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SpaceX acquires EchoStar's wireless spectrum in $17 Billion agreement

SpaceX secures EchoStar's wireless spectrum in a $17 billion deal, paving the way for Starlink's direct-to-cell expansion.
posted by Anisa Nandy
Monday 9/8/2025 at 2:20PM EDT
  • NEW YORK, NEW YORK - NOVEMBER 29: C.E.O. of Tesla, Chief Engineer of SpaceX and C.T.O. of X Elon Musk speaks during the New York Times annual DealBook summit on November 29, 2023 in New York City. Andrew Ross Sorkin returns for the NYT summit for a day of interviews with Vice President Kamala Harris, President of Taiwan Tsai Ing-Wen, C.E.O. of Tesla, Chief Engineer of SpaceX and C.T.O. of X Elon Musk, former Speaker of the U.S. House of Representatives Rep. Kevin McCarthy (R-CA) and leaders in business, politics and culture. (Photo by Michael M. Santiago/Getty Images)
    NEW YORK, NEW YORK - NOVEMBER 29: C.E.O. of Tesla, Chief Engineer of SpaceX and C.T.O. of X Elon Musk speaks during the New York Times annual DealBook summit on November 29, 2023 in New York City. Andrew Ross Sorkin returns for the NYT summit for a day of interviews with Vice President Kamala Harris, President of Taiwan Tsai Ing-Wen, C.E.O. of Tesla, Chief Engineer of SpaceX and C.T.O. of X Elon Musk, former Speaker of the U.S. House of Representatives Rep. Kevin McCarthy (R-CA) and leaders in business, politics and culture. (Photo by Michael M. Santiago/Getty Images)

    SpaceX has shared news about a landmark agreement with EchoStar, worth almost $17 billion. This deal is a big step in making its Starlink satellite network bigger. Announced on Monday, the agreement includes SpaceX acquiring wireless spectrum licenses to accelerate the company's entry into the 5G connectivity market.

    Under this deal, customers of EchoStar's Boost Mobile will get to use Starlink's direct-to-cell service. This aims to bring satellite-powered coverage to places that now lack good connections.

    SpaceX wins spectrum rights, boosting Starlink plans and EchoStar shares

    SpaceX has secured exclusive spectrum rights, setting the stage for a major leap in its space tech. This change will let the firm launch new, high-tech Starlink satellites. These are made to advance mobile network power by more than a hundred times. President and COO Gwynne Shotwell said the deal would help get rid of mobile dead zones all over the world with new "direct-to-cell" satellites.

    As soon as the news came out, it made a big wave in the market, making EchoStar shares go up by 19%. Big U.S. phone firms such as AT&T, T-Mobile, and Verizon all slipped in early trading. This push comes as mobile data consumption keeps getting higher. Americans used a record 132 trillion megabytes in 2024, said CTIA. 

    Since 2020, SpaceX has sent up more than 8,000 Starlink satellites, 600 of those just this year alone, for its expanding direct-to-cell network. The big Starship rocket is expected to take on its first Starlink tasks next year.

    EchoStar deals with SpaceX, AT&T to ease FCC concerns

    EchoStar's new deals with SpaceX and AT&T are a key shift in its ongoing standoff with U.S. regulators. The Federal Communications Commission (FCC) had been unsure about how EchoStar managed its mobile-satellite space and its aim to bring 5G all over the nation.

    Now, with new ties set up, the firm hopes to clear up those concerns. Regulators are showing hope, hinting that these deals might lead to better competition, grow new-age links, and let many Americans try new services. This could change the telecom field a lot.

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    TOPICS: SpaceX


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