SpaceX is in talks to buy Boost Mobile or gain access to its network as Elon Musk’s company moves toward launching its own US mobile service, Reuters reported, citing The Washington Post.
The discussions with EchoStar, Boost’s parent company, have been under way for several months. Musk reportedly met EchoStar chairman Charlie Ergen last month to discuss a possible arrangement that could give SpaceX a foothold in the wireless business.
But buying Boost would not necessarily give SpaceX unrestricted access to its network. Boost relies on capacity leased from AT&T and T-Mobile, and those agreements may require the carriers’ approval before transferring to a new owner. SpaceX could therefore need permission from two companies it hopes to compete against.
The proposed Starlink Mobile service would combine satellite connectivity with infrastructure on the ground. SpaceX has already purchased wireless spectrum licenses from EchoStar and recently acquired low-band spectrum that could help its signals reach inside buildings.
The company has also reportedly discussed gaining access to at least 80,000 US cell sites. Those efforts suggest it is assembling the ground infrastructure to support its satellite ambitions, with Boost offering another potential route into the market.
A deal could provide an existing customer base and distribution operation. EchoStar had 7.38 million wireless subscribers at the end of the second quarter, mainly through Boost Mobile and Gen Mobile.
The financial demands would go well beyond securing an agreement. SpaceX would face substantial spending on infrastructure, customer service, handset subsidies and promotions, areas where the three major US carriers already have extensive operations.
Investors reacted to the news on Monday. EchoStar shares rose about 3.4% before the market opened, while T-Mobile fell 2%. AT&T and Verizon also edged lower.
SpaceX’s broader ambition is to become a fourth nationwide mobile operator, entering a US wireless market estimated at roughly $235 billion. Separate reporting has also described exploratory discussions between Musk and tower operator Crown Castle, another indication of the company’s interest in securing terrestrial infrastructure.
