SpaceX signs $17 billion deal to expand Starlink cell service

On September 8, 2025, U.S. telecommunications company EchoStar announced its plans to sell spectrum licenses to SpaceX for a total of $17 billion. This deal is poised to enhance SpaceX's ability to provide broadband cell service using its Starlink satellite network, specifically targeting mobile connectivity through the recently developed Direct to Cell technology. The agreement entails EchoStar's AWS-4 and H-block spectrum licenses, which will be exchanged for $8.5 billion in cash and an additional $8.5 billion in SpaceX stock. Furthermore, SpaceX will take on approximately $2 billion in interest on EchoStar's debt, covering it until November 2027. The transaction marks a significant milestone in the evolution of mobile communications, aiming to eliminate mobile dead zones worldwide. Gwynn Shotwell, SpaceX's president, expressed enthusiasm about the deal, emphasizing that it would help them fulfill their mission by developing next-generation satellites that would improve global coverage. The Direct to Cell constellation connects to a larger network of over 8,000 satellites that SpaceX has already launched, designed to allow cell phones to connect directly to satellite services for messaging and calls, regardless of terrestrial coverage. These satellites are positioned in lower earth orbits than traditional systems, enhancing the connectivity for mobile devices on the ground. The implications of this agreement could reshape how people access mobile services and communicate, especially in remote areas lacking traditional cell service infrastructure. This technology stands to revolutionize the connectivity landscape, offering solutions where previous methods have failed.