SpaceX has already lofted hundreds of direct-to-cell-capable spacecraft, but the company indicates the biggest gains will come with next-gen hardware designed around these frequencies and 5G NTN waveforms.
For carriers, the pitch is straightforward: augment coverage and capacity without building towers in hard-to-serve places. T-Mobile is the first U.S. partner; Boost Mobile’s planned access suggests broader wholesale models. If SpaceX delivers the promised 20x per-satellite throughput uplift, MNOs could offload rural traffic, bolster disaster recovery, and offer differentiated roaming in remote areas, all while preserving spectrum flexibility in dense urban cores.
Regulatory checkpoints and standards
The deal will require Federal Communications Commission approval to transfer licenses and align service rules across MSS and PCS bands. EchoStar has said it expects the agreement to resolve an FCC review of its S-band usage. On the standards front, 3GPP Release 17 established the NTN framework for satellite-to-phone, with Release 18 adding refinements—critical for ensuring interoperability across chipsets, radios, and roaming agreements.
Competitive pressure ramps up
SpaceX’s spectrum haul reshapes the chessboard. AST SpaceMobile, backed by partners such as AT&T and Vodafone, has demonstrated broadband links from space to unmodified phones and is working toward commercial rollout. Lynk Global is operating text services in select countries with regulatory approvals. Apple relies on Globalstar for emergency satellite features on iPhone. Analyst Tim Farrar at TMF Associates argues that SpaceX’s blend of spectrum control, launch cadence, and manufacturing scale makes it harder for rivals to keep pace—especially after EchoStar’s retreat.
What to watch next
Key milestones include FCC consent for the license transfers, launch of satellites expressly built for the new bands, and stepwise expansion from messaging to general app data, then voice and video. Outside the U.S., watch for roaming agreements that leverage EchoStar’s international holdings. The real proof points will be user experience metrics: message delivery in seconds rather than minutes, sustained data rates measured in Mbps on standard smartphones, and seamless handoffs between terrestrial 5G and space-based coverage.
If SpaceX hits its throughput and capacity targets, direct-to-device could move from emergency lifeline to everyday connectivity layer—one that fills dead zones for consumers, unlocks IoT in remote industries, and gives carriers a new lever to balance network economics.