SpaceX Acquires $17B Wireless Spectrum from EchoStar for Starlink Expansion

Elon Musk's SpaceX has reached a $17 billion agreement to acquire spectrum licenses from EchoStar, consisting of $8.5 billion in cash and $8.5 billion in SpaceX stock, to enhance its Starlink satellite network with direct-to-phone 5G capabilities. This deal enables SpaceX to develop its next-generation Starlink Direct to Cell service, providing broadband-speed internet access directly to mobile phones worldwide, and allows EchoStar's Boost Mobile subscribers to access Starlink's service under a long-term commercial agreement. The transaction follows an FCC inquiry into EchoStar's use of the spectrum, which, alongside a separate $23 billion sale of spectrum licenses to AT&T, EchoStar believes will resolve regulatory concerns. SpaceX's acquisition expands its freedom to operate without heavy reliance on other network providers and supports the deployment of optimized 5G protocols with upcoming satellites. EchoStar plans to use proceeds from the sale partly to pay down debt, and the deal has positively impacted EchoStar's stock value. President Trump reportedly urged EchoStar's CEO to sell the spectrum licenses amid the FCC investigation, highlighting the regulatory context of the sale.