SpaceX in Talks on EchoStar Deal to Enter $235 Billion U.S. Wireless Market

Key Facts

SpaceX is in talks with EchoStar about a wireless service of its own, in a move that could expand Elon Musk’s company from satellite communications into the U.S. mobile phone market, the Washington Post reported on Nov. 2. The newspaper cited two people familiar with the negotiations as saying the discussions took place in recent months. Available information did not indicate that the parties had reached a final agreement. Options under consideration include buying EchoStar’s Boost Mobile or securing the right to use its network. That could bring terrestrial telecommunications infrastructure into SpaceX’s strategy, but remains contingent on the deal’s details and approval from the parties involved.

Elon Musk personally discussed the deal and met last month with EchoStar Chairman Charlie Ergen, according to people familiar with the talks cited by the Washington Post. A deal involving Boost could allow SpaceX to offer service through traditional cell towers while developing satellite connectivity for phones. Research firm MoffettNathanson estimates the U.S. wireless market at about $235 billion. That puts the market at the center of SpaceX’s effort to build a major mobile phone service in the United States. Using existing towers could also add a terrestrial route to the satellite communications services the company is developing.

The prospect of using Boost’s network faces a potential contractual hurdle, as EchoStar leases the network from AT&T and T-Mobile. The Washington Post said a network lease agreement typically does not transfer to a new buyer without approval from the major carrier. Launching a SpaceX service could require approval from both companies, according to the report. That means buying Boost alone would not guarantee that the right to operate or access the network would transfer to SpaceX. The option of direct network access would also depend on the terms of arrangements with the infrastructure owners.

The talks build on an existing course of cooperation between SpaceX and EchoStar in satellite communications. The companies announced a long-term commercial agreement allowing Boost Mobile subscribers to access next-generation Starlink Direct to Cell service through Boost’s network. EchoStar Chief Executive Hamid Akhavan said the arrangement combines the company’s AWS-4 and H-block spectrum with SpaceX’s rocket and satellite launch capabilities. The possibility of a new deal therefore adds discussions about ownership of Boost or use of its network to a commercial relationship that already includes satellite service for its subscribers. The information provided does not indicate that the previous commercial agreement has been replaced or canceled.

SpaceX previously agreed to buy wireless spectrum licenses from EchoStar in a deal announced in September 2025 and valued at about $17 billion, split between up to $8.5 billion in cash and up to $8.5 billion in SpaceX shares. An amendment to the agreement later added up to 15 megahertz of AWS-3 spectrum for an additional $2.6 billion. That brought the total announced value of the transactions to about $20 billion, according to EchoStar’s second-quarter 2026 filing. As part of the arrangements, SpaceX agreed last month to buy $8 billion in spectrum licenses intended to serve phones in areas that are difficult for satellites to reach. The deals link terrestrial spectrum and satellite services as SpaceX expands in mobile communications.

The need for terrestrial coverage remains tied to the limits of current satellite connectivity. The Washington Post noted that satellite signals do not currently provide phone coverage inside buildings or in urban areas, where millions of phones are concentrated. The report said millions of devices are clustered in cities, where direct satellite communications are ineffective. Using Boost’s towers could address part of that gap through traditional infrastructure if an arrangement providing access can be reached. At the same time, the newspaper reported that telecom operators are skeptical SpaceX can build an extensive network of towers, antennas and ground infrastructure that the company lacks.

The spectrum agreement between the companies received Federal Communications Commission approval on May 12, 2026, and the transfer of spectrum assets to a trust entity was completed on May 22, according to an EchoStar filing. Final completion of the spectrum acquisition remains targeted for Nov. 30, 2027, subject to the conditions being met. EchoStar also said SpaceX agreed to fund about $2 billion in debt interest payments through November 2027 as part of the arrangements. These dates set a framework for the earlier transactions, while no timeline for completing the Boost talks was included in the published information. AST SpaceMobile shares closed at $40.97 on Oct. 30, according to EL7 data.