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SpaceX is in talks to buy EchoStar’s wireless service Boost Mobile or gain access to its network, the Washington Post reported on Monday, November 2. The newspaper cited people familiar with the talks. Boost Mobile’s network is leased from AT&T and T-Mobile.
SpaceX has held talks with EchoStar in recent months about launching its own wireless service through a deal with the company. Neither SpaceX nor EchoStar replied right away to Reuters’ requests for comment. Neither company has confirmed the report.
The move would support SpaceX’s plan to build a hybrid mobile network called Starlink Mobile that joins its satellite constellation with ground-based infrastructure. The aim is to challenge US wireless giants AT&T, Verizon, and T-Mobile.
Buying Boost Mobile or using its network could give SpaceX a ready-made subscriber base and a sales channel. SpaceX would also gain customers who already pay for mobile service each month. EchoStar had 7.38 million wireless subscribers at the end of the second quarter, mostly Boost Mobile and Gen Mobile customers.
The report said Elon Musk discussed the deal himself and met EchoStar chairman Charlie Ergen last month. Any deal may need approval from AT&T and T-Mobile. Boost Mobile’s current network-leasing deals may not move to a new owner without the carriers’ consent.
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EchoStar shares rose about 3.4% in premarket trading. T-Mobile slipped 2%, while AT&T and Verizon also edged lower. Telecom stocks had already come under pressure after SpaceX’s spectrum deal with EchoStar, as investors weighed the threat of a satellite-powered rival.
Analysts see big challenges. A network aiming to become the fourth-largest US carrier would need heavy spending on ground infrastructure, customer service, handset subsidies, and promotions.
The Big Three already run extensive operations in these costly areas. Nothing is final, and the talks could still change. Investors will watch for any official word from SpaceX or EchoStar in the coming days.