Telecom

SpaceX Eyes Boost Mobile as a Shortcut Into the Phone Business

co-produced by AI02. November 2026, 15:15

A train of Starlink satellites crossing the early morning sky — A train of Starlink satellites crossing the sky. © Forest Katsch / Unsplash

If the big players won’t let you in, buy the small one: SpaceX is in talks with EchoStar to acquire the wireless provider Boost Mobile or at least gain access to its network, according to The Washington Post. Elon Musk reportedly met with Charlie Ergen, EchoStar’s chairman, in October. Neither company has confirmed the talks, but EchoStar shares still rose about 4 percent in premarket trading.

Turned Away by AT&T, Verizon and T-Mobile

The detour has a reason. According to the reports, SpaceX had earlier approached all three major U.S. carriers about using their networks as a mobile virtual network operator, or MVNO. Verizon, AT&T and T-Mobile reportedly said no. That is hardly surprising, since SpaceX wants to use Starlink Mobile to win over their customers.

Boost Mobile would be the back door. EchoStar’s budget brand has about 7.4 million subscribers together with Gen Mobile, runs its own 5G core and relies mainly on AT&T’s network, with a separate network agreement with T-Mobile. Boost was originally meant to become America’s fourth major carrier after the T-Mobile and Sprint merger. Under pressure from the Federal Communications Commission, however, EchoStar sold large parts of its spectrum to AT&T and SpaceX last year and became a tenant on other networks itself.

That is the catch. According to people familiar with the negotiations, such a network lease typically cannot be transferred to a new owner without the major carrier’s permission, which would give AT&T and T-Mobile considerable say over any deal.

Billions for Airwaves

Boost would be the next piece of an expensive puzzle. In 2025, SpaceX agreed to buy spectrum licenses from EchoStar for about $17 billion (about €15 billion). In October, it added Grain Management’s nationwide 800 MHz spectrum for an estimated $8 billion (about €7 billion). The low frequencies pass through walls more easily and are meant to deliver indoor coverage, where satellite connections have struggled. SpaceX is also reportedly seeking leases on about 80,000 cell tower sites, at an estimated cost of $6 billion (about €5.4 billion).

The road map is set. The F.C.C. has approved up to 15,000 second-generation mobile satellites, which are scheduled to fly on Starship starting in 2027. SpaceX plans to switch on its own service in early 2028. On the company’s latest earnings call, Bret Johnsen, its chief financial officer, said SpaceX would use its expanded spectrum portfolio to grow its direct-to-cell service „and become a major mobile carrier.“

Why Wireless Looks So Tempting

The U.S. wireless market is worth about $235 billion (about €211 billion), according to the research firm MoffettNathanson. It is a business of predictable monthly revenue and an enormous customer base, the same model that turned Starlink into SpaceX’s cash cow. According to the latest quarterly report, Starlink has about 13.6 million broadband subscribers, and its existing satellite-to-phone service has more than 22 million monthly users through partners such as T-Mobile. In the third quarter, SpaceX posted revenue of $14.6 billion (about €13.1 billion) and a profit of $4.4 billion (about €4 billion).

Mr. Musk is thinking even bigger. „We do see a clear path to several hundred billion dollars a year in connectivity revenue,“ he said on the call. SpaceX also has a strategic edge no traditional carrier can match: It can combine satellites, a ground network and its own spectrum, closing rural dead zones where cell towers never pay off. Analysts also expect bundles of Starlink internet, mobile service and xAI’s Grok chatbot.

The incumbents are gearing up. AT&T, Verizon and T-Mobile formed a joint satellite venture in May, while AST SpaceMobile and Amazon are pushing into the market as well; Amazon’s acquisition of Globalstar came with a deal with Apple. When SpaceX announced the Grain deal, the three big carriers lost a combined $45 billion in market value in a single day.

Cell Towers Can’t Be Built From Orbit

Several industry experts doubt the plan will work. According to Fierce Network, Craig Moffett and Julie Zhu of MoffettNathanson have questioned whether Starlink can compete in U.S. wireless without an MVNO deal with one of the big carriers. Dimitris Mavrakis of ABI Research sees the real problems on the ground, arguing that „getting power to them and finding the optimal location are the biggest problems“ for thousands of small cells. Joe Madden of Mobile Experts called the plan „extremely challenging“ on the business side, since SpaceX would need to „negotiate with each building owner, one at a time.“ Rich Young, a Verizon spokesman, dismissed SpaceX’s spectrum in October as „just empty airwaves.“