"Expanding Direct-to-Phone Connectivity...
Building the Next-Generation Satellite Network"
SpaceX has acquired a wireless frequency band, significantly expanding its ability to provide satellite communications and direct-to-phone connectivity services.
On September 8 (local time), SpaceX announced that it had signed an agreement with U.S. telecommunications service provider EchoStar to acquire a 50MHz wireless frequency band and a global Mobile Satellite Service (MSS) frequency license. With this deal, SpaceX explained that it will be able to develop and deploy the next-generation Starlink satellite network that connects directly to mobile phones, enabling broadband communications and internet services anywhere in the world.
In January last year, SpaceX began deploying Starlink satellites equipped with the "Direct to Cell" feature, which connects directly to mobile phones without the need for a separate device, with the goal of eliminating mobile dead zones worldwide. Since then, the company has expanded its services in collaboration with regional mobile carriers such as T-Mobile in the United States, moving from text messaging to features like video calls. SpaceX currently has over 600 first-generation Starlink Direct to Cell satellites in orbit, providing service to more than 6 million users worldwide.
SpaceX stated that it plans to deploy next-generation Starlink satellites utilizing the newly acquired wireless frequency bandwidth, offering its own broadband communications service with dramatically improved performance. The company explained, "It will enable 5G connectivity that delivers an experience similar to current terrestrial LTE service in most environments." It further expressed confidence that "the latest satellite technology, exclusive frequencies, and the deployment of satellites in low Earth orbit using the Starship rocket will eliminate global coverage gaps and ultimately eradicate mobile dead zones."
According to Bloomberg News and others, SpaceX agreed to pay EchoStar approximately $17 billion in cash and stock to acquire the wireless frequency band. EchoStar, which had been struggling financially, saw its prospects for recovery improve with this deal, and its stock price surged 19.91% on the New York Stock Exchange that day.
Meanwhile, as SpaceX makes a full-fledged entry into the mobile communications market, it is expected to erode the market share of existing operators. On the same day, shares of the three major U.S. telecom companies-T-Mobile (-3.90%), Verizon Communications (-2.39%), and AT&T (-2.38%)-fell in tandem on the New York Stock Exchange.
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