SpaceX has struck a deal with EchoStar to acquire 50 megahertz of exclusive S-band spectrum in the United States along with global mobile satellite service licenses.
The agreement positions the company to roll out its next generation of Starlink Direct to Cell satellites, which will support full 5G connectivity for unmodified mobile devices.
The purchase, disclosed in a company update, hands SpaceX access to bands known as AWS-4 and PCS-H in the U.S. along with international spectrum rights.
Exclusive control of these airwaves, combined with custom-designed hardware, is expected to drive a major leap in performance for Starlink’s growing cellular service.
The company said the new satellites will be capable of delivering up to 100 times the total capacity of the first generation network.
Starlink Direct to Cell began deployment in early 2024 with satellites designed to connect ordinary smartphones without special equipment. Within weeks of launch, SpaceX reported successful texting and later video calling using stock handsets.
Today, with more than 600 satellites in orbit, the first-generation constellation delivers 4G coverage across five continents and serves more than six million users.
The system integrates with terrestrial networks through partnerships with carriers including T-Mobile in the United States, Rogers in Canada, Optus and Telstra in Australia, KDDI in Japan, and several others. The collaboration allows customers to roam onto satellite service in areas where ground-based coverage is absent.
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Operating at roughly 360 kilometers above Earth, Starlink’s Direct to Cell satellites fly lower than competing systems to improve the signal path between devices and orbit.
Each satellite effectively functions as a cell tower in space, linking back into the broader Starlink network through its laser mesh.
SpaceX highlighted the role of Direct to Cell in emergency response, citing recent hurricanes, floods, and wildfires in the United States where more than 1.5 million people relied on the system when terrestrial networks failed.
The company said the service supported millions of text messages and helped deliver hundreds of wireless emergency alerts that otherwise would not have been received.
The EchoStar transaction marks a step toward scaling the service into a full 5G offering. The second-generation satellites, powered by new phased array antennas and SpaceX-designed silicon, will support thousands of spatial beams and wider bandwidths.
The company said the result will be broadband-grade service comparable to terrestrial LTE and 5G in most environments.
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The spectrum purchase underscores SpaceX’s ambition to move beyond satellite broadband and into mainstream mobile markets. With more than half of the world’s landmass still lacking reliable terrestrial coverage, the potential customer base is significant.
If SpaceX can deliver on its performance promises, the move could reshape competition in global telecom and expand the addressable market for both mobile operators and satellite connectivity.
