SpaceX is exploring ways to enter the US wireless market, with a potential acquisition of EchoStar’s Boost Mobile emerging as one route to accelerate its ambitions.
The company, led by Elon Musk, has held discussions with EchoStar and Chairman Charlie Ergen about acquiring Boost Mobile or gaining access to its network, according to a report by The Washington Post on Monday.
The move could help SpaceX establish a fourth national wireless carrier and compete with AT&T, Verizon Communications and T-Mobile.
SpaceX shares SPCX rose more than 2% on Monday, trading slightly above their $135 initial public offering price.
Boost Mobile could accelerate SpaceX’s wireless ambitions
SpaceX has been expanding its Starlink satellite internet business and is looking to extend its reach into mobile communications.
However, its satellite network does not yet have the terrestrial infrastructure and low-band spectrum needed to provide comprehensive wireless coverage.
Starlink had 13.6 million users at the end of the third quarter, an increase of about 90% from a year earlier.
The service operates more than 11,000 satellites across over 170 countries, generating $5.2 billion in third-quarter revenue and profit margins above 65%.
Boost Mobile could provide a faster entry into the wireless market.
EchoStar’s service had more than 7.5 million subscribers at the end of 2025 and operates as a mobile virtual network operator (MVNO).
Rather than owning its own wireless infrastructure, Boost leases network capacity from AT&T and T-Mobile.
However, transferring those agreements to SpaceX could prove difficult.
Barclays analyst Kannan Venkateshwar said the network-leasing agreements might not transfer to a new owner without approval from AT&T and T-Mobile.
He added that the major carriers had repeatedly refused SpaceX network access, making it uncertain whether they would agree to transfer the Boost arrangements.
SpaceX’s options include partnerships and acquisitions
The Boost Mobile discussions follow reports that SpaceX has explored other ways to expand its wireless capabilities, including buying access to cellular towers.
The company has reportedly been in talks with Crown Castle, while American Tower has also indicated that it is discussing potential opportunities with SpaceX.
BNP Paribas analyst Sam McHugh said the latest report suggested a possible shift towards an MVNO arrangement, although SpaceX could pursue multiple options.
Citi analyst Michael Rollins has also identified an outright acquisition of a telecommunications company as a potential route.
Such a deal could bring forward the launch of Starlink Mobile by several years, although acquiring a larger business would be a substantial undertaking.
An acquisition of EchoStar could provide SpaceX with access to additional spectrum and Dish Wireless assets.
However, Dish Wireless remains in Chapter 11 proceedings, while EchoStar’s satellite television business emerged from bankruptcy protection last month.
EchoStar Chairman Charlie Ergen acknowledged in August that the company had struggled to make its wireless business successful.
He said EchoStar had flexibility to improve the business through partnerships or a merger.
Telecom stocks react as investors assess competitive threat
The prospect of SpaceX entering the wireless market has kept investors focused on the potential impact on established telecom operators and infrastructure providers.
AT&T and T-Mobile shares initially opened lower on Monday but recovered, trading up 0.12% and 1.77%, respectively, in midday trading. Verizon shares also rebounded after opening lower, gaining 0.64%.
Wireless tower operators had a weaker session.
Crown Castle shares declined 2.14%.
Crown Castle shares had gained around 30% over the previous month amid expectations that SpaceX could become a new tenant.
EchoStar was among the early beneficiaries of the report, rising 4.6% in early trading before its gains narrowed.
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