SpaceX moves toward a shake-up of the US wireless market
SpaceX is building the pieces to become a major US wireless carrier, Axios and The Independent report. It has held talks with EchoStar about buying Boost Mobile or gaining access to its network, according to a Washington Post report cited by Axios. The industry is now led by three big carriers.
SpaceX could build its own network on the ground and buy available spectrum, Axios reports. The moves could let it go around the big carriers or bring them to the table for a deal on wholesale access.
Verizon, AT&T and T-Mobile have all rebuffed Musk's efforts to gain access to their networks, Axios reports, citing The Washington Post.
SpaceX has agreed to spectrum deals worth billions of dollars, Axios says. They include low-band spectrum useful for reaching customers indoors.
“For the first time, there is an entity capable of scaring investors in the traditional big three,” said Blair Levin, a former Federal Communications Commission chief of staff, in comments to Axios.
T-Mobile's 2020 purchase of Sprint cut the number of big national carriers from four to three, Axios notes. Regulators tried to keep a fourth by requiring the sale of Boost Mobile to Dish Network, but that never produced a strong rival.
Analyst Craig Moffett of MoffettNathanson has questioned why SpaceX would enter a business where even the big carriers struggle to earn good returns, Axios reports.
SpaceX has floated the idea of using Starlink rooftop gear as small cell sites, which could cut some building costs, Axios says.
Any deal for Boost Mobile would need approval, and that is far from certain, Axios reports.
Boost Mobile has more than 7 million customers in the US, The Independent reports. SpaceX has already launched 650 Starlink Mobile satellites that let some phones connect directly to satellites, the paper says.
Boost Mobile leases its network capacity from AT&T, and that deal may not move to SpaceX if it buys the business, The Independent reports. The paper says it has asked SpaceX and EchoStar for comment.
What we know: SpaceX is seeking a path into the US wireless market and has talked with EchoStar about Boost Mobile.
What we don't: Whether any deal will be reached or approved.
Where outlets agree Axios and The Independent report SpaceX's push into wireless service tied to Boost Mobile.
Where they differ The cited reports agree on the key facts so far.