Elon Musk's SpaceX Scores $17 Billion Deal to Revolutionize Mobile Phone Coverage

Elon Musk's SpaceX has agreed to buy a cache of airwave licenses for $17 billion, enabling its Starlink satellite network to provide seamless mobile phone service in areas with no cellular coverage. The deal gives SpaceX control of satellite constellations, launch infrastructure, and direct connections with mobile devices. Starlink will compete with rivals such as AST SpaceMobile, Amazon, and Globalstar in the race for ubiquitous coverage. The purchase is a validation of the massive market opportunity for space-based connectivity.

Elon Musk's SpaceX has secured a significant victory in its quest to provide seamless mobile phone service in areas with no cellular coverage. The company has agreed to buy a cache of airwave licenses for $17 billion, which will enable its Starlink satellite network to expand its capabilities and compete more effectively with rivals like AST SpaceMobile, Amazon, and Globalstar Elon Musk Bets $17 Billion on Plan to Serve Mobile Phone Deserts^[1].

The deal, which was announced on September 19, 2025, gives SpaceX control of satellite constellations, launch infrastructure, and direct connections with mobile devices. This strategic acquisition allows Starlink to offer more feature-rich broadband service, even in mobile dead zones, and positions the company at the forefront of the space-based connectivity race Elon Musk Bets $17 Billion on Plan to Serve Mobile Phone Deserts^[1].

The purchase of the spectrum licenses from EchoStar Corp. is a validation of the massive market opportunity for space-based connectivity. SpaceX is already the dominant player in launch services and has the largest network of satellites delivering internet service across the globe. With the new spectrum licenses, Starlink will be able to expand its direct-to-cell constellation of 600 satellites in low-earth orbit, further enhancing its capabilities Elon Musk Bets $17 Billion on Plan to Serve Mobile Phone Deserts^[1].

While Starlink will still need the support of wireless carriers to provide seamless coverage in cities, the deal gives T-Mobile US Inc. a significant advantage. T-Mobile customers are in line to get the Starlink network upgrades first, as the company has an agreement with SpaceX to use its satellites to fill gaps in T-Mobile's 5G wireless network Elon Musk Bets $17 Billion on Plan to Serve Mobile Phone Deserts^[1].

Globalstar, another major player in the space-based connectivity market, is also expanding its operational frequencies. The company announced plans to bring its HIBLEO-XL-1 system into use, which will deliver robust mobile satellite capabilities. This move is part of Globalstar's strategy to grow as a major provider of connectivity in the global space economy, which is expected to reach $1.8 trillion by 2035 Globalstar to Enter Next Era of Mobile Satellite Connectivity with Expanded Operational Frequencies^[2].

As SpaceX and Globalstar continue to expand their capabilities, the competition among wireless carriers to offer broader coverage and better service far from their cell towers is expected to intensify. The space-based connectivity market is poised for significant growth, driven by the increasing demand for reliable and affordable connectivity solutions in both urban and rural areas [^1, 2].