Elon Musk is exploring a potential partnership or acquisition involving Boost Mobile as he seeks to expand SpaceX into the US wireless telecommunications industry, The Washington Post reported, citing people familiar with the discussions.
According to the report, SpaceX has been negotiating with EchoStar, Boost Mobile's parent company, in recent months over a possible arrangement that would allow the rocket and satellite company to introduce its own wireless service.
EchoStar shares gained in premarket trading.
Musk has reportedly been directly involved in the discussions, including a meeting with EchoStar Chairman Charlie Ergen last month. The negotiations could lead to SpaceX purchasing Boost Mobile or obtaining access to its wireless network, which currently operates through agreements with AT&T and T-Mobile US, the newspaper said.
The move could provide SpaceX with an alternative route into the highly competitive US mobile market. Musk had previously approached executives at Verizon and other major telecommunications providers seeking access to their networks, but those efforts did not result in an agreement. Verizon, AT&T and T-Mobile ultimately declined to grant SpaceX the access it sought, according to the report.
SpaceX's potential arrangement with EchoStar could give the company access to existing network infrastructure without having to build an entirely new wireless network from scratch. However, the proposed service may still require approval from the carriers involved in Boost Mobile's network agreements.
The opportunity is significant given the size of the US wireless industry. Equity research firm MoffettNathanson estimates the market is worth approximately $235 billion.
For SpaceX, entering telecommunications would represent a further step in Musk's broader ambition to turn the company into a diversified technology and services business rather than relying primarily on rocket launches and satellite operations.
Musk has previously outlined a vision in which SpaceX develops multiple revenue-generating businesses based on its space and satellite technologies. He has suggested that the company's annual revenue could reach $1 trillion as early as 2027, while envisioning a long-term valuation that could surpass the size of the global economy.
Musk has also argued that SpaceX's technological capabilities could reshape the competitive landscape of the cellular industry, suggesting that traditional telecommunications operators may be overlooking new approaches enabled by the company's developing technologies.
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