SpaceX is in talks to acquire Boost Mobile

According to the Washington Post, SpaceX is in talks with EchoStar for Boost Mobile. First, the company is considering either acquiring Boost Mobile or using its access to T-Mobile and AT&T networks through another arrangement. Therefore, the move is seen as Elon Musk's effort to overcome the obstacle set by large operators.

Why Don't the Big Three Offer MVNOs?

For example, MVNO is when a company provides services by renting the infrastructure of another operator. However, SpaceX's terrestrial frequencies are not enough to launch its own mobile service in cities. So the most attractive option was to make an MVNO deal with AT&T, T-Mobile or Verizon.

But all three operators see SpaceX's rapidly growing cellular ambitions as a direct threat. Therefore, he rejected the deal. Therefore, SpaceX had to make the space-based 2 GHz mid-band frequency the backbone of the network. In addition, the newly acquired 14 megahertz matched frequency in the 800 MHz band allows Starlink Mobile signals to enter buildings.

In addition, the terrestrial frequencies available to SpaceX are as follows:

Approximately 15 MHz unpaired AWS-3 nationally

Approximately 40 MHz AWS-4 nationally

Approximately 10 MHz H-Block nationwide

Approximately 14 MHz matched frequency in the 800 MHz band

What Does SpaceX Boost Mobile Bring?

Boost Mobile, which is the focus of the SpaceX Boost Mobile move, has approximately 7 million subscribers. Additionally, the company has a cloud-based 5G core software. However, it seems unlikely that the company's MVNO agreements with T-Mobile and AT&T will transfer to SpaceX. Because wholesale network rental agreements generally cannot be transferred to the new buyer in company acquisitions. Therefore, this situation paves the way for a possible legal process.

The bond between the two parties in the SpaceX Boost Mobile talks is already strong. Because EchoStar sold its frequency assets to AT&T and SpaceX in 2025. On the other hand, when regulators approved T-Mobile's acquisition of Sprint, they expected Dish Network to become the fourth operator in the United States. However, this expectation did not come true.

Other Moves by SpaceX

SpaceX is also trying to lease at least 80,000 cell tower sites across the US. Accordingly, it is estimated that the company allocated $ 75,000 for each area and envisages a total budget of $ 6 billion. At the same time, the company received FCC approval for up to 15,000 V2 (Gen2) satellites that can connect directly to smartphones.

In addition, SpaceX is exploring adding small, low-power femtocell-type base stations to existing Starlink antennas. Thus, it wants to avoid the high initial investment cost of establishing a base station and purchasing a frequency.

On the other hand, T-Mobile CEO Srini Gopalan downplayed the threat last week. Except in some rural areas, satellite is a more limited version of fixed wireless access (FWA), according to Gopalan. However, it is not yet clear how the SpaceX Boost Mobile acquisition will change the current order. Finally, the outcome of the talks has not been announced yet.