Starlink buys mobile frequencies: Direct-to-cell possible without a partner

On Monday, SpaceX announced the acquisition of EchoStar cellular frequencies in the AWS-4 and AWS-H blocks for 17 billion US dollars. The package consists of up to 8.5 billion dollars in cash and the same amount in SpaceX shares. In addition, the space company will assume around 2 billion dollars in interest payments on EchoStar debt until November 2027.

For the satellite internet service Starlink, the purchase means that it will be able to offer direct-to-cell services independently of mobile phone providers in the future, allowing smartphones to connect directly to the satellites, for example. Until now, the company has been reliant on partnerships with companies such as T-Mobile. The declared goal: the global elimination of mobile radio dead spots. By purchasing the frequencies, Starlink now has the opportunity to not only position itself as a supplement to existing mobile communications offerings, but also to launch its own on the market. EchoStar and SpaceX also agreed to work together to provide EchoStar customers with coverage via Starlink's direct-to-cell services.

EchoStar was under pressure

AWS-4 stands for Advanced Wireless Services-4 and covers the frequency bands 2000–2020 MHz and 2180–2200 MHz (also known as the 2 GHz band). H-Block, also known as AWS-2, stands for the frequencies 1915–1920 MHz and 1995–2000 MHz.

The deal comes at the right time for EchoStar. The US telecommunications regulator FCC had accused the company of not making sufficient use of its spectrum holdings for 5G expansion. Even US President Donald Trump had exerted pressure for an agreement. The sale follows a deal concluded in August, in which EchoStar sold other spectrum licenses to AT&T for 23 billion dollars.

Both transactions are intended to end the ongoing FCC investigations, the companies announced. The closing of the transaction is still subject to regulatory approvals.

(mki)