EchoStar's LEO Satellite Plan Halted as SpaceX Buys Spectrum for $17 Billion
U.S.-based EchoStar's ambitious plan to launch a $5 billion low Earth orbit (LEO) constellation of 100 satellites, announced in August, was abruptly ended in September. This followed EchoStar's sale of spectrum to SpaceX for a staggering $17 billion, indicating the latter's significant interest in the emerging direct-to-device (D2D) market.
The D2D landscape is rapidly evolving. Companies like AST SpaceMobile and Lynk Global are focusing on terrestrial wireless partnerships, while established players such as Viasat and Globalstar are adapting mobile industry standards to reach the mass market. Geostationary operators Viasat and Space42 have joined forces to pool their Mobile Satellite Services (MSS) spectrum, aiming to challenge SpaceX's growing dominance.
Internationally, Europe is studying ways to improve D2D with MSS spectrum, and China has issued new guidelines to accelerate its own plans in this market, estimated to be worth over $100 billion. Meanwhile, the FCC has dropped investigations into EchoStar's underutilization of spectrum holdings, allowing the company to sell $23 billion worth of terrestrial spectrum to AT&T and focus on other ventures.
SpaceX is seizing the opportunity, seeking FCC permission to deploy up to 15,000 more satellites with D2D payloads, leveraging the spectrum from its EchoStar deal. AST SpaceMobile, with significant investments and partnerships, including a major push from telecom magnate Carlos Slim, is expanding its presence in the Americas and advancing its 5G satellite connectivity services.
In just six weeks, the D2D connectivity market has seen remarkable transformations. With estimates predicting around 300 million monthly D2D users by 2030 and service revenues climbing from around $400 million today to $5.7 billion, the competition and innovation in this sector show no signs of slowing down.
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