SpaceX's next rival may be AT&T and Verizon as Elon Musk eyes fourth US mobile operator in Boost Mobile deal
SpaceX is exploring a move into the US wireless market through a potential acquisition of EchoStar's Boost Mobile business or an agreement to use its network, a deal that could bring Elon Musk's satellite internet ambitions into direct competition with established telecom operators AT&T, Verizon and T-Mobile.
The discussions, which have been under way for several months, centre on how SpaceX could establish its own mobile service by combining satellite connectivity with traditional terrestrial networks, according to a Reuters report citing The Washington Post.
Elon Musk met EchoStar Chairman Charlie Ergen last month as the companies explored possible arrangements.
Acquiring Boost Mobile could give SpaceX an immediate foothold in the highly competitive US wireless market, including an existing subscriber base and an established distribution network.
EchoStar's wireless operations had 7.38 million customers at the end of the second quarter, with Boost Mobile and Gen Mobile accounting for the bulk of its subscribers.
However, a potential acquisition could come with contractual complications. Boost Mobile currently relies on network access agreements with AT&T and T-Mobile. These arrangements may not automatically transfer to a new owner, meaning SpaceX could require approval from the two carriers to retain access to their infrastructure, The Washington Post reported.
The alternative would be to negotiate an agreement that allows SpaceX to use EchoStar's network without purchasing the wireless business outright.
SpaceX is working towards building a nationwide mobile operator under the proposed Starlink Mobile brand, Reuters reported. The service is expected to combine its constellation of satellites in low Earth orbit with ground-based telecommunications infrastructure.
The strategy would allow SpaceX to extend connectivity beyond the reach of conventional mobile networks while competing for customers in a market dominated by AT&T, Verizon and T-Mobile.
A Boost Mobile acquisition could help shorten the path to commercial expansion by providing an existing customer base, retail distribution and a recognised wireless brand. It could also give SpaceX a platform from which to develop its own network and mobile offerings.
The potential wireless expansion comes as SpaceX pursues an ambitious long-term target of generating $1 trillion in revenue. MarketWatch reported that the company is seeking to establish itself as the fourth nationwide mobile operator in the US, in a market with an estimated opportunity of about $235 billion.
Separately, Musk has reportedly held exploratory discussions with telecommunications tower operator Crown Castle, suggesting that SpaceX may also be examining the infrastructure required to support a broader mobile network.
Markets reacted to the reports ahead of Monday's opening bell. EchoStar shares rose approximately 3.4% in pre-market trading, while T-Mobile fell around 2%. AT&T and Verizon shares also edged lower.
Sayantani Biswas is an assistant editor at Livemint with seven years of experience covering geopolitics, foreign policy, international relations and global power dynamics. She reports on Indian and international politics, including elections worldwide, and specialises in historically grounded analysis of contemporary conflicts and state decisions. She joined Mint in 2021, after covering politics at publications including The Telegraph. <br> She holds an MPhil in Comparative Literature from Jadavpur University (2019), with a specialisation in postcolonial Latin American literature. Her research examined economic nationalism through Eduardo Galeano’s Open Veins of Latin America. She also writes on political language, cultural memory and the long shadows of conflict. <br> Biswas grew up in Durgapur, an industrial town in West Bengal shaped by migration, which drew families from across India to the Durgapur Steel Plant. As the only child in a joint family, she spent years listening—almost obsessively—to her grandparents’ testimonies of struggle, fear and loss as they fled Bangladesh during the Partition of 1947. This formative exposure to lived historical memory later converged with her training in Comparative Literature, equipping her to analyse socio-economic structures and their reverberations. <br> Outside the newsroom, she gravitates towards cultural history and critical theory, returning often to texts such as Paulo Freire’s Pedagogy of the Oppressed. As a journalist, she is committed to accuracy, intellectual rigour and fairness, and believes political reporting demands not only clarity and speed, but historical depth, contextual precision, and a disciplined resistance to spectacle.
Catch all the Business News , Corporate news , Breaking News Events and Latest News Updates on Live Mint. Download The Mint News App to get Daily Market Updates.
More
✕
Wait for it…
Oops! Looks like you have exceeded the limit to bookmark the image. Remove some to bookmark this image.