SpaceX rises on report of possible Boost Mobile deal

SpaceX stock moves higher

AOL reports that Space Exploration Technologies, listed as NASDAQ:SPCX, climbed 4.4% by 10:55 a.m. ET Monday. The move followed a Washington Post report over the weekend saying Elon Musk’s company is in talks to buy Boost Mobile or use its network.

What the report says SpaceX is pursuing

According to AOL’s summary of the Washington Post report, SpaceX is trying to gain a direct foothold in the wireless business on Earth. The article says the company already has the world’s largest broadband satellite constellation in orbit and a sizable group of telecommunications satellites that support direct-to-cell service. The Washington Post described this as a potential route into the $235 billion wireless market.

Talks with Boost owner EchoStar

AOL reports that SpaceX was turned down by the three major carriers, AT&T, T-Mobile, and Verizon. After those rejections, the company was said to be speaking with EchoStar, which owns Boost Mobile, about either buying Boost or partnering on a new cellphone service that would use Boost’s network. The article notes that Boost itself leases network access from AT&T and T-Mobile, even though those firms had already rejected SpaceX’s earlier outreach.

Recent steps and open question

AOL says the rumor appears likely to be true based on SpaceX’s recent actions. Over the past month, the company received Federal Communications Commission approval to launch 15,000 direct-to-cell satellites, which would expand its ability to connect phones worldwide. It also spent $8 billion to buy U.S. spectrum licenses from Grain Management, a private equity firm. The article says these developments suggest SpaceX may be preparing to buy or build a terrestrial network, though the report does not confirm a final deal.