The Zhitong Finance App learned that SpaceX (SPCX.US) is in negotiations with Echo Star Communications (ECHO.US) to acquire its wireless service brand Boost Mobile or obtain its network access rights. If the deal is successful, SpaceX will gain about 7.38 million wireless users and existing distribution platforms in one fell swoop, paving the way for it to build a hybrid satellite and terrestrial network through Starlink Mobile (Starlink Mobile) and challenge the three major US wireless operators.
According to reports, SpaceX is in negotiations with Echo Star Communications to acquire Boost Mobile, a wireless service owned by the latter, or obtain its network access rights. Boost Mobile currently leases networks from AT&T (T.US) and T-Mobile (TMUS.US). The consideration of the deal was not disclosed, and neither SpaceX nor Echo Star immediately responded to requests for comment.
The report said that SpaceX has been discussing with Echo Star Communications in recent months to launch its own branded wireless service through a deal. People familiar with the matter revealed that Musk himself participated in the deal discussions and met with Echo Star Communications Chairman Charlie Egan last month. After the news was announced, Echo Star Communications's stock price rose about 7% in the premarket, and T-Mobile, AT&T, and Verizon (VZ.US) all fell more than 2%.
For SpaceX, acquiring Boost Mobile or connecting to its network means directly acquiring an existing user base and distribution platform. By the end of the second quarter, Echo Star had 7.38 million wireless users, mainly Boost Mobile and Gen Mobile customers. This will be an important springboard for SpaceX to accelerate its wireless plans.
But the deal still faces real hurdles. The report pointed out that Boost Mobile's existing network lease agreement may not be transferable to the new owner without approval from AT&T and T-Mobile, so the proposed service may require approval from these two operators. This also means that SpaceX's wireless ambitions depend not only on negotiations with Echo Star Communications, but also on the restructuring of existing network leasing relationships.
Strategic main line: spectrum, satellite and ground station “combo punch”
Acquiring Boost Mobile is only part of SpaceX's wireless strategy. Its larger goal is to build a hybrid mobile network combining satellite and terrestrial infrastructure to challenge AT&T, Verizon, and T-Mobile through Starlink Mobile.
At the spectrum level, SpaceX previously purchased an 800 MHz low-band spectrum license for about $8 billion. Low-frequency signals have strong penetration and wide coverage, suitable for deep coverage in indoor and remote areas. Previously, SpaceX also obtained approximately 65MHz of national spectrum from Echo Star Communications, covering the AWS-3, AWS-4, and H-block bands. The FCC has approved related transactions and allowed flexible deployment in terrestrial, spatial, or hybrid architectures.
Analysts estimate that after the transaction, SpaceX held a total spectrum of about 80 MHz. Although it is still far less than the three major operators, the band functions are highly complementary: the 2GHz band is responsible for core capacity, the 800MHz low frequency is responsible for coverage and indoor penetration, and the AWS-3 uplink enhances the uplink capability of the device to the network.
At the satellite level, the FCC has approved SpaceX's second-generation Starlink Mobile constellation, allowing it to launch up to 15,000 dedicated satellites. SpaceX President Gwynne Shotwell has stated that the company plans to launch a new generation of satellites in 2027, with the goal of providing commercial services by the end of 2027 or the beginning of 2028, and that service performance based on next-generation satellites and Echo Star communication spectrum will be “100 times better” than current services.
At the terrestrial network level, SpaceX is in talks with infrastructure companies such as CCI.US (CCI.US), American Electric Tower (AMT.US), and Vertical Bridge to obtain at least 80,000 sites across the US to deploy cellular equipment. Musk also proposed a more cost-effective idea: install small cellular radios on existing Starlink user terminals and use terminals scattered throughout residential and commercial buildings to provide connections to nearby mobile phones. If this idea works, it is expected to reduce capital expenses for terrestrial network construction.
Notably, SpaceX has previously tried leasing the networks of the three major carriers as a mobile virtual network operator (MVNO), but has reportedly received no positive response. This is seen as one of the reasons why it switched to building its own terrestrial network and seeking to acquire user channels.
Market impact and implementation challenges
SpaceX's continuous action has put pressure on telecom stocks. Investors are evaluating how a new satellite-powered wireless competitor will change the US mobile communications market landscape. SpaceX executives previously publicly stated that their goal is to become a major mobile operator in the US and that they aim to get a share of the three major operators' total revenue of about 600 billion US dollars each year.
However, analysts and industry experts pointed out that SpaceX still faces quite a few challenges in building a network that is expected to become the fourth largest wireless operator in the US. The rocket and satellite company is likely to need to invest heavily in ground infrastructure, customer service, mobile phone subsidies, and promotions — these are the costly areas of the wireless business, and the three major operators already have extensive operating experience in these areas.
If the deal to acquire Boost Mobile or connect to its network finally comes to fruition, SpaceX will simultaneously hold spectrum, satellite, terrestrial stations, and user channels to form a “world in one” wireless network puzzle. However, whether this puzzle can be integrated into a profitable nationwide network still depends on regulatory approval, transfer of lease agreements, and execution of ground operations.