Ing. Calogero Bono
SpaceX has reportedly begun talks with EchoStar to buy Boost Mobile, the American mobile virtual network operator, or to use its network. The news comes from an investigation by the Washington Post, picked up by TechCrunch, The Verge and other outlets. For now there is no official confirmation. It matters because it shows how Elon Musk's company wants to move from satellites to a real phone service, with a ground-network part it doesn't have today.
A few terms before we get into the facts. MVNO is a virtual operator – it sells subscriptions but uses someone else's network. Spectrum is the radio frequencies the signal travels on. Direct-to-Cell is the direct link between satellite and phone, without dedicated antennas. Low band refers to frequencies such as 800 MHz, which pass through walls and obstacles better. Cell site is a site housing the antennas of a mobile network.
What would have happened between SpaceX and EchoStar?
According to the Washington Post, Elon Musk would have spoken directly with Charlie Ergen, EchoStar's chairman, in October. The subject would have been the purchase of Boost Mobile, which together with GenMobile brings EchoStar about 7.5 million customers, as TechCrunch reports.
The alternative would be a separate agreement for network access. Android Authority writes that SpaceX would also seek access to about 80,000 cell sites in the United States. According to The Verge, neither SpaceX nor Boost immediately replied to the request for comment.
Why does SpaceX need Boost Mobile?
SpaceX already offers Starlink Mobile through T-Mobile, but the direct link to the phone only works outdoors. Punto Informatico explains this. The frequencies bought from EchoStar and the new 800 MHz band license should improve coverage inside buildings.
The terrestrial network is still missing, however. Boost covers much of the 48 contiguous states, says TechCrunch. With those towers, Starlink could serve phones outdoors and leave the ground antennas to handle cases where the satellite signal doesn't reach.
What obstacles stand in the way of the deal?
The first are the big carriers. Musk would have asked AT&T, T-Mobile and Verizon to buy capacity on their networks, and all three would have refused.
The second is technical and contractual. Boost has no towers of its own and rents capacity from AT&T and T-Mobile, which could have to approve the transfer. According to the Post's sources, reports TechCrunch, these contracts are generally not transferable. SpaceX would therefore have to ask two future competitors for permission.
Is building your own network really that slow?
Here the positions diverge. Punto Informatico reports that, according to Verizon's CEO, a terrestrial infrastructure would require up to 500 billion dollars and no less than 4 to 6 years. Musk would have replied that 2 to 3 years is enough.
These are partisan statements, not independent measurements. They nonetheless explain why buying an operator already in service is faster than starting from scratch.
The same article also recalls the hostility of the four main European operators toward SpaceX.
Limits to know
Everything rests on anonymous sources cited by the Washington Post. Neither party has confirmed the talks, and the price, timing and form of the deal, whether a purchase or simple network access, are not known. We don't know whether AT&T and T-Mobile would give their consent. The figures on network costs and timing come from executives with opposing interests.
What changes for those who work in digital
The story mainly concerns the US market, but it also teaches something to those working in Italy. If a connectivity provider changes its model, coverage, prices and conditions change for anyone building services that depend on the network. Those who build mobile apps, for example with React Native, should plan for unstable or intermittent connections. Those managing connected devices can look at lightweight protocols like MQTT, designed to save bandwidth.
Our take
The idea is logical but fragile. SpaceX has bought spectrum and has the satellites, while towers are the part you cannot improvise. Buying Boost looks like a shortcut, but if the contracts with AT&T and T-Mobile don't transfer, the advantage stays in the hands of the competitors. The three big carriers' refusal shows that nobody hands space to someone who wants to become a rival. Until there is a press release, we treat the deal as a well-informed hypothesis.
Frequently asked questions
Has SpaceX bought Boost Mobile?
No. What is being discussed are talks reported by the Washington Post, with no official confirmation. SpaceX and Boost had not replied to requests for comment from The Verge.
What is Boost Mobile?
It is a virtual mobile operator owned by EchoStar. It has no towers of its own and uses the networks of AT&T and T-Mobile. Together with GenMobile it counts about 7.5 million customers.
Why are AT&T and T-Mobile needed?
Because Boost rents capacity on their networks. According to the Post's sources these contracts are generally not transferable, so they may have to approve the sale.
What does SpaceX want to achieve?
A hybrid satellite and terrestrial network. Starlink would cover phones outdoors, while Boost's towers would handle cases where the satellite signal doesn't reach.
Does this concern Italy too?
Not directly. The deal is American, but it signals SpaceX's direction in telephony and may interest anyone following satellite connectivity in Europe.
What to watch in the coming months on SpaceX's mobile plan
The game will be played out in confirmations, permits and timing. Here are the most useful signals to follow.
- Check whether SpaceX or EchoStar release official statements about the agreement.
- Follow AT&T and T-Mobile's response on consenting to the network lease contracts.
- Watch for news on access to the roughly 80,000 cell sites reported by Bloomberg.
Sources
- techcrunch.com, SpaceX reportedly wants to buy Boost Mobile to compete with AT&T, T-Mobile, and Verizon
- androidauthority.com, SpaceX eyes US carrier acquisition for its growing cellular ambitions
- punto-informatico.it, SpaceX vuole acquisire Boost Mobile o usare la sua rete
- theverge.com, SpaceX could buy Boost Mobile as part of its big mobile carrier plans
