SpaceX is eyeing the possibility of creating a fourth national mobile service carrier in the United States.To better accomplish this, the rocket company is looking into buying or leasing Boost Mobile's current network, according to the Washington Post.This comes on the heels of reports that CEO Elon Musk has been in talks with other cellular carriers so he can add cell phone and related services to his business portfolio.
Add How-To Geek on Google Add as Preferred Source Follow on Google Discover Aiming for $1 trillion in revenue That's Musk's income goal for 2027 SpaceX already generates plenty of TK revenue as a satellite technology and rocket launch company.They've self-reported revenue of $14.6 billion during this year's third quarter (Q3).Its total profit for Q3 is $4.4 billion, per the Financial Times UK.
This puts SpaceX in a strong position to acquire a cellular network and build its own services on its already extensive existing infrastructure.Verizon, AT&T, and T-Mobile have reportedly rejected SpaceX Boost Mobile already leases from AT&T and T-Mobile The Washington Post's article reveals that all three major cell service carriers have been approached with an offer to buy or lease.However, AT&T, Verizon, and T-Mobile have already rejected SpaceX's offers to buy.
Boost Mobile, owned by EchoStar, offers its low-cost cell phone services by leasing from AT&T and T-Mobile.In essence, by buying Boost Mobile, SpaceX would then find an alternative way to use these cell phone towers.Additionally, buying Boost Mobile means that AT&T and T-Mobile might not be able to prevent SpaceX from leasing its services.
SpaceX's thirst for low-spectrum coverage Satellite coverage doesn't offer in-building access Low-spectrum coverage refers to low-bandwidth 5G, which works at speeds of less than 1GHz, according to the Global System for Mobile Communications Association (GSMA).This makes it slower, but also allows for more coverage with just one tower.SpaceX does all the engineering that allows Starlink to provide fast internet in remote areas.
However, the company doesn't yet have access to mobile carrier service capacity that would allow SpaceX to offer monthly cell phone plans, for example.As reported by MarketWatch, acquiring Boost Mobile's agreements would allow SpaceX to generate up to $235 billion in revenue and put the company well on track to reach its goal of $1 trillion in revenue by 2027.Source: Reuters
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