Elon Musk’s SpaceX secures $17bn deal to expand Starlink’s Direct-to-Cell satellite network
Elon Musk’s SpaceX has secured a whopping $17 billion agreement with EchoStar Corporation to acquire spectrum licences for the expansion of its Starlink satellite internet network and accelerate its highly anticipated directto-device (Direct-to-Cell) service. The transaction covers EchoStar’s AWS-4 and H-block spectrum licenses, with terms split evenly between $8.5 billion in cash and $8.5 billion in equity.
SpaceX will also pay about $2 billion in cash interest on EchoStar’s debt through November 2027. The acquisition gives SpaceX control of critical spectrum needed to launch Starlink’s nextgeneration Direct-to-Cell service, designed to deliver internet connectivity to smartphones without relying on traditional cellular towers.
Under a long-term commercial deal, EchoStar’s Boost Mobile subscribers will be among the first to access the new Starlink mobile service. Chief executive officer of EchoStar, Hamid Akhavan described the deal as the natural progression of a decade-long spectrum strategy. “ Direct – to – cell connectivity via satellite will change the way the world communicates,” Akhavan said.
The agreement comes as EchoStar faces pressure to monetize spectrum holdings and manage debt tied to Dish Network. Alongside a pending $23 billion deal with AT&T, the SpaceX transaction is expected to strengthen EchoStar’s balance sheet while satisfying FCC scrutiny over spectrum deployment.
The deal cements Starlink’s role as a global connectivity leader, especially in rural and hard-to-reach markets for SpaceX while providing financial relief for EchoStar, preserving its businesses like Dish TV, Sling, and Hughes Network Systems for EchoStar.
According to analysts, this deal accelerates efforts to integrate satellite and terrestrial networks, a key focus for 5G expansion and next-gen mobile broadband. With the deal, EchoStar shares have soared to over 23 percent in premarket trading on Monday, reflecting investor optimism.
