SpaceX has struck a deal with EchoStar to purchase 50 MHz of S-band spectrum in the U.S., along with global mobile satellite service licenses, for a whopping $17 billion US (about $23.5 billion CAD). Colorado-based Echostar is the parent company of Dish Network and also owns Hughes Network Systems.
The move will support the next generation of its Starlink Direct to Cell network, aimed at extending broadband and 5G service to regular smartphones worldwide.
Starlink Direct to Cell launched in early 2024, when SpaceX began adding satellites capable of linking directly to unmodified LTE phones. Within weeks, the system supported text messaging, later expanding to video calls. Today, more than 600 satellites are in orbit, providing coverage across five continents. SpaceX says the network is now handling millions of users, including during natural disasters when traditional cell networks are offline.
The system works like roaming onto another carrier, but instead of a cell tower on the ground, the phone connects to a satellite orbiting about 360 km above Earth. Partnerships with operators such as T-Mobile (U.S.), Rogers (Canada), Optus and Telstra (Australia), and KDDI (Japan) are helping extend access to customers in remote areas.
Rogers launched Starlink Direct to Cell back in July, offering texting to all Canadians, with a free beta trial available until October. After that, it’s $15/month to subscribe, or it’s included with Rogers Ultimate Plans.
Starlink’s first-generation service has already been used in emergencies, including U.S. hurricanes and wildfires, where more than 1.5 million people were able to send messages when land-based networks were down. In New Zealand, a woman in a rural area used the service to report a car accident from a dead zone, allowing first responders to arrive within minutes, cited SpaceX.
With the new EchoStar spectrum, SpaceX plans a second-gen constellation that will deliver much higher capacity and support full 5G features. The company claims these satellites will handle up to 100 times more traffic than the current generation and offer performance closer to existing ground-based networks.
SpaceX expects to use its much larger Starship rocket to launch the bigger satellites needed for this next phase (the company recently successfully tested this in space) through a Pez-dispenser-like deployment system, as seen below:
So in a nutshell, this deal may eventually bring 5G Starlink coverage globally, to any unmodified cellphone. Maybe one day Starlink will bypass carrier partners and offer 5G wireless plans directly to customers?
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