SpaceX is making another major move in the wireless communications space, purchasing additional spectrum from EchoStar for $2.6 billion. This follows its earlier $17 billion acquisition of H-block and AWS-4 frequencies from the same company in September. The new purchase focuses on AWS-3 spectrum, which unlike the previously bought AWS-4 band for satellite services, is reserved for terrestrial use. Analysts believe this signals Elon Musk’s growing ambition to shake up the U.S. mobile market — possibly turning SpaceX into a key player in direct-to-cell and terrestrial wireless networks.
The AWS-3 spectrum SpaceX just acquired is unpaired, meaning it relies on Time Division Duplexing (TDD). In this method, a single frequency alternates between sending and receiving data, unlike Frequency Division Duplexing (FDD) that separates those functions onto different bands. While TDD limits range compared to FDD, it’s ideal for dense data usage like 5G mid-band frequencies — the same type used by major carriers such as T-Mobile and Verizon.
So what’s Musk planning to do with this new asset? Some industry observers think SpaceX is positioning itself to build a hybrid network that blends its Starlink satellites with ground-based infrastructure, creating seamless coverage even in dead zones. Others, like AvidThink founder Roy Chua, believe SpaceX will continue partnering with existing mobile carriers rather than competing directly. Instead, Musk could focus on specialized enterprise and IoT applications that benefit from high-capacity mid-band airwaves.
This acquisition still requires FCC approval, but the timing and scale have turned heads across the telecom world. Especially since EchoStar, pressured by FCC Chairman Brendan Carr and its own financial challenges, was forced to sell much of its spectrum to carriers like AT&T earlier this year. Boost Mobile, once seen as EchoStar’s path to becoming the fourth nationwide carrier, ended up selling its own spectrum and signing a deal to operate on AT&T’s network instead.
If SpaceX truly plans to challenge the “Big Three” mobile carriers — Verizon, AT&T, and T-Mobile — it could mark the most significant disruption in U.S. wireless history since the 4G era. But some experts like Roger Entner of Recon Analytics warn that building large-scale terrestrial coverage from scratch would be incredibly expensive and time-consuming. Still, Musk’s financial power and his track record of transforming entire industries make it hard to dismiss the possibility.
Whether SpaceX becomes America’s fourth facilities-based mobile operator or simply strengthens its satellite-cellular integration, this $2.6 billion move cements Elon Musk’s determination to reshape how we connect — on Earth and beyond.
