In a major move to expand its Starlink satellite network, Elon Musk’s SpaceX has acquired key spectrum licenses from EchoStar Corp for $17 billion. The deal, which includes $8.5 billion in cash and $8.5 billion in stock, will accelerate the development of Starlink’s direct-to-device service, allowing smartphones to connect directly to satellites without relying on traditional cell towers.
According to Hamid Akhavan, EchoStar’s CEO, the partnership will help them achieve their vision of direct-to-cell connectivity in a more efficient way. SpaceX COO Gwynne Shotwell stated that the acquisition aligns with Starlink’s goal of eliminating mobile dead zones, even in remote areas. The news caused EchoStar’s stock to jump significantly. The acquired spectrum will power Starlink’s “Direct to Cell” service, with EchoStar’s Boost Mobile subscribers being among the first to gain access to the new technology.
