SpaceX paid $17 billion for global connectivity

The largest deal between SpaceX and operator Echostar has been completed. As a result, SpaceX paid $17 billion for 1900 MHz frequencies. The purchased frequencies are planned to be used for the Direct-to-Cell project, which aims to connect smartphones to Starlink without the involvement of cellular operators.

A revolutionary deal

For the communications market, the deal will affect the ability to access communications even in areas where there has never been coverage. Users will be able to make calls and use the Internet connection in the mountains and even in the desert or ocean. However, at this stage, the Starlink signal cannot serve the needs of users in crowded megacities.

The new Direct-to-Cell project is aimed at users in remote areas where satellite communications can completely replace traditional infrastructure.

Analysts believe that the company will not only be able to strengthen its market position in this way, but also begin to compete with traditional operators in the future. When technology is able to overcome limitations in signal quality and capacity, the mobile industry will face a major challenge.