SpaceX is embarking on an ambitious plan to revolutionize global mobile connectivity by directly linking smartphones to its Starlink satellites, aiming to eliminate the need for traditional SIM cards and roaming services. This initiative, dubbed “Direct to Cell,” envisions a world where internet access is available in areas lacking reliable terrestrial network coverage, fundamentally altering how people connect.

A monumental step in this endeavor was the September 2025 announcement of a $17 billion deal, one of the largest satellite spectrum sales ever recorded, for SpaceX to acquire wireless spectrum licenses from EchoStar. This transaction includes crucial AWS-4 and H-block bands, essential for supporting 4G and 5G mobile networks. The acquisition grants SpaceX full control over the necessary spectrum to build a global direct-to-cell satellite network. SpaceX will pay $8.5 billion in cash and another $8.5 billion in stock, while also assuming approximately $2 billion of EchoStar’s debt. SpaceX President Gwynne Shotwell highlighted that this investment will eradicate mobile dead zones and power a new generation of Starlink satellites designed for enhanced data capacity and improved phone compatibility. This strategic move positions SpaceX as the first company to control every layer of mobile delivery from orbit, setting it up to challenge established telecom giants like AT&T and Vodafone in the coming years. Elon Musk further confirmed that SpaceX is developing new satellites and smartphone chips specifically to facilitate direct phone-to-satellite links, aiming for a single global mobile network where users can even stream videos anywhere.

Starlink’s “Direct to Cell” service operates by enabling standard 4G LTE phones to connect directly to Starlink satellites without requiring specialized hardware or a Starlink dish. New Starlink satellites are equipped with modems, known as eNodeBs, which effectively function as mobile towers in orbit. When users are outside terrestrial network coverage, their phones connect to a passing satellite for essential services such as texting, voice calls, and eventually, limited mobile data. These satellites then relay signals through Starlink’s existing ground station network, providing connectivity where there is clear sky access. While expected to be more affordable than traditional satellite phones, Direct to Cell is not designed to replace Starlink’s dish-based home internet in terms of speed or capacity. Instead, it prioritizes coverage and accessibility, with early offerings focusing on basic communication before expanding to data. Pricing is anticipated to be an add-on to existing mobile or Starlink plans rather than a standalone broadband service.

SpaceX’s ultimate goal for Starlink is to establish a single global carrier where one account provides service anywhere without roaming or SIM changes. Musk describes it as a “comprehensive, high-bandwidth, direct-to-cell solution.” This model has the potential to disrupt traditional telecom systems by replacing physical towers and roaming agreements with satellite links, offering users easier and more affordable internet access. Competitors such as AST SpaceMobile, Lynk Global, and Apple’s Globalstar partnership are also vying in this space, but they face challenges including higher costs, slower rollouts, and narrower scope compared to SpaceX’s vertically integrated approach.

Despite its global ambitions, Starlink has encountered recent challenges in its African operations, experiencing subscriber declines in key markets like Nigeria, Kenya, and Rwanda. These declines are attributed to rising costs and increased competition from local providers. In Nigeria, Starlink saw a 9–14% reduction in active users between late 2024 and early 2025 following significant increases in monthly fees and hardware prices, alongside local economic pressures and network congestion. Similarly, Kenya experienced a drop of over 2,000 users as consumers reverted to more affordable and faster local ISP options. In Rwanda, subscription declines were smaller, mainly due to reduced subsidies and slower rural deployments. The core challenge across Africa remains balancing affordability with network growth in a competitive broadband market.

The upcoming direct-to-cell technology offers a potential solution for Starlink to rebalance its business model in Africa. By removing the need for expensive user terminals, which currently cost around ₦590,000 ($400–$500) with monthly fees exceeding ₦75,000 ($50+), direct-to-cell connectivity would drastically reduce entry costs. This allows users to connect via their existing 4G smartphones, eliminating hardware barriers and enabling faster, cheaper expansion through “cell towers in orbit.” This approach reduces reliance on ground infrastructure, allowing for more efficient reach into rural and remote communities. Ultimately, it opens the door for tiered pricing strategies, positioning dish-based broadband as a premium home service while introducing mobile satellite access at a lower monthly rate better suited to African consumers’ spending power.

The introduction of direct-to-phone services also presents new regulatory challenges in markets where Starlink currently operates. For instance, in Nigeria, Starlink holds a Nigerian Communications Commission (NCC) license for satellite broadband, but offering direct-to-phone services would likely require additional authorization under separate mobile connectivity frameworks. This technology poses both risks and opportunities for African mobile operators like MTN, Airtel, and Vodacom, potentially bypassing terrestrial infrastructure and challenging existing business models. Collaboration between regulators, telecom firms, and SpaceX could facilitate the expansion of digital access across Africa, though it will necessitate overcoming significant technical and policy hurdles.