AT&T, T-Mobile Are Reportedly Ready To Boot Boost Mobile If SpaceX Buys It

Semafor’s Rohan Goswami said that AT&T and T-Mobile have discussed removing Boost Mobile from their networks if SpaceX acquires the EchoStar unit, creating a potential obstacle to Elon Musk’s push to become a major U.S. wireless carrier.

• Boost Mobile, owned by EchoStar, does not operate its own nationwide tower network; it leases capacity from AT&T and T-Mobile. 
• Earlier this week, The Washington Post reported that SpaceX had discussed buying Boost or gaining access to its network with EchoStar. 
• SpaceX CEO Elon Musk has previously said that his company would take only “two or three years” to achieve its goal of being a major telecommunications carrier.

AT&T and T-Mobile would remove Boost Mobile from their networks if Elon Musk’s SpaceX proceeds with a takeover of the prepaid carrier, according to Semafor business reporter Rohan Goswami.

In a post on X on Thursday, the Semafor reporter wrote that executives at both companies “have separately discussed” the step, citing sources familiar with the talks. The disclosure comes on the heels of SpaceX-EchoStar deal talks.

Boost’s Dependence On AT&T And T-Mobile

Boost Mobile, owned by EchoStar, does not operate its own nationwide tower network. It leases capacity from AT&T and T-Mobile under mobile virtual network operator agreements. Those contracts typically include change-of-control restrictions and do not automatically transfer to a new owner.

Earlier this week, The Washington Post reported that SpaceX had discussed buying Boost or gaining access to its network with EchoStar, and that Musk met EchoStar Chairman Charlie Ergen last month. The Post noted that any such arrangement would likely require the host carriers’ consent.

SpaceX’s Broader Push For A Standalone Network

Talks of a Boost Mobile deal come as SpaceX seeks to establish itself as a standalone wireless competitor. The company recently acquired low-band spectrum that will help integrate its Starlink satellites into what CEO Elon Musk has described as a “major mobile carrier.”

Last month, Bloomberg also reported that SpaceX is pursuing agreements for a minimum of 80,000 cell sites across the United States as it advances plans to build a fourth nationwide wireless carrier. The report said that SpaceX is in discussions with at least one major cellular infrastructure company and that Crown Castle Inc. (CCI), among the largest U.S. owners of cellular towers alongside American Tower (AMT) and Vertical Bridge, was also approached for the purpose. The report pulled down shares of Verizon, AT&T and T-Mobile as investors priced in added competition.

However, late last month, Verizon CEO Dan Schulman dismissed the near-term threat from SpaceX’s Starlink ambitions, arguing that any serious challenge in the U.S. mobile market would require a full terrestrial network costing hundreds of billions of dollars and taking four to six years to build. SpaceX CEO Elon Musk disputed the timeline, saying that his company would take only “2 or 3 years.”

How Did SPCX Retail Traders React?

On Stocktwits, retail sentiment around SPCX stock stayed within the 'neutral' territory over the past 24 hours, while message volume jumped from 'normal' to 'high' levels.

SPCX stock closed down Thursday at about $123.62, lower than its June IPO price of $135. The stock has dropped 8% so far this week, extending declines from last week, when it declined nearly 9%. 

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