SpaceX owned by Elon Musk, announced on Monday that it will acquire wireless spectrum licenses from EchoStar for about $17 billion, a move seen as pivotal for expanding Starlink’s emerging 5G connectivity business.

As part of the agreement, EchoStar’s Boost Mobile customers will also gain access to Starlink’s direct-to-cell service, extending coverage to areas currently lacking network service.

The spectrum deal will allow SpaceX to develop and deploy advanced laser-connected satellites designed to increase mobile network capacity by more than 100-fold.

According to SpaceX President and COO Gwynne Shotwell, the agreement is a major step toward ending mobile dead zones worldwide.

“With exclusive spectrum, SpaceX will develop next-generation Starlink Direct to Cell satellites, which will have a step change in performance and enable us to enhance coverage for customers wherever they are in the world,” she said.

EchoStar stock soared 19% in early trading after the deal was announced, while shares of AT&T and T-Mobile slipped more than 3% and Verizon dropped over 2%.

The development comes as mobile data use continues to climb.

Since 2020, SpaceX has deployed more than 8,000 Starlink satellites into low-Earth orbit, building a global network now used by militaries, transportation operators, and rural households.