Starlink Now Offers Light Mobile Phones for Frequency Purchase

In a significant move for the satellite internet industry, SpaceX's Starlink has purchased frequency rights from EchoStar for approximately $17 billion. This acquisition, however, occurred separately from SpaceX's acquisition of EchoStar.

The sale by EchoStar was a result of pressure from investigations by the U.S. telecommunications regulator, the FCC, due to complaints about EchoStar not actively using satellite and mobile frequencies, as alleged by SpaceX. The frequency rights sold to AT&T for around $25 billion were different from those being acquired by SpaceX from EchoStar.

Prior to the acquisition, Starlink had been working with traditional mobile network providers due to a lack of frequency rights. The acquired radio frequencies will enable Starlink to bring internet from space directly to smartphones without additional equipment, a service that will allow Starlink to provide internet service directly to smartphones without relying on traditional mobile network providers.

The acquisition is valued at around $17 billion, with the deal involving a mix of cash, SpaceX stocks, and the assumption of around $2 billion in debt. Elon Musk's satellite internet service, Starlink, has been launching satellites into space since last year.

It's important to note that the sale by EchoStar to AT&T did not affect Starlink's plans to provide internet service directly to smartphones, nor did it change the valuation of the acquisition by SpaceX from EchoStar. The sale of frequency rights by EchoStar to AT&T also did not involve Starlink.

The satellite company involved in the acquisition is EchoStar, and the operating company of Starlink is SpaceX. This acquisition marks a significant step forward for Starlink as it continues to expand its satellite internet service.