During the ITU Space Connect conference on February 24, 2026, SpaceX announced an ambitious roadmap for its Direct-to-Cell (D2C) service, targeting user speeds of up to 150Mbps. This performance goal represents a significant evolution from the current 4Mbps text-and-emergency capability, positioning Starlink to compete directly with terrestrial 5G broadband.
The upgraded architecture relies on the integration of exclusive mid-band spectrum and the deployment of a new 15,000-satellite constellation designed for ultra-low latency mobile connectivity.
Spectrum Acquisition and Constellation Expansion
The 150Mbps target is underpinned by a massive spectrum acquisition finalized in late 2025. SpaceX entered into a $17 billion agreement with EchoStar to acquire AWS-4 and H-Block licenses, granting the company 50MHz of dedicated mid-band capacity. To utilize this spectrum at scale, SpaceX has filed with the FCC to launch an additional 15,000 satellites into Very Low Earth Orbit (VLEO), at altitudes between 326 km and 335 km. These satellites will feature massive 2,400-square-foot phased array antennas, effectively serving as “cell towers in space” that communicate directly with unmodified smartphones.
Strategic Rationale: The “Fourth Wave” of Revenue
Analysts at Sequoia Capital identify Direct-to-Cell as the “fourth wave” of SpaceX’s commercial growth, following residential broadband, enterprise maritime/aviation, and the Starshield defense line. By internalizing EchoStar’s spectrum, SpaceX moves from a leasing model—such as its early partnership with T-Mobile—to a dominant facilities-based position. This allows the company to capture a projected $17.8 billion global mobile-satellite market by 2028. The shift toward high-speed broadband D2C is designed to make Starlink a primary connectivity provider for the world’s 5 billion mobile users, particularly in regions where terrestrial 5G infrastructure is economically unfeasible.
Leadership and Market Transition
The transaction has also reshaped the landscape for EchoStar, which has transitioned into a spectrum holding entity and “hybrid” mobile operator. Hamid Akhavan, CEO of EchoStar Capital, stated that combining EchoStar’s spectrum with SpaceX’s launch capabilities allows for the “realization of the direct-to-cell vision in a more innovative, economical, and faster way.” For SpaceX, the move consolidates its vertical integration, pairing its Starship launch vehicle—which will deploy the massive V3 satellites—with the proprietary spectrum needed to deliver fiber-like speeds to handsets.
Timeline for High-Speed Rollout
SpaceX anticipates that the upgraded 150Mbps service will begin initial testing in late 2027, coinciding with the full regulatory closure of the EchoStar spectrum transfer. Industry forecasts from Sequoia point to 2028 as the inflection point for mass adoption, once a sufficient density of V3 satellites is established in VLEO. By that time, the network is expected to support seamless broadband connectivity for standard mobile devices without the need for external hardware or specialized chips.
