SpaceX plans to launch Starlink Generation 2 satellites in 2027, aiming for 5G-level experience

SpaceX recently revealed in documents submitted to the Federal Communications Commission (FCC) that it plans to launch a second-generation cellular Starlink system in 2027, aimed at achieving a "significantly enhanced" satellite direct-to-phone service that provides an experience close to ground-based 5G networks. This technological upgrade is closely related to a key acquisition the company made last September. SpaceX has signed an agreement with EchoStar to acquire its radio frequency spectrum resources for approximately $17 billion to upgrade its cellular Starlink service. The transaction is expected to be completed by November 30, 2027, allowing SpaceX to take on EchoStar's approximately $2 billion debt cash interest payment obligations. The documents indicate that SpaceX has the option to complete the acquisition early but will incur higher costs. SpaceX CEO Elon Musk previously stated last fall that realizing this service requires a "time frame of about two years" and that the challenges mainly focus on two aspects: on one hand, mobile manufacturers need to complete hardware adaptations to integrate EchoStar's spectrum reception chips that support the 1.9GHz and 2GHz bands into terminal devices; on the other hand, SpaceX needs to launch next-generation satellites that can utilize the newly added spectrum resources, which includes a new system of 15,000 satellites pending approval from the FCC. Achieving 5G-level satellite direct connection by 2027, system capacity will increase a hundredfold Currently, SpaceX, in collaboration with T-Mobile, has provided the first-generation cellular Starlink service in the United States. This technology mainly targets areas with weak cellular network coverage, providing users with basic data connections, including video calls, message transmission, and application access, but its available bandwidth remains relatively limited. In contrast, the planned second-generation cellular Starlink system is expected to achieve a connection experience close to ground-based 5G networks. SpaceX noted in its technical documents that the total capacity of the new generation system will exceed 100 times that of the first-generation satellite network, and data throughput capacity will also increase by more than 20 times. David Goldman, SpaceX's Vice President of Satellite Policy, and two other executives stated in the documents: "But this is just the beginning: SpaceX has invested in spectrum resources to enable the launch of a significantly enhanced second-generation direct-to-device system in 2027." This suggests that it is shifting resources and focus towards the second-generation system. The new generation system is expected to achieve significant breakthroughs in coverage, connection speed, and system capacity, aiming to align satellite communication services with the experience of ground mobile networks. If this layout progresses smoothly, it will strengthen SpaceX's competitive advantage in the satellite communication market and pose a direct challenge to traditional telecommunications and emerging low-orbit constellation operators. As the 2027 time window approaches, the spectrum integration process and system development progress will become key variables affecting the implementation of its strategy