Starlink’s spectrum play rewires the direct-to-device race

SpaceX’s $17 billion purchase of EchoStar spectrum signals a deliberate push to blend satellite and mobile connectivity at consumer scale.

The deal: AWS-4 and H-Block in the 1.9–2.0 GHz range

SpaceX is acquiring EchoStar’s AWS-4 and H-Block licenses, adding roughly 1.9–2.0 GHz spectrum into its portfolio for direct-to-device (D2D) service in the U.S. These mid-band frequencies are attractive because they align with handset-friendly propagation characteristics and can be added to future phone RF front-ends. While not vast by terrestrial standards, the haul is material for satellite-to-cell and more flexible than borrowing capacity from partners. It also reduces reliance on a single MNO’s assets and opens room for Starlink to define its own radio roadmap.

From T-Mobile add-on to potential “global carrier”

Starlink already operates a U.S. partnership with T-Mobile to cover dead zones, starting with messaging and expanding to limited data in selected apps. Owning licensed spectrum lets SpaceX widen capabilities beyond roaming-style add-ons, potentially toward a branded service that spans home broadband and handset connectivity. Starlink’s fleet exceeds 8,000 satellites, with hundreds now configured for direct-to-cell links, a base SpaceX plans to grow with new payloads optimized for the EchoStar bands.

Why now

Momentum is building across the D2D stack: 3GPP non-terrestrial network features are maturing, device vendors are reworking RF designs, and MNOs see satellite as a coverage and resilience tool rather than a threat. Locking spectrum now gives SpaceX leverage in device and carrier negotiations and positions it ahead of rivals like AST SpaceMobile and Globalstar in U.S. handheld connectivity.

What a Starlink “carrier” could look like

SpaceX’s own words suggest a dual-mode account spanning fixed and mobile, but the path runs through ecosystem work, not just rockets.

Integrated home broadband plus direct-to-cell

The vision combines residential Starlink with handset-grade satellite access under one account. At home, a dish delivers high throughput; on the go, the same account provides satellite fallback when terrestrial coverage fades. Expect positioning as a continuity layer that boosts availability and safety-of-life use cases, not as a wholesale replacement for dense urban mobile networks.

Device and chipset timelines

Current phones do not support the EchoStar bands for satellite operation, and chipset changes are needed. SpaceX and silicon vendors will need to add band support, timing compensation, and power management tailored to non-terrestrial links, a process that typically spans design, standardization alignment, certification, and OEM integration. A two-year window for first compatible handsets is a realistic baseline.

Satellite payload upgrades and indoor reach

Next-gen Starlink satellites must carry radios tuned to these bands and support the necessary link budgets for handheld antennas. Mid-band spectrum and tighter beams should improve indoor penetration versus higher-frequency payloads, though challenging environments with heavy metal or dense construction will still constrain performance. Early services will emphasize messaging and low-rate data, with incremental steps toward higher throughput as constellation density and spectrum efficiency improve.

The hard limits: spectrum, capacity, and economics

The opportunity is significant, but LEO-to-phone economics, spectrum depth, and urban capacity remain gating factors.

Urban link budgets and total throughput

Even with AWS-4/H-Block, total available bandwidth is modest relative to what dense terrestrial networks wield with wide channels and massive MIMO. Handset-sized antennas and strict power limits constrain spectral efficiency, particularly indoors and in city canyons. Data volumes will be rationed for the foreseeable future, making D2D best suited to coverage extension, emergency connectivity, and sparse geographies.

Why MNOs still hold the cards

Incumbent carriers control larger, diversified spectrum holdings, dense cell-site grids, and mature core networks. They can deliver lower latency and far higher aggregate capacity in metro areas, and they already own enterprise relationships. Satellite will pressure pockets of rural and remote revenue and serve as a redundancy layer, but it does not negate the economics of fiber and 5G in high-traffic zones.

MVNO and wholesale are the pragmatic path

Analysts broadly expect Starlink to expand via partnerships: wholesale arrangements to MNOs for satellite fallback, and potentially an MVNO to bring a Starlink-branded phone plan to market without building a full terrestrial network. This model accelerates distribution, reduces regulatory friction, and aligns incentives with carriers that want universal coverage without overbuilding.

Competitive dynamics: Apple, Globalstar, AST, and Verizon

The EchoStar move forces strategic choices across the device, satellite, and carrier ecosystems.

Apple’s fork in the road

Apple seeded the D2D market via Globalstar-backed iPhone features and is funding Globalstar’s next constellation. The question is whether future iPhones add support for SpaceX bands and protocols, remain exclusive with Globalstar, or lean into carrier-led satellite roaming. Apple’s choice will shape global device availability and influence which satellite networks achieve scale.

Globalstar’s upgrade path versus Starlink scale

Globalstar is enhancing capacity and beamforming to improve handset services, likely focused on messaging and moderate data bursts. Starlink, by contrast, is betting on a much larger LEO footprint and new mid-band spectrum to lift per-user throughput. Expect coexistence near term, with differentiation on coverage breadth, device support, and wholesale partnerships.

AT&T, AST SpaceMobile, and the Verizon question

AT&T is aligned with AST SpaceMobile for satellite-to-phone and downplays the threat to its core urban and enterprise segments, though it acknowledges pressure in rural and outdoor markets. Verizon was floated as a hypothetical acquisition path to more spectrum, but a purchase is speculative at best; pragmatic near-term steps are MVNOs and roaming agreements rather than megamergers.

What operators and enterprises should do now

Leaders should treat D2D as a coverage and resilience layer that will commercialize in phases through 2026.

For mobile operators

Identify priority geographies and segments where satellite fallback reduces churn and roaming costs, then pursue wholesale and roaming deals with satellite providers. Begin device certification programs for NTN-capable handsets and update core network policies for satellite-aware QoS, billing, and emergency services. Consider MVNO constructs if a branded satellite offer fits your portfolio.

For device OEMs and chipset vendors

Map band support for AWS-4/H-Block and align with 3GPP NTN features in Releases 17–18. Invest in RF front-end, timing, and power optimizations for LEO links, and coordinate with satellite operators on conformance and test plans. Early support in upper-tier devices will catalyze demand from premium users and field-work verticals.

For enterprises and public sector

Pilot satellite-enabled smartphones and fixed backup links for field operations, logistics, utilities, public safety, and remote retail. Design policies for data prioritization, offline-first apps, and security when sessions traverse non-terrestrial paths. Budget for modest per-user satellite data as an availability premium, not a primary broadband replacement.

Key milestones to watch through 2026

FCC and international approvals for EchoStar band use by Starlink, satellite launch cadence for D2D payloads, MVNO or wholesale announcements with Tier-1 carriers, device OEM roadmaps that add these bands, expansion of T-Mobile’s satellite data beyond messaging, and AST SpaceMobile’s constellation progress relative to capacity targets. The players moving fastest on devices and distribution will set the pace for this new layer of connectivity.