According to The Washington Post, SpaceX is seeking to acquire Boost Mobile from EchoStar. If the deal is completed, it will help the company owned by Elon Musk build a hybrid cellular satellite network and may push it to become the fourth top wireless provider in the United States. According to reports, Musk directly discussed the acquisition of Boost Mobile with EchoStar Chairman Charlie Ergon in October. Boost Mobile is a mobile virtual network operator, with a total of approximately 7.5 million customers for its Boost Mobile and Gen Mobile mobile services under EchoStar.

Targeting 7.5 million users and ground networks

SpaceX has been trying cellular connectivity. In 2024, SpaceX began providing satellite access services to T-Mobile users. Last year, SpaceX purchased wireless spectrum from EchoStar for $17 billion for cellular services, which may help its Starlink service enter the interior of buildings, something Starlink currently struggles to achieve. Musk stated on X at the time that this was the “last crucial piece of the spectrum puzzle” required for SpaceX to provide complete phone coverage in the United States. But according to reports, if Musk is still seeking to purchase ground network access, this is clearly not the last piece.

According to reports, Musk also contacted AT&T, T-Mobile, and Verizon to discuss purchasing their network capacity. All three have rejected Musk, and they may still have a say in SpaceX’s acquisition of Boost Mobile. Boost does not operate its own tower, but leases capacity from AT&T and T-Mobile, and such transactions may require approval from both companies. Sources told The Washington Post that internet leases are usually non transferable. The three major wireless providers in the United States each have over 100 million users, far exceeding the user base of Boost Mobile. The acquisition will bring an immediate increase in user numbers to SpaceX, but the true value of the deal lies in giving the company access to ground cellular networks.

Online leasing remains a barrier

The report points out that obtaining tower access leased to Boost Mobile will significantly expand coverage. Boost currently covers most of the 48 contiguous states in the United States. This will enable Starlink to provide coverage when the device is outdoors and rely on cellular towers to handle connections when Starlink signals cannot reach the device. For SpaceX, the key to hybrid cellular satellite networks lies in utilizing both satellite and ground networks simultaneously, and the acquisition of Boost Mobile may add to its ground network. However, as Boost relies on the network capacity of AT&T and T-Mobile, and leases are usually non transferable, the progress of the transaction still depends on the attitude of the relevant network parties.