SpaceX Enters Mobile Biz?
Deal
SpaceX struck a $17B deal to buy spectrum licenses from EchoStar, paving the way for the company to deliver internet directly to mobile phones.
Context
Wireless spectrum refers to the range of radio frequencies used to transmit data for mobile and internet services, allocated and regulated by the Federal Communications Commission (FCC) to ensure efficient use. EchoStar, which owns the Dish Network satellite television service and Boost Mobile, has faced mounting pressure this year from the FCC to better utilize its wireless spectrum holdings, including to deploy 5G across the US. Meanwhile, SpaceX has been providing home broadband through its Starlink satellite network to more than 100 countries. It's also been moving into mobile service, including through a partnership with T-Mobile to deliver service to customers in remote areas.
Largest Deal Ever
On Monday, SpaceX announced a deal to pay $17B for EchoStar's wireless spectrum licenses, thereby expanding Starlink's satellite cellular capabilities.
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