Elon Musk’s SpaceX has announced a massive $17 billion acquisition of spectrum licenses from U.S.-based satellite communications firm EchoStar, in a move set to significantly expand the reach and capabilities of its Starlink direct-to-cell satellite network.
The deal, confirmed by both companies on Monday, will allow subscribers of EchoStar’s Boost Mobile service to tap directly into Starlink’s satellite-powered mobile network without requiring additional terminals or special hardware.
This development follows SpaceX’s successful launch of its first direct-to-cell satellites in early 2024, as part of a broader strategy to bring mobile connectivity to previously unreachable locations.
According to SpaceX, its next-generation satellite constellation now offers more than just emergency alerts and text messages. Users in remote and underserved regions can access apps, social media, and full messaging platforms services that were traditionally out of reach due to a lack of ground-based cellular infrastructure.
“More than 50 percent of the Earth’s landmass remains outside the reach of terrestrial mobile networks,” SpaceX stated on its website. “As we continue building and deploying our advanced Direct-to-Cell system, we remain committed to partnering with mobile operators worldwide to expand connectivity for all.”
To date, 10 mobile network operators across North and South America, Australia, Japan, Switzerland, and Ukraine have signed up to integrate with Starlink’s satellite-to-cell service.
This partnership positions SpaceX as a dominant force in global mobile technology, particularly in remote areas where laying traditional infrastructure is economically or logistically impractical.
Market Reaction and Strategic Impact
The news of the acquisition had an immediate impact on investor sentiment. EchoStar’s stock surged by 22 percent in pre-market trading, reaching $82 on the New York Stock Exchange as of Monday morning around 12:00 GMT.
Industry experts see this as a game-changing leap for satellite-based communication, blurring the lines between traditional telecom providers and next-gen satellite internet.
About the Author
