Starlink wants EchoStar’s spectrum. Will Musk get his way?

Starlink, the satellite internet arm of SpaceX, is in advanced talks to buy wireless spectrum from EchoStar Corporation, the company controlled by billionaire Charlie Ergen. The deal could be announced as early as this week, and if it goes through, it would be valued in the tens of billions of dollars, making it one of the biggest corporate deals of 2025.

For something that’s invisible, spectrum has turned into one of the most expensive assets in the world. And Starlink’s move to buy it outright could change how the telecom industry works forever.

Charlie Ergen is an American billionaire and co-founder of Dish Network and EchoStar, known for building a satellite TV empire and aggressively buying spectrum rights.

To understand why Musk’s company is chasing spectrum, you first need to know what spectrum actually is. 

Every time you make a call, stream a video, or scroll on Instagram, your phone isn’t connected by magic. It’s using radio frequencies to carry signals. These frequencies are limited, and regulators divide them into lanes or “bands.” Think of it like invisible highways in the air. Some highways are perfect for carrying lots of data but only over short distances, others stretch long but carry less. 

Governments control who gets which lanes so that networks don’t crash into each other. Owning a spectrum is like owning property rights to those invisible highways, and that makes it priceless.

The specific spectrum Starlink is chasing belongs to what’s known as the AWS-4 band, also called the 2 GHz band. It’s valuable because it can handle both traditional mobile transmissions from towers and satellite-to-ground communication from space. 

Charlie Ergen’s EchoStar scooped up rights to the entire band back in 2011, buying them from two bankrupt satellite operators, DBSD and Terrestar. For years, EchoStar has held onto this band, talking about building out networks but moving too slowly to satisfy regulators. That inaction triggered a backlash.

In May this year, the US Federal Communications Commission opened an investigation into whether EchoStar was meeting its obligations. Around the same time, SpaceX itself filed a complaint, accusing EchoStar of letting precious spectrum go to waste and asking for permission to share access to the 2 GHz band.

 EchoStar’s financial situation only made things worse. It skipped bond payments, admitted it was considering bankruptcy, and said the FCC’s scrutiny was stopping it from making decisions about its 5G rollout. By July, regulators were nudging EchoStar to sell. Last month, it sold a batch of licenses to AT&T for about 23 billion dollars. Starlink had also looked at those assets, but now it’s circling what remains.

For Starlink, the motivation is simple. Right now, the company beams the internet from satellites to dishes on the ground. That works fine, but Musk’s real ambition is to allow your phone to connect directly to satellites without needing a dish or a tower. To do that, Starlink needs a spectrum.

Today it relies on partnerships with telecom operators like T-Mobile, which already have the licenses. That’s how it has been able to offer texting and basic connectivity in the US. But partnerships mean dependence. If Starlink owns the spectrum itself, it gains independence. It can roll out services directly, negotiate country by country with regulators, and even rival mobile operators head-on.

T-Mobile is one of the largest mobile network operators in the US, offering wireless phone and data services. It’s also Starlink’s current partner, letting Musk’s satellites use its spectrum to provide direct-to-phone connectivity.

This is why spectrum is valued in the tens of billions. It is scarce, it is strategic, and it lasts a long time; licenses often run for 20 or 30 years. Once you own a slice, you essentially own a permanent lane on the wireless highway. That makes it one of the most valuable assets a telecom or satellite company can hold. 

For EchoStar, selling is less about strategy and more about survival. The proceeds could help it pay off debt, avoid bankruptcy, and reset its struggling business.

If the deal materialises, it would be a turning point. The telecom industry has always been dominated by companies that owned spectrum and towers — Verizon, AT&T, Airtel, Jio. Satellite companies were on the sidelines, serving rural or remote areas where towers couldn’t reach. But Starlink has already blurred those lines with thousands of satellites in orbit. Now, by buying spectrum, it could go from being an internet service provider to becoming a global telecom giant powered from space. Imagine your next phone plan not coming from a local carrier, but directly from Starlink.

Of course, there are hurdles. Regulators in each country will have their own rules. Incumbent telecom companies won’t just roll over. Ground infrastructure has to be built, and phones have to support these bands. But Musk’s playbook is clear: Starlink is no longer just about dishes in villages; it’s about global dominance in mobile connectivity.

