Musk says he can launch a wireless carrier in two to three years

what happened

According to Dow Jones Newswires, Elon Musk believes Starlink could become a major U.S. wireless carrier within two to three years. Verizon CEO Daniel Schulman told investors on Monday that he would welcome the competition, but he thinks building a SpaceX mobile network will take at least four to six years.

Analysts say SpaceX could speed things up through acquisitions. Bernstein estimates the company could spend more than $100 billion over six to eight years on spectrum and cell-tower access. Citi says buying an existing carrier would cut its time to market by roughly three to four years. Still, the big carriers have not rushed to strike deals with SpaceX and have formed a joint venture focused on satellite internet.

why it matters

For markets, the key question is a possible deal involving EchoStar. Analyst Tim Farrar suggested SpaceX could buy the company in full through a stock transaction, which could be tax-free for EchoStar holders. EchoStar shares were down almost 2% on Wednesday. This remains a speculated scenario, not a confirmed decision.

market impact

EchoStar: a possible deal with SpaceX remains uncertain, and shares were down almost 2% on Wednesday

tags

instruments