Elon Musk’s company SpaceX just made a massive $17 billion deal to buy wireless airwaves (called spectrum licenses) from EchoStar, the parent company of Boost Mobile and Dish. Why? To make sure Starlink ’s satellites can connect directly to your mobile phone, even in places where there’s no cell tower. This move could bring mobile coverage to remote villages, forests, highways, and other areas that currently have zero signal.
As part of the deal, Boost Mobile customers will be the first to use Starlink’s direct-to-cell satellite service. That means if you’re in a dead zone, your phone might soon still work without needing Wi-Fi or a tower nearby. SpaceX President Gwynne Shotwell said the company’s goal is to “end mobile dead zones around the world.”
Starlink – Why the Deal Is a Big Deal
Until now, Starlink mostly relied on renting spectrum (wireless frequencies) from mobile carriers like T-Mobile. With this new deal, SpaceX owns the spectrum it needs giving it more control and freedom to expand its satellite service. The news was big enough to shake up the stock market. EchoStar’s stock jumped nearly 22%, while big phone companies like AT&T, Verizon, and T-Mobile all saw their shares drop.
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SpaceX is paying half in cash and half in stock, and they’ll also cover around $2 billion in debt for EchoStar through 2027. Meanwhile, EchoStar will still run Dish TV, Sling, HughesNet, and Boost Mobile but it’s clearly making room for SpaceX to lead in satellite-powered mobile service. With over 8,000 Starlink satellites already in space, this deal could mark a big step toward worldwide phone coverage anywhere, anytime.
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