SpaceX could soon become a network operator

Starlink, the internet beaming satellite division of SpaceX, is already a well-known player in the LEO market, despite not being able to crack it in South Africa just yet, but now its parent company is looking to become a mobile network operator.

This, according to a report from The Washington Post (paywall), which notes that SpaceX has already held talks to acquire an existing network operator in the form of Boost Mobile. The move would be a shrewd one, as it would allow SpaceX to circumvent the significant investment in capital and time in order to build out the infrastructure itself.

If an acquisition did happen, the publication noted that SpaceX would want to launch “signature wireless service” of its own soon after.

Whether the deal happens, remains to be seen.

Like the South African network industry, not every player owns its infrastructure. Much like Cell C, which leverages the towers of MTN (and a little from Vodacom, too), Boost Mobile makes use of the network provided by AT&T and T-Mobile in the United States under a leasing agreement.

Given that AT&T and T-Mobile would need to give the okay for such an acquisition, it may have hit its biggest stumbling block. As The Washington Post pointed out, the two companies listed above, as well as Verizon have already turned down offers from Elon Musk in order to leverage their respective networks in deals.

As such, the current prospect of SpaceX wanting to acquire another significant player in the US to address this, may also face rejection.

That said, as a key organisation in satellite deployment, not to mention its expansive work when it comes to Starlink, there may still be other carrots for the company to dangle in order to get a deal over the line.

As Engadget pointed out, SpaceX acquired $2.6 billion worth of spectrum licences from Boost Mobile’s owner, EchoStar, last year. Those licenses could prove useful to fuel any ambitions of having 5G support at launch, which would be necessary for any mobile network wanting to make an impact in the US market.

While the machinations are still happening regarding SpaceX’s efforts, the company is seemingly looking to make some moves and become a mobile network operator soon.

[Image – Photo by SpaceX on Unsplash]

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