SpaceX has agreed to buy wireless spectrum licenses from EchoStar in a deal worth about $17 billion, giving Elon Musk’s company control of radio frequencies that will allow Starlink satellites to connect directly to mobile phones.
The purchase combines cash, stock, and debt coverage and is set to expand Starlink’s internet service from homes and businesses to everyday handsets. The move also resolves regulatory pressure on EchoStar, which faced the risk of losing the spectrum for not deploying its 5G network quickly enough.
The agreement includes up to $8.5 billion in cash, up to $8.5 billion in SpaceX stock, and coverage of $2 billion in EchoStar’s debt interest payments through 2027. EchoStar, which owns Dish Network, has been struggling with debt and slow progress in building its wireless network. By selling, the company avoids penalties from the Federal Communications Commission (FCC), while SpaceX gains access to spectrum it plans to use actively.
The licenses cover the AWS-4 and H-block bands near 2 gigahertz, frequencies that travel long distances and can pass through walls. That makes them well suited for connecting satellites to ground devices like smartphones. With these bands, SpaceX can expand its service beyond fixed satellite internet and offer direct-to-device connections.
Starlink already provides internet from thousands of low-Earth orbit satellites. The new spectrum strengthens ongoing tests with T-Mobile, where satellites act like cell towers to connect regular phones without extra hardware. SpaceX says this will improve coverage in remote areas such as mountains, oceans, and rural regions.
EchoStar faced years of pressure from regulators to build out its 5G network using these licenses. The FCC had raised the possibility of revoking them if deployment targets were not met. Reports say former President Donald Trump encouraged a deal to settle the matter. By transferring the spectrum to SpaceX, regulators can expect the frequencies to be put to use quickly.
For astronomy, the deal brings both opportunities and concerns. Starlink satellites already interfere with telescope images, leaving streaks across the night sky. Expanding the constellation to provide phone service could worsen this. Astronomers also worry about radio interference, though certain science bands are protected. At the same time, reliable internet from space could help remote observatories in places like Hawaii and Chile share data more easily.
Radio astronomers often work in protected frequencies, such as the hydrogen line at 1.42 GHz, but nearby commercial bands can still create problems if not carefully managed. Scientists are pushing for coordination to limit the effect of satellite networks on research.
If approved by the FCC, the purchase cements SpaceX’s lead in satellite broadband. Amazon’s Kuiper project remains in early stages with fewer satellites launched. The deal shows how space companies are increasingly tied to the telecom industry, with networks in orbit expected to support not only consumers but also future missions to the Moon and Mars.
Regulators are expected to make a final decision soon. If cleared, Starlink’s reach will grow from households to handsets, changing how people stay connected on Earth and potentially beyond.