SpaceX has a new idea, but AT&T and T-Mobile would call the shots

SpaceX reportedly wants to buy Boost Mobile.

spacex buying boost mobile
The plan is at the mercy of AT&T and T-Mobile | Image by SpaceX
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SpaceX is apparently still hashing out how to get Starlink Mobile off the ground. It was reported a few days ago that it might buy Dish's abandoned 5G equipment. Before that, we had heard about other possibilities, such as a partnership with Charter or the acquisition of T-Mobile or Verizon.

SpaceX itself has only ever spoken about leveraging its Starlink broadband network to deploy a hybrid network. Yet another theory is now being floated.

SpaceX might scoop up Boost Mobile


SpaceX is reportedly considering purchasing Boost Mobile or accessing its network. Boost Mobile is EchoStar's mobile virtual network operator (MVNO), which came very close to becoming a nationwide mobile network operator (MNO).

When Dish sold its spectrum, it left its 5G infrastructure at the mercy of tower companies and struck deals with AT&T and T-Mobile to lease network capacity for Boost.

SpaceX has been in talks with EchoStar for several months as it explores ways to deploy its own terrestrial network.

A deal with Boost would give SpaceX a subscriber base and a distribution network, two things that would otherwise take considerable time to build. At the end of Q2, EchoStar had 7.38 million wireless customers through Boost Mobile and Gen Mobile.

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SpaceX CEO Elon Musk is handling the deal personally and huddled with EchoStar chairman Charlie Ergen last month.

There's a hitch, though: a deal cannot go through without approval from AT&T and T-Mobile.

Which route should SpaceX take
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Back to square one



AT&T and T-Mobile, and Verizon, for that matter, are adamant about not giving SpaceX access to their networks. As such, finding a backdoor into their networks isn't going to work either.

SpaceX has been scooping up spectrum and is reportedly also in talks with tower companies as Musk looks to launch a cellular network within the next two to three years.

Most analysts, along with the incumbent carriers, have predicted that it's going to take much longer.

What does SpaceX actually want to do?


While SpaceX appears to be moving toward building a modern cellular network that will use a combination of satellites and land-based infrastructure to provide cellular service, every new report says something different. For instance, analysts recently suggested that SpaceX might buy Dish Wireless' abandoned 5G radios and antennas from tower companies like American Tower, which now owns the equipment.


Boost Mobile was on its way to becoming the fourth cellular network before a Federal Communications Commission (FCC) probe into EchoStar overs it failure to meet build-out requirements led to spectrum sales to AT&T and SpaceX. Dish Wireless then defaulted on payments to tower companies, claiming that the spectrum sale freed it from those obligations. The company was subsequently sued by tower companies.

The network gear has fallen into the hands of tower companies, which are free to do whatever they want with it. Luckily for SpaceX, Dish Wireless gear supports the 2GHz and 800MHz spectrum SpaceX is buying from EchoStar and Grain.

Wrong read?


With AT&T and T-Mobile unlikely to relinquish control of the industry, a deal with Boost seems unlikely. TMF Associates President Tim Farrar doesn't think SpaceX is making a play for Boost Mobile. He believes SpaceX is still after Dish Wireless' network. Boost might be spun off to Dish CEO Charlie Ergen's special purpose acquisition company, Conx, which would give Musk a clearer path to the network infrastructure without any purchase complications.


Of course, Musk may be evaluating different options. Building out a network and securing the necessary financing are only part of the equation. Establishing a retail presence and acquiring a sizeable customer base are uphill tasks.

AT&T, T-Mobile, and Verizon have a combined retail presence of around 17,000 outlets, according to Wave7 Research Principal Jeff Moore. Prepaid brands have another 16,000 outlets.

Purchasing Boost would be a more straightforward path to reaching wireless customers.

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