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Elon Musk has held discussions to acquire a US telecoms business in order to launch a mobile network for SpaceX’s Starlink service, according to a report.
The SpaceX boss plans to either buy EchoStar’s Boost Mobile or lease its cellular network, The Washington Post reported. SpaceX hopes to establishing Starlink as a major competitor to AT&T, T-Mobile and Verizon.
Boost Mobile, which operates as a mobile virtual network operator, has more than 7 million customers in the US.
Starlink already beams broadband internet to millions of customers in the US using thousands of satellites in low-Earth orbit.
The acquisition of Boost Mobile would provide a hybrid network that combines satellites with terrestrial infrastructure.
By taking over an established mobile brand, SpaceX would gain access to millions of customers, distribution channels, and an existing retail presence.
SpaceX has already launched 650 Starlink Mobile satellites, referred to as V2, that are capable of delivering its Direct to Cell service.
They allow compatible smartphones to connect directly to satellites without the need for terrestrial mobile phone towers.
The technology is designed to provide mobile connectivity in so-called “dead zone” areas with limited or no conventional network coverage, allowing users to send texts, make calls and access data through Starlink satellites.
“Direct to Cell works with existing LTE phones wherever you can see the sky,” Starlink’s website states. “No changes to hardware, firmware, or special apps are required, providing seamless access to text, voice, and data.”
The service currently relies on partnerships with established mobile network operators in several markets, with the US operation working with T-Mobile.
The acquisition of Boost Mobile would offer a more direct route into the US wireless market, although there could be obstacles to any agreement.
Boost Mobile leases its network capacity from AT&T and the existing agreement may not automatically transfer to SpaceX if it acquires the business.
The Independent has reached out to SpaceX and EchoStar for comment.
