SpaceX Acquires $17 Billion Spectrum Licenses from EchoStar

SpaceX has finalized a significant acquisition of spectrum licenses from US telecommunications operator EchoStar for a total of $17 billion. This strategic move, announced on Monday, aims to enhance the operations of SpaceX’s Starlink network.

Expanding Direct-to-Cell Services

As part of the agreement, EchoStar’s Boost Mobile subscribers will gain access to SpaceX’s direct-to-cell services without requiring additional dedicated terminals. This advancement is expected to broaden the reach of mobile connectivity for customers in areas previously underserved by traditional networks.

SpaceX launched its first direct-to-cell satellites in January 2024. The service allows users to send text messages and receive alerts, as well as access various applications, social networks, and messaging platforms. These offerings are particularly valuable in remote regions where conventional mobile network coverage is limited.

To facilitate these services, SpaceX has partnered with ten telecommunications operators across North and South America, as well as in Australia, Japan, Switzerland, and Ukraine. The company’s commitment to expanding its network is underscored by its assertion that more than 50 percent of the world’s landmass is still without terrestrial mobile services.

Future of Connectivity

According to SpaceX, as it continues to develop and deploy its next-generation Direct-to-Cell constellation, the company remains dedicated to collaborating with mobile network operators globally. Their goal is to deliver comprehensive coverage to as many customers as possible.

The acquisition has had a positive impact on the stock market. During pre-market trading on the New York Stock Exchange, EchoStar shares experienced a notable increase of 22 percent, reaching $82 around 12:00 GMT.

This licensing agreement marks a pivotal step in SpaceX’s mission to revolutionize global communications, bridging gaps in connectivity and expanding access to vital services for millions around the world.