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Business·1 min read

SpaceX Eyes Boost Mobile Deal as Shortcut to Becoming a Carrier

SpaceX has reportedly held talks with EchoStar about buying Boost Mobile or tapping its network, a possible shortcut to launching its own wireless service.

Starlink satellite dish and smartphone symbolizing SpaceX's possible move into the mobile carrier market via Boost Mobile.
Image: Engadget

SpaceX has reportedly held talks with EchoStar, the parent company of Boost Mobile, about a deal that could give Elon Musk's company a quick route into the US mobile carrier business. The discussions, which took place over recent months, could allow SpaceX to launch its own wireless service on the existing network.

According to the report, the arrangement could take one of two forms: SpaceX could acquire Boost Mobile outright, or it could gain access to the cell network Boost uses. That network is leased from AT&T and T-Mobile.

A possible hurdle

The leasing arrangement is where the plan could stumble. A SpaceX-branded mobile service would reportedly need approval from AT&T and T-Mobile, the carriers whose infrastructure Boost relies on. The report also says that the major carriers, AT&T, T-Mobile and Verizon, have already turned down requests from Musk for access to their networks to run a separate SpaceX service.

No deal has been confirmed.

Part of a longer pattern

The talks fit a trend that has been visible for some time. Last year SpaceX bought spectrum licenses from EchoStar worth $2.6 billion, which are meant to improve the 5G connections of its Starlink network. More recently, Starlink confirmed its plans to become a "major mobile carrier in the US" and made another major acquisition aimed at that goal.

For consumers, a SpaceX-run carrier would add a new competitor to a market dominated by three large players. Buying Boost Mobile would hand SpaceX an existing customer base and network arrangement rather than forcing it to build both from scratch, which is why the option is seen as a shortcut.

Whether the carriers whose networks Boost depends on would agree to such a change remains the key open question.

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Tags:spacexboost mobileechostarstarlinkmobile carrier

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