India is a big part of this story too. Just a few months ago, Starlink secured approval to launch services here. With hundreds of millions of users still underserved in rural India, satellite internet has obvious appeal. But India’s telecom giants like Jio and Airtel have deep pockets and strong regulatory clout. If Starlink starts buying spectrum in India the way it is trying to in the US, expect intense competition and billion-dollar battles in the auctions.

Right now, the deal with EchoStar could be signed this week, though it could also fall apart or be delayed. Regulators could block it, or EchoStar could find another buyer. But the trend is clear. Regulators want spectrum used, not hoarded. EchoStar wants cash. And Starlink wants freedom from reliance on partners. The pieces are lining up for one of the largest spectrum transactions ever.

And when you step back, this is bigger than a corporate deal. It’s about the future of connectivity itself. EchoStar, once a hoarder of valuable spectrum, is being forced to offload it under pressure. AT&T has already secured a huge chunk. And Musk’s Starlink, with millions of users, global approvals, and now the chance to own spectrum, is positioning itself to disrupt the telecom order as we know it. 

A few years from now, when you pick up your phone and connect to the internet, there’s a chance your signal won’t bounce off a tower nearby. It might come directly from a satellite 500 kilometres above your head, running on a spectrum that cost tens of billions. That’s the future Starlink is betting on, and that’s why this deal matters.

Also read: Satellite Internet Wars: Starlink vs China

FAQs

What is the Starlink and EchoStar spectrum deal?

Starlink, the satellite internet division of SpaceX, is in advanced talks to buy wireless spectrum from EchoStar Corporation. The deal could be valued in the tens of billions of dollars and would give Starlink control over highly valuable AWS-4 spectrum for both satellite and mobile communications.

Why is Starlink interested in EchoStar’s spectrum?

Starlink wants EchoStar’s spectrum to reduce its reliance on telecom partners like T-Mobile. Owning spectrum would let Starlink connect phones directly to satellites without ground towers or dishes, giving it independence and the ability to compete directly with traditional mobile operators.

What is wireless spectrum in simple words?

Wireless spectrum is the range of radio frequencies that carry signals for mobile calls, internet, and satellite communication. It’s like invisible highways in the air, and owning spectrum is like owning property rights to those lanes.

What is the AWS-4 or 2 GHz band?

The AWS-4 band, also called the 2 GHz band, is a slice of spectrum that can carry both mobile network traffic and satellite signals. This dual use makes it especially valuable for companies like Starlink looking to expand global connectivity.

Who is Charlie Ergen and why is he important in this deal?

Charlie Ergen is the billionaire co-founder of Dish Network and EchoStar. He built a satellite TV empire and accumulated large spectrum holdings. His company EchoStar owns the AWS-4 band that Starlink is now trying to buy.

Why is spectrum worth billions of dollars?

Spectrum is scarce, regulated, and long-lasting. Licenses usually run for 20 to 30 years. Controlling spectrum means controlling how data flows, making it one of the most valuable assets for telecom and satellite companies.

What role does T-Mobile play in Starlink’s current services?

T-Mobile, one of the biggest US mobile operators, currently partners with Starlink by sharing its spectrum. This allows Starlink to offer direct-to-phone texting and basic connectivity, but the partnership also means Starlink is dependent on T-Mobile’s licenses.

How is EchoStar’s financial situation affecting the deal?

EchoStar has been under pressure after skipping bond payments and facing regulatory investigations. Selling spectrum gives it a way to raise billions, pay off debt, and avoid bankruptcy, making Starlink a potential lifeline buyer.

How could this deal impact the telecom industry?

If Starlink secures EchoStar’s spectrum, it could become a direct competitor to traditional telecom operators like Verizon, AT&T, Airtel, and Jio. It would blur the lines between mobile networks and satellite internet, potentially disrupting the global telecom order.

What does this deal mean for India?

India recently approved Starlink to launch services. If Starlink eventually buys spectrum in India, it could bring satellite internet to underserved rural areas. However, it would face stiff competition from Jio and Airtel, who dominate the market and spend heavily in spectrum auctions.