SpaceX plans to deploy the new airwaves for its direct-to-cell service, designed to provide broadband-speed satellite connectivity directly to ordinary smartphones
SpaceX’s $17B spectrum buy reshapes telecom competition – The EchoStar deal positions Starlink as a disruptive force in U.S. mobile markets, rattling AT&T, Verizon, and T-Mobile US shares.
Starlink performance is improving but uneven – Ookla data shows strong downloads but weak uploads, while Starlink’s own metrics highlight near-terrestrial speeds, growing capacity, and expanding satellite coverage.
Regulatory stakes are high — The FCC’s push to put idle spectrum to use and ensure fair competition will determine whether SpaceX’s expansion benefits consumers or entrenches new imbalances.
Elon Musk’s SpaceX will acquire EchoStar’s AWS-4 and H-block spectrum licenses in a $17 billion transaction that combines up to $8.5 billion in cash and up to $8.5 billion in SpaceX stock. As part of the agreement, SpaceX will also cover about $2 billion in EchoStar’s debt interest through November 2027.
The deal immediately rippled across Wall Street. T-Mobile US shares fell 5% on Monday, while AT&T and Verizon each dropped 4%, reflecting investor concern that SpaceX’s expanding Starlink network could intensify competition in the U.S. telecom sector. EchoStar stock, by contrast, surged more than 20% in early trading.
Notably, however, Craig Moffett, analyst at MoffettNathanson, said T-Mobile US will likely benefit from the new situation. “T-Mobile’s pre-existing agreement with Starlink to provide D2D (direct-to-device) service in remote areas was already arguably advantaged versus Verizon and AT&T’s partnership with AST,” he wrote in a report. “Now it will be dramatically more so. Verizon and AT&T will be commensurately disadvantaged.”
SpaceX plans to deploy the new airwaves for its next-generation direct-to-cell service, which was first launched last year and is designed to provide broadband-speed satellite connectivity directly to ordinary smartphones — bypassing traditional carrier infrastructure. The company has also struck a long-term commercial agreement enabling Boost Mobile customers to access Starlink service.
The sale comes as the FCC pressures license holders to put long-idle spectrum to use. Earlier this year, regulators warned EchoStar that it risked losing its licenses for underutilization. By selling to both SpaceX and AT&T, EchoStar appears to have met those regulatory demands.
For SpaceX, the acquisition marks a major step in scaling its wireless ambitions, positioning Starlink as both a global broadband provider and a potential disruptor in U.S. mobile markets.
Starlink’s speeds climb, but upload lags
Ookla’s June Speedtest data showed Starlink reaching median download speeds of 104.7 Mbps, exceeding the FCC’s 100 Mbps broadband benchmark — but its median upload speeds sit at 14.8 Mbps, below the 20 Mbps threshold. As a result, just 17.4% of users meet both uplink and downlink standards. Latency is improving, with ranges between 38–39 ms in urban areas, although rural regions like Alaska and Hawaii still see over 100 ms.
Starlink’s own operational data, however, depicts a much stronger story, with peak-hour downloads soaring and latency nearing terrestrial norms. Starlink claims a median download speed across more than 2 million U.S. users of nearly 200 Mbps during peak hours and median peak-hour latency at 25.7 ms, with fewer than 1% of measurements exceeding 55 ms, outperforming many terrestrial networks.
Further, the company said it has more than 7,800 satellites, 100+ U.S. gateway sites with 1,500+ antennas, and optical inter-satellite links — boosting resilience, capacity, and routing flexibility, especially during terrestrial outages or disasters. As of mid-2025, Starlink is adding more than 450 Tbps of capacity annually, including 400+ polar-orbit satellites scheduled this year for enhanced high-latitude coverage.
What this means in context
While Ookla’s Speedtest results highlight continued challenges — especially with uploads —For rural or underserved users, Starlink’s growing constellation and ground infrastructure offer a compelling alternative, especially when traditional broadband fails. As Starlink readies to challenge mobile carriers with direct-to-device service, its evolving performance benchmarks deepen the market implications for AT&T, Verizon, and T-Mobile — and regulators must weigh both speed data and competitive dynamics as the satellite provider gains momentum.
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