Elon Musk Seeks Boost Mobile Deal to Advance SpaceX's Wireless and Mars Ambitions

Elon Musk wants to turn SpaceX into a major cellphone carrier, generating another enormous revenue stream while advancing the satellite connectivity technology he'll eventually need for his planned human settlement on Mars.

Musk has been in talks with Boost Mobile's parent company EchoStar in recent months about a potential deal that could give SpaceX access to an existing wireless network or result in the company acquiring the discount carrier, as the Washington Post reports. Musk reportedly discussed the proposal personally with EchoStar chairman Charlie Ergen.

The arrangement could give SpaceX an opening into the US wireless market, estimated to be worth $235 billion. Boost currently leases network access from AT&T and T-Mobile, potentially giving SpaceX access to infrastructure it would otherwise have to spend years building.

However, those existing agreements generally cannot be transferred to a new owner without the major carriers' approval, according to the Post.

Musk had previously approached executives at Verizon and other major telecom companies seeking access to their networks, but Verizon, AT&T, and T-Mobile all turned him down. The companies have reportedly been unsettled by the prospect of SpaceX entering their industry as a direct competitor.

SpaceX has already been expanding its telecom capabilities, including reportedly launching satellite access for T-Mobile subscribers in 2024. Earlier this month, the company agreed to purchase $8 billion in wireless spectrum licenses intended to expand cellphone coverage in areas satellites cannot currently reach.

“This is the last critical piece of the spectrum puzzle needed for SpaceX to provide complete phone coverage in America,” Musk wrote on social media.

According to TechCrunch, SpaceX also purchased $17 billion in wireless spectrum from EchoStar last year. The spectrum could help Starlink extend coverage indoors, where satellite signals currently struggle to reach.

Boost Mobile's value to SpaceX may extend beyond its existing subscriber base, which is considerably smaller than those of the major carriers. The company leases access to cell towers covering most of the contiguous United States, potentially allowing Starlink to provide satellite connectivity outdoors while relying on traditional cellular infrastructure in areas where satellite signals donn't reach.

Musk has said SpaceX needs to expand beyond rocket launches and satellite services to generate the revenue necessary to support its ambitions. He has projected that the company could eventually bring in $1 trillion annually, potentially as soon as 2027, through businesses built around its technology, per the Post.

Developing that technology could also advance Musk's plans for a human settlement on Mars, where reliable communications would be essential.

There are still significant technical obstacles. Satellite connections are less efficient in densely populated urban areas, where millions of phones rely on traditional cellular infrastructure. Tim Farrar, a satellite-industry analyst and president of TMF Associates, told the Post that SpaceX's current satellite signal isn't strong enough to reliably provide coverage indoors or throughout cities.

A partnership with an established carrier could help address those limitations, although telecom executives have questioned whether Musk can build the extensive network of cell towers, antennas, and other ground infrastructure necessary to compete with established providers.

Verizon's CEO previously estimated that such an undertaking would take four to six years. Musk countered that SpaceX could accomplish it in roughly half that time, although he has a history of offering ambitious timelines that don't always materialize, as the Post notes.

Others believe the telecom companies shouldn't underestimate Musk's ability to disrupt the wireless industry. Drew Cupps, a portfolio manager at Polen Capital, pointed to Tesla's global Supercharger network, which encompasses approximately 80,000 charging stations.

The carriers, Cupps told the Post, “are right to be spooked and agitated at the same time.”

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