Elon Musk’s SpaceX Secures $17 Billion Deal to Expand Starlink’s Direct-to-Cell Satellite Network

Elon Musk’s SpaceX has sealed a landmark $17 billion agreement with EchoStar Corp. to acquire spectrum licenses that will power the expansion of its Starlink satellite internet network and accelerate its highly anticipated direct-to-device (Direct-to-Cell) service.

Deal Breakdown: Cash + Equity

The transaction covers EchoStar’s AWS-4 and H-block spectrum licenses, with terms split evenly between $8.5 billion in cash and $8.5 billion in equity.
SpaceX will also pay about $2 billion in cash interest on EchoStar’s debt through November 2027.

What It Means for Starlink Users

The acquisition gives SpaceX control of critical spectrum needed to launch Starlink’s next-generation Direct-to-Cell service, designed to deliver internet connectivity to smartphones without relying on traditional cellular towers.

Under a long-term commercial deal, EchoStar’s Boost Mobile subscribers will be among the first to access the new Starlink mobile service.

EchoStar’s Pivot and Industry Impact

Hamid Akhavan, CEO of EchoStar, described the deal as the natural progression of a decade-long spectrum strategy, saying:

“Direct-to-cell connectivity via satellite will change the way the world communicates.”

The agreement comes as EchoStar faces pressure to monetize spectrum holdings and manage debt tied to Dish Network. Alongside a pending $23 billion deal with AT&T, the SpaceX transaction is expected to strengthen EchoStar’s balance sheet while satisfying FCC scrutiny over spectrum deployment.

The Bigger Picture

• For SpaceX: The deal cements Starlink’s role as a global connectivity leader, especially in rural and hard-to-reach markets.

• For EchoStar: It provides financial relief while still preserving its businesses like Dish TV, Sling, and Hughes Network Systems.

• For the Industry: Analysts say this accelerates efforts to integrate satellite and terrestrial networks, a key focus for 5G expansion and next-gen mobile broadband.

News of the deal sent EchoStar shares soaring over 23% in premarket trading on Monday, reflecting investor optimism.