Starlink bought the frequency spectrum of cellular operator EchoStar for $17 billion

SpaceX has signed the largest deal ever, worth $17 billion, buying wireless spectrum from EchoStar to develop its Starlink satellite network. As Reuters notes, this purchase is of strategic importance, as it opens a direct path for Starlink to the next-generation mobile communications market.

In addition to the spectrum purchase, the parties have agreed on a partnership: subscribers of the mobile operator Boost Mobile (a subsidiary of EchoStar) will receive access to Starlink Direct to Cell technology. This system has recently begun to be tested in Ukraine – the first operator to join the program was Kyivstar.

The availability of the spectrum will allow SpaceX to begin the creation and deployment of modernized satellites equipped with laser communication channels. According to the company, this will increase the network’s bandwidth by more than 100 times.

SpaceX President and COO Gwen Shotwell emphasized that the deal will allow the company to “end mobile dead zones around the world.” According to her, ownership of exclusive spectrum will pave the way for the development of a new generation of Starlink Direct to Cell satellites, which will provide a significant increase in performance and significantly improve coverage even in hard-to-reach regions.

The deal took place against the backdrop of close attention from the US Federal Communications Commission (FCC). Previously, the regulator expressed doubts about how effectively EchoStar is using the satellite mobile spectrum allocated to it. In particular, the commission had questions about whether the company is fulfilling its obligations to introduce 5G in the United States.

EchoStar expects that the new deal with SpaceX, as well as a previously concluded partnership with the operator AT&T, will help to alleviate the regulator’s concerns. An FCC spokesman said the deals “could increase competition, expand access to innovative services for millions of Americans, and strengthen the United States’ leadership in next-generation connectivity.”

As previously noted, the EchoStar spectrum is key to SpaceX’s plans, allowing it to not only expand Starlink’s coverage area, but also increase the number of users the network can serve simultaneously. This is especially important for maintaining consistent quality of satellite internet service in remote areas where alternative solutions remain limited or unavailable.