SpaceX is determined to become a full-service U.S. wireless carrier, and it might buy its way into the industry to make it happen sooner rather than later.
Monday, The Washington Post reported that SpaceX was considering buying EchoStar's Boost Mobile or using its network.
SpaceX didn't respond to a request for comment.
The idea makes sense, although buying in is an old-fashioned way to enter an industry.
Telecom executives and investors have worried for months about SpaceX's wireless communication plans. Its space-based broadband product, Starlink, is technologically advanced, profitable, and growing rapidly.
At the end of the third quarter, SpaceX reported 13.6 million Starlink users, up about 90% year over year. Using more than 11,000 satellites to reach customers in more than 170 countries, Starlink generated third-quarter sales of $5.2 billion and profit margins north of 65%.
Currently, Starlink is best at high-speed internet service in rural areas, but the company's satellites are getting more sophisticated, able to handle more and more data. SpaceX has made it no secret that it wants to offer mobile wireless service. But to offer full coverage, the company will need traditional terrestrial wireless infrastructure.
Based on management comments, it looked as if SpaceX might build a network from the ground up -- a timely and costly proposal. Boost Mobile would jump-start the process.
Boost is EchoStar's wireless offering that ended 2025 with more than 7.5 million subscribers. It is a so-called mobile virtual network operator (MVNO). Boost doesn't own wireless equipment. It rents wireless capacity from T-Mobile and AT&T.
Buying Boost would be a feather in the cap for many Wall Street analysts who essentially predicted that SpaceX would need a partner to build its wireless offering.
The deal would be good for EchoStar shareholders. It would also be good for T-Mobile and AT&T, who would get SpaceX as a customer.
Wireless investors are still nervous about SpaceX, though. AT&T and T-Mobile shares were both down about 1% in premarket trading. Verizon Communications shares were down a little more than 1%.
Shares of wireless tower companies American Tower and Crown Castle were down a little. EchoStar stock was the big early winner from the report, rising 4.6% in premarket trading.
SpaceX stock was up 2.3% at $137.80. Whether that move is based on SpaceX's wireless plans or something else is hard to say. SpaceX stock sold off this past week, along with other AI-related names, as fears about AI profits and financing grew. Shares closed on Friday at $134.72, below the June $135 IPO price. S&P 500 and Dow Jones Industrial Average futures were up 0.5% and 0.6%, respectively.
EchoStar as a partner also makes some sense for SpaceX. It sold Elon Musk's rocket and AI company a lot of wireless spectrum recently, which fueled speculation about SpaceX's wireless plans.
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