AT&T and T-Mobile may cut Boost Mobile off their networks if SpaceX buys it

what happened

Stocktwits, citing a post on X by Semafor business reporter Rohan Goswami, reports that AT&T and T-Mobile would drop Boost Mobile from their networks if Elon Musk’s SpaceX goes ahead with a takeover of the prepaid carrier. Goswami wrote that executives at both companies have discussed this step separately, based on sources familiar with the talks.

Boost Mobile, owned by EchoStar, has no nationwide tower network of its own and leases capacity from AT&T and T-Mobile under MVNO agreements. Such contracts usually contain change-of-control limits and do not move automatically to a new owner. The Washington Post reported earlier this week that SpaceX had explored buying Boost or getting access to its network through EchoStar, and that Musk met EchoStar chairman Charlie Ergen last month.

SpaceX is trying to build its own standalone wireless business. It recently bought low-band spectrum that would let its Starlink satellites work with what Musk calls a “major mobile carrier.” Bloomberg reported last month that the company is seeking deals for at least 80,000 US cell sites. That report hit shares of Verizon, AT&T and T-Mobile as investors priced in more competition. SPCX closed Thursday at about $123.62, below its June IPO price of $135, and has fallen about 8% this week.

why it matters

For investors, the story matters as a possible new rival to the three largest US carriers. Verizon’s CEO has called the threat distant, and Musk disputes that timeline. Because the host carriers’ consent would likely be needed, the outcome of any deal depends heavily on AT&T and T-Mobile.

market impact

US telecom stocks: fear of a new wireless rival from SpaceX pressures AT&T, Verizon and T-Mobile

• ▼AT&T, Verizon and T-Mobile shares pressure down — investors price in more competition from SpaceX's wireless plans

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