SpaceX has reached a $17 billion agreement to acquire a large block of wireless and Mobile Satellite Service spectrum from EchoStar, in a move designed to accelerate Starlink’s direct-to-phone ambitions and reduce reliance on terrestrial carrier partners. The package combines $8.5 billion in cash and $8.5 billion in SpaceX stock; the cash portion includes $2 billion earmarked for interest payments on EchoStar’s outstanding debt, according to people familiar with the structure.
The deal centers on EchoStar’s AWS-4 and H-block licenses—roughly 50 MHz of valuable mid-band airwaves, plus associated MSS rights—that SpaceX says will enable “optimized 5G protocols” for its Direct to Cell service. Paired with Starlink’s growing second-generation satellites, the spectrum is intended to support text, voice and, eventually, broadband-class data connections directly to standard smartphones.
What SpaceX is actually buying
The AWS-4 band sits around 2 GHz (with uplink near 2000–2020 MHz and downlink near 2180–2200 MHz), historically allocated to MSS but 3GPP-standardized for terrestrial use. The H-block lies adjacent to the U.S. PCS band (uplink 1915–1920 MHz; downlink 1995–2000 MHz), a neighborhood supported by many mass-market phones. Together, these frequencies give SpaceX a rare mix: satellite-originating rights with the potential for broad handset compatibility, especially if device makers enable the relevant bands through firmware or silicon updates.
That compatibility matters. Starlink’s early “direct to cell” demos—with partner carriers—used spectrum handsets already tune to, keeping phones unmodified. Owning its own mid-band portfolio could let SpaceX expand coverage footprints, increase capacity, and control interference management without depending entirely on roaming across partner-licensed airwaves.
Why it changes the direct-to-phone race
3GPP’s Release 17 and evolving Release 18 specifications define non-terrestrial network (NTN) operation for 5G, laying the groundwork for satellites to talk directly to handsets using standardized waveforms. SpaceX is betting that a contiguous, SpaceX-controlled slice of mid-band spectrum will let its constellation run these NTN profiles at scale, boosting link budgets and throughput while keeping latency low thanks to low Earth orbit.
It also sharpens competitive lines. Apple and Globalstar have proven emergency messaging from phones via LEO satellites; AST SpaceMobile has demonstrated 5G voice and data to unmodified devices with carrier partners; Lynk Global has pursued text-first services across multiple markets. SpaceX brings the world’s densest broadband LEO network and a manufacturing cadence that can refresh payloads rapidly, a combination that could push the category beyond emergency use toward everyday coverage extension and rural capacity offload.
Regulatory backdrop and EchoStar’s calculus
The sale follows scrutiny from the Federal Communications Commission over the utilization of EchoStar’s spectrum holdings. EchoStar has signaled that monetizing these licenses—alongside a separate multibillion-dollar transaction with AT&T—addresses the agency’s concerns. Bloomberg has reported that senior political figures pressed for a resolution, underscoring the policy stakes around dormant spectrum and next-generation connectivity.
For SpaceX, owning rather than leasing spectrum simplifies long-term planning and approvals. The company already holds FCC authorization to test and deploy direct-to-cell services and has signed roaming and interoperability agreements with carriers in North America, Asia-Pacific and other regions. Internal spectrum reduces coordination friction and supports unified network design across satellites and ground systems.
What it means for phones, networks and users
On paper, mid-band holdings like AWS-4 and H-block can deliver a sweet spot of range and capacity, especially when paired with massive phased-array antennas in orbit. In practice, performance will hinge on handset support, power control, guard bands near adjacent PCS spectrum, and satellite density overhead. SpaceX says future satellites will host upgraded payloads capable of cellular-class waveforms, opening the door to voice and faster data after an initial text-first rollout.
The implications for coverage are significant. GSMA estimates show a persistent coverage gap affecting hundreds of millions of people and a much larger “usage gap” driven by affordability and infrastructure. Direct-to-phone satellites won’t solve affordability, but they can push signal to places towers rarely reach—maritime, remote roads, disaster zones—while offering carriers a way to extend footprints without building new cell sites.
Boost Mobile and partner alignment
As part of the deal framework, Boost Mobile customers are slated to gain access to Starlink’s direct-to-phone coverage when available. That creates an immediate retail onramp for satellite-to-cell services in the prepaid market and signals how SpaceX may blend wholesale, roaming, and direct relationships to accelerate adoption.
What to watch next
Closing will require regulatory approvals and coordination on interference and safety-of-life protections. Key milestones include handset vendor support for relevant bands, scaling of second-generation Starlink satellites with cellular payloads, and commercial trials that move beyond texts to sustained voice and data at meaningful bitrates.
If SpaceX executes, the company won’t just add another feature to Starlink—it could redefine how mobile networks think about coverage, capacity and resilience, with satellites acting as just another layer in the RAN. For carriers, regulators and consumers, that’s a profound shift driven not by a new app, but by who controls the airwaves above our heads.