Strategic Acquisition of Spectrum
In September 2025, SpaceX finalized the purchase of spectrum licenses from EchoStar, which include AWS-4 and H-block spectrum. This acquisition, split evenly between $8.5 billion in cash and $8.5 billion in SpaceX stock, also involves covering approximately $2 billion in EchoStar's debt interest payments through 2027. The deal is expected to resolve regulatory concerns from the Federal Communications Commission (FCC) regarding EchoStar's underutilization of its mobile-satellite service spectrum and its obligations to deploy 5G services. Additionally, a commercial partnership has been established, allowing EchoStar's Boost Mobile users to access SpaceX's upcoming Starlink Direct to Cell service.
Direct-to-Cell Service Expansion
SpaceX is actively developing its Direct-to-Cell (D2C) service, which enables smartphones to connect directly to Starlink satellites without the need for traditional cell towers. This technology is particularly beneficial for users in remote or underserved areas, eliminating mobile dead zones. The service is currently in beta testing in regions including the United States, Australia, and Switzerland. Over 40 smartphone models are compatible with this service, including recent iPhone, Samsung Galaxy, Google Pixel, and Motorola devices.
Future Prospects
Looking ahead, Elon Musk has hinted at the possibility of Starlink evolving into a global mobile carrier, providing both satellite and terrestrial services. This vision would require partnerships with Mobile Virtual Network Operators (MVNOs) and further advancements in satellite technology. The integration of Starlink into the 5G ecosystem positions SpaceX to play a pivotal role in the future of global connectivity.