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SpaceX has held talks with EchoStar about buying Boost Mobile or gaining access to the wireless network it uses, according to a Washington Post report published Monday, opening another possible route for Elon Musk to challenge the largest U.S. mobile carriers.
The discussions have taken place in recent months, and Musk met EchoStar chairman Charlie Ergen last month, the Post reported, citing people familiar with the negotiations. The report describes talks, not a signed acquisition agreement or an announced service launch.
Boost Mobile uses network access leased from AT&T and T-Mobile. A deal could give SpaceX access to an existing wireless operation rather than requiring it to build every part of a consumer mobile business from the ground up.
The alternatives matter: buying Boost would be different from securing a right to use its network arrangements. The Post report, relayed by Reuters, did not establish which route the companies would choose or whether the talks would produce a transaction.
Any arrangement may also depend on the incumbent carriers. The reports say AT&T and T-Mobile may need to consent because Boost’s network-leasing agreements may not be transferable to a new owner without their approval.
EchoStar had 7.38 million wireless subscribers at the end of the second quarter, primarily Boost Mobile and Gen Mobile customers, according to Reuters. That is the total for EchoStar’s wireless business, not a count of Boost customers alone.
The talks fit SpaceX’s effort to develop Starlink Mobile as a network combining satellites with ground infrastructure. Such a service would put the company into more direct competition for customers of AT&T, Verizon and T-Mobile, while leaving substantial work in areas such as customer service and network operations.
The Washington Post published its report at 5 a.m. Eastern on November 2. It said Musk had also approached senior executives at Verizon and other telecom companies about access to their networks. These were previously unannounced discussions reported Monday, not negotiations said to have begun that morning.
SpaceX and EchoStar did not immediately respond to Reuters’ requests for comment. A price, final deal structure and consumer launch timetable for the proposed Boost arrangement were not announced in the reports.
JBizNews Desk | New York
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