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SpaceX in Discussions to Acquire Boost Mobile for U.S. Market Entry

SpaceX is discussing with EchoStar the acquisition of Boost Mobile or another agreement to expand Starlink Mobile in the U.S. The outcome of the negotiations is not yet known.

03 Nov, 10:56Read in Russian

Boost Mobile is a subsidiary of EchoStar with approximately 7 million subscribers and its own 5G software infrastructure. The company has virtual operator agreements with AT&T and T-Mobile, but their transfer to a new owner is not guaranteed and could lead to legal disputes.

SpaceX lacks terrestrial frequencies for full-scale operations in cities, and AT&T, T-Mobile, and Verizon are not prepared to grant it access to their networks under an MVNO model. Therefore, the company is developing Starlink Mobile: it plans to use satellites for direct smartphone connectivity and is seeking access to 80,000 cellular tower sites in the U.S.

The FCC has authorized SpaceX to launch up to 15,000 second-generation satellites with smartphone connectivity. Meanwhile, T-Mobile CEO Srinivas Gopalan has expressed skepticism about the prospects of satellite communications compared to fixed wireless access. The potential terms of the agreement with EchoStar and its legal implications remain undetermined.

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