SpaceX Might Just Buy Boost Mobile to Kickstart Its Own Cell Service

The Washington Post, the Verge, Reuters, and Investor’s Business Daily contributed to this report.

Elon Musk wants to be your cell carrier. And he might just buy his way in. According to The Washington Post, SpaceX has been talking with EchoStar about acquiring Boost Mobile or at least getting access to its network. The goal? Launch a signature wireless service that combines Starlink’s satellite constellation with good old-fashioned ground infrastructure.

Musk reportedly met with EchoStar chairman Charlie Ergen last month to discuss the idea. Neither SpaceX nor Boost Mobile would comment. But the market noticed. EchoStar shares rose about 3.4% in premarket trading. T-Mobile slipped 2%, and AT&T and Verizon also edged lower. Investors are clearly nervous about a new competitor backed by the world’s richest man.

Here’s the rub: Boost Mobile doesn’t own its network. It leases capacity from T-Mobile and AT&T. So any deal might need the blessing of those two carriers, since existing agreements may not transfer to a new owner. That’s a significant hurdle. But if SpaceX can clear it, the payoff is huge. EchoStar had 7.38 million wireless subscribers at the end of the second quarter, mostly Boost and Gen Mobile customers. That’s a ready-made base and distribution platform.

SpaceX hasn’t been shy about its mobile ambitions. The company bought wireless spectrum licenses from EchoStar last year and recently snapped up a portfolio of low-band spectrum that could let Starlink Mobile’s signal penetrate buildings. Last month, Bloomberg reported SpaceX was in talks to access at least 80,000 cell sites across the US. It’s building a hybrid satellite-terrestrial network, and it wants to take on the Big Three.

The challenges are real. Analysts point out that SpaceX would need to invest heavily in ground infrastructure, customer service, handset subsidies, and promotions – costly areas where AT&T, Verizon, and T-Mobile already have massive operations. Becoming the fourth-largest wireless carrier in the US isn’t cheap. But Musk has never been afraid of expensive bets. And with Starlink already providing internet service in 205 countries, the pieces are falling into place.