Hassan Khan
Elon Musk’s SpaceX has made its boldest move yet in the race to connect mobile phones directly from space. On Monday, the company confirmed it will spend $17 billion to acquire spectrum rights from EchoStar, a long coveted asset perfect for space to ground communications.
The deal, SpaceX’s largest acquisition to date, could transform the way people connect in remote areas. While SpaceX’s Starlink has already reshaped satellite internet, its mobile service has so far been limited mainly text messages in partnership with T Mobile. With EchoStar’s spectrum, Musk promises a leap forward: full 5G connectivity from space, enabling calls, video chats, and data even from the world’s most isolated locations.
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But there’s a catch. Analysts point out that SpaceX’s direct to cell ambitions rely heavily on Starship, the massive next generation rocket still in development. Unlike the Falcon 9, Starship is designed to carry over 100 tons of payload to orbit enough to handle the larger, more powerful satellites needed to beam signals directly to phones. While recent test flights have shown progress, the rocket’s reliability remains unproven.
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Despite those risks, industry experts say the deal could shift the balance in global telecom. With EchoStar struggling under debt and pressured by regulators, SpaceX secured a one-of-a-kind slice of spectrum. Some analysts even suggest this move could lure Apple away from its Globalstar partnership, opening doors for SpaceX to power iPhone connectivity from space.
For Musk, the $17B Price tag may be less daunting than it looks. SpaceX’s valuation has soared past $400 Billion, and leasing parts of the spectrum to other carriers could bring in billions. Still, the bet is clear: if Starship works, SpaceX won’t just dominate the skies with Starlink broadband it could redefine mobile connectivity worldwide.
