Your phone could be SpaceX’s next target — here’s why nothing is stopping it

SpaceX has made a strategic move to dominate the direct-to-device (D2D) market by acquiring D2D-dedicated frequencies from Echostar for $17 billion, enabling direct smartphone connectivity to its Starlink network without fixed antennas. This acquisition positions SpaceX to capture a significant share of the D2D market, projected to grow from $102 million this year to $10 billion by 2033, providing substantial revenue to fund its ambitious constellation expansion. While new satellites are required by 2027/2028 and smartphone chip upgrades are necessary, initial phone tests are expected by late next year, indicating a critical advancement in mobile telecoms.

Analysis

SpaceX has just been handed the green light to revolutionize telecoms — and your phone is first in line. The company, led by Elon Musk, has secured essential frequencies that will allow your mobile to connect directly to its Starlink network. Welcome to a bold new era where telecoms and the space race collide. Since 2019, SpaceX has launched around 9,700 satellites as part of its Starlink megaconstellation — a number that could cross the 10,000 mark by November. Among them, a few hundred are built to do something radically new: connect directly with smartphones, bypassing the need for fixed antennas. This is what’s known in the industry as Direct-to-Device, or D2D — and SpaceX is perfectly positioned to lead the charge in this highly lucrative market. Owning the airwaves Starlink was originally designed to bring fast, reliable internet to places fiber optics still can’t reach. It’s already a hit in rural areas, not to mention with airlines and cruise ships that need Wi-Fi through dead zones. Even the Ukrainian military relies on it. Si vous n’avez jamais vu une usine d’assemblage de satellites, et bien sachez que ça ne ressemble (d’habitude) pas à ça.pic.twitter.com/nhRGlM8KS2 — Techniques Spatiales – French Space Guy (@TechSpatiales) August 28, 2025 The catch? Right now, Starlink users still need a fixed dish to get online. To make mobile access seamless, SpaceX has had to go cap in hand to every phone carrier to borrow their frequencies. But that’s changing — fast. On September 8, U.S. satellite company Echostar sold a set of D2D-dedicated frequencies to SpaceX for a jaw-dropping $17 billion. This means SpaceX now controls the very frequencies it needs to beam Starlink directly to your phone. Open the pod bay door, HAL — SpaceX (@SpaceX) August 26, 2025 Starship deploying @Starlink simulator sats pic.twitter.com/3CSOyulzcJ Satellites aren’t enough — phones must evolve too There’s just one snag: the satellites currently orbiting Earth weren’t designed for this kind of mobile connection. Speaking at World Space Business Week in Paris on September 16, SpaceX president and COO Gwynne Shotwell revealed that a new generation of satellites will be launched by 2027 or 2028. “We hope to run the first phone tests by the end of next year,” she said. But it’s not just satellites that need an upgrade — your smartphone does too. “We’re working with manufacturers to make sure the right chip is in the phone,” Shotwell added. And although SpaceX now holds the upper hand in negotiations with mobile carriers, Shotwell admits it’s still “a huge amount of work.” Racing to rule the skies With this latest leap, Starlink is poised to dominate the D2D sector, projected to hit $102 million this year — and a staggering $10 billion by 2033, according to market analysts Novaspace. Not only could this bring in major revenue, it will also help fund SpaceX’s plan to expand its satellite constellation to a jaw-dropping 30,000 units. It’s an ambitious goal, especially as low Earth orbit becomes increasingly crowded, raising the risk of potentially catastrophic satellite collisions. SpaceX has executed a pivotal strategic transaction by acquiring Direct-to-Device (D2D) dedicated frequencies from Echostar (SATS) for $17 billion. This move fundamentally enhances SpaceX's competitive position in the nascent D2D market by granting it ownership of critical spectrum, thereby reducing its reliance on mobile carriers for frequency access. The acquisition positions SpaceX to capitalize on a market projected by Novaspace to grow from $102 million this year to $10 billion by 2033, with the resulting revenue intended to fund the expansion of its Starlink constellation to 30,000 satellites. However, significant operational hurdles remain, as acknowledged by COO Gwynne Shotwell. A new generation of satellites is required, with launches slated for 2027 or 2028, and smartphones will need new chipsets to enable connectivity. While initial phone tests are targeted for the end of next year, extensive work with manufacturers and mobile carriers is still necessary, and the aggressive expansion also heightens long-term risks associated with orbital crowding.

Key Decisions for Investors

• For investors in Echostar (SATS), the key focus should be on how management plans to deploy the $17 billion in proceeds from the asset sale, as this will be a primary driver of future shareholder value.
• Incumbent satellite operators and traditional mobile carriers face a significant competitive threat; investors should reassess the long-term viability and D2D strategy of companies in these sectors given SpaceX's aggressive vertical integration.
• Consider identifying and monitoring public semiconductor companies poised to supply the new chips required for D2D-enabled smartphones, as they represent a key derivative play on this emerging ecosystem.
• While the long-term outlook is promising, investors should track key execution milestones, including results from phone tests next year and partnership announcements with handset makers, to validate progress against the 2027-2028 operational timeline.