SpaceX is considering buying Boost Mobile from EchoStar, according to a report from the Washington Post. If the deal goes through, it would help the Elon Musk-owned company build a hybrid cellular-satellite network that could help propel it to fourth place among the top wireless providers in the United States.
The space launch company has moved into cellular connectivity, rolling out satellite access to T-Mobile subscribers in 2024. Last year, SpaceX purchased $17 billion worth of wireless spectrum from EchoStar for cellular services, which could help the company’s Starlink service reach inside buildings, for example, something it currently struggles with.
“This is the final critical piece of the spectrum puzzle that SpaceX needs to provide comprehensive phone coverage in America,” Musk said on X at the time of the spectrum acquisition. Yet if Musk is still looking to buy access to terrestrial networks, this apparently wasn’t the last play.
SpaceX CEO Elon Musk reportedly spoke directly with EchoStar Chairman Charlie Ergen in October about acquiring Boost Mobile, the virtual mobile network operator. EchoStar has approximately 7.5 million customers between Boost Mobile and Gen Mobile, its other mobile service offering.
Musk has also reached out to AT&T, T-Mobile and Verizon to purchase capacity on their networks. All three have rejected Musk, and they could still have a say in SpaceX’s acquisition of Boost Mobile. Boost does not operate its own towers, but rather leases capacity from AT&T and T-Mobile, which may have to approve such a deal. Sources speaking to the Post said network leases are generally non-transferable.
The big three providers each have more than 100 million subscribers, dwarfing Boost Mobile. But while the acquisition would give SpaceX an immediate boost in subscribers, the real value of the deal would be giving the company access to terrestrial cellular networks.
Accessing Boost Mobile’s leased towers would significantly expand coverage — Boost currently covers most of the contiguous 48 states in the U.S. — allowing Starlink to cover devices when they’re outdoors and rely on cell towers to manage devices when Starlink signals can’t reach them.
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