SpaceX asked to buy T-Mobile
Forget Deutsche Telekom's rumored merger with T-Mobile; something else could be brewing in the industry.
SpaceX has only one option after being denied an MVNO. | Image by PhoneArena
AT&T, T-Mobile, and Verizon have all flatly refused to strike an MVNO (Mobile Virtual Network Operator) deal with SpaceX's Starlink. That's unlikely to force Elon Musk to abandon his dream of serving both rural and urban customers, though. Maybe it's time for the company to skip the polite MVNO negotiations altogether and just buy a facilities-based provider.
...we will compete to be the preferred connectivity experience to our customers no matter where they are located, whether in rural, suburban, or urban areas.
SpaceX, May 2026
No MVNO, no problem
Just ahead of SpaceX's stock-market debut on Friday, Wolfe Research analysts suggested that Starlink should buy AT&T, T-Mobile, or Verizon. The research firm views that as the best outcome for the US telecom industry.
Senior analyst Peter Supino said the recommendation hinges on two assumptions. First, if Starlink Mobile were to become a telecom operator, it would increase the number of players to four, thereby increasing competition and reducing profitability.
Second, if the Big Three hold the line and refuse to partner with it on an MVNO, Starlink would have no choice but to build its own network, resulting in a four-competitor structure.
Second, if the Big Three hold the line and refuse to partner with it on an MVNO, Starlink would have no choice but to build its own network, resulting in a four-competitor structure.
A better outcome for everybody, from a profitability perspective, would be that that doesn’t happen and a way for that not to happen is to actually buy a network
Peter Supino, Wolfe Research's senior analyst, June 2026
T-Mobile is the perfect match
Supino believes Starlink would benefit the most by buying T-Mobile. That's primarily because the carrier doesn't have a wireline network, which Starlink has no use for. The second reason is that Starlink would likely bid for T-Mobile's parent company, Deutsche Telekom, giving it an entry point into Germany and Austria as well.
What should Elon Musk do?
"Not out of the question"
While SpaceX hasn't recently said anything about buying a carrier, Elon Musk did say in late 2025 that he wouldn't rule out buying Verizon.
However, he also pointed out that Starlink wouldn't put other carriers out of business, as they hold a lot of spectrum.
While SpaceX has purchased mid-band spectrum from EchoStar, it amounts to just 65 MHz of airwaves and is scattered. However, SpaceX can participate in the ongoing AWS-3 auction for more spectrum or snap up the 700 MHz, AWS-3, CBRS, C-Band, MVDDS, and millimeter wave licenses EchoStar wants to offload.
On the other hand, SpaceX could use its spectrum as a bargaining chip to enter into an MVNO agreement with one of the Big Three. The Besen Group's founder, Alex Besen, predicts that the company could reach 20 million US subscribers in its first five years.
There is no way Starlink Mobile is going to focus on the key niche segment. There's no way. They're building this constellation, right? They will become the first global mobile satellite operator eventually.
Alex Besen, The Besen Group's founder, May 2026
Once SpaceX expresses an intention to form an MNO (Mobile Network Operator) of its own, one of the Big Three will likely cave rather than let a new rival spring up.
Once a fourth mobile network looks inevitable, an MNO will grant an MVNO in order to earn some money on the path to the inevitable.
Peter Supino, Wolfe Research's senior analyst, May 2026
Cornering a wildcard
The reluctance of the industry heavyweights to form an MVNO with SpaceX suggests that they already view it as a threat. That theory is strengthened by the fact that they have even formed a satellite partnership to prop up SpaceX's rivals.
Roger Entner, founder of Recon Analytics, believes that Musk would rather build a telecom company from scratch than scoop up a Big Three company.
If he wants to be an MNO, he will build it from scratch.
Roger Entner, Recon Analytics founder, June 2026
However, the one thing you know with Musk is that you don't know anything. The world's first trillionaire is reportedly already unhappy with how much SpaceX is getting from the satellite partnership with T-Mobile. SpaceX has also criticized T-Mobile and Verizon for holding customers hostage.
Twitter was also a mess, but Musk bought it anyway. How are AT&T, T-Mobile, and Verizon any different if Musk sets his sights on cellular dominance?
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