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Why SpaceX stock is rising today
- SpaceX
- EchoStar
- AT&T
- Elon Musk
- T-Mobile
- The Washington Post
- Verizon Communications
- Charlie Ergen
What happened
SpaceX shares rose 3.2% by midday Monday, Nov. 2, after the Washington Post reported that SpaceX is in talks with EchoStar to buy its discount carrier Boost Mobile or gain access to its network. SpaceX wants to launch its own phone service after Verizon, AT&T and T-Mobile reportedly turned it down.
Summary
SpaceX stock was up 3.2% as of 12:55 p.m. ET on Monday, Nov. 2, outpacing the broader market. The lift came after the Washington Post reported that SpaceX has spent recent months talking with EchoStar about a deal for Boost Mobile, a discount carrier aimed at lower-income customers. Two people familiar with the talks told the Post that SpaceX could buy Boost outright or gain access to its network. Elon Musk reportedly met EchoStar chairman Charlie Ergen last month. EchoStar shares rose, while AT&T, Verizon and T-Mobile slipped. None of the companies has confirmed the talks. [8] [2] [5] [7] [11]
Boost is what the industry calls an MVNO, a carrier that owns no towers of its own and instead rents space on other companies' networks. Its network comes from AT&T and T-Mobile. That is the catch. The Post reports that Musk had already asked Verizon, AT&T and T-Mobile to let SpaceX use their networks, and all three said no. People cited by the Post said such leases usually cannot pass to a new owner without the host carrier's permission. MarketWatch, writing for Morningstar, said it is not certain permission would be needed. T-Mobile CEO Srini Gopalan said on Oct. 28 he sees "no room" for an MVNO deal with SpaceX. [2] [3] [7] [4] [9] [10]
Boost would bring roughly 7.4 to 7.5 million wireless customers, depending on the source. SpaceX says it wants to become a major U.S. mobile carrier, pairing its satellites with ground networks, and recently agreed to buy $8 billion in spectrum licenses, the airwaves cell service runs on. Analyst Tim Farrar told the Post a Boost deal could let SpaceX use cell towers while its satellite signal remains too weak indoors and in cities. On X, though, Farrar questioned whether SpaceX really wants Boost and suggested it is after Dish Wireless's underlying network instead. Even with Monday's gain, MarketWatch said the shares had fallen about a fifth over the past month. [5] [8] [10] [2] [3] [7]
Summary written by Vox Populi News from the 12 sources below. See all sources
Key questions
Why did SpaceX stock go up on Nov. 2?
Shares rose 3.2% by midday after the Washington Post reported that SpaceX is in talks with EchoStar about buying Boost Mobile or using its network. The deal would help SpaceX launch its own phone service. [8] [2]
Can AT&T and T-Mobile block a SpaceX deal for Boost Mobile?
Boost rents its network from AT&T and T-Mobile, and people cited by the Washington Post said such leases usually cannot be transferred without the host carrier's permission. MarketWatch said it is not certain that permission would be required. [2] [3] [7]
Sources 12
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1AolRead on Aol (opens in a new tab)
SpaceX in talks to buy Boost Mobile or use its network, Washington Post reports
Nov 2 (Reuters) - SpaceX is in talks to buy EchoStar's wireless service Boost Mobile or gain access to its network, which it leases from AT&T and T-mobile, the Washington Post reported on Monday.
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2Washington PostRead on Washington Post (opens in a new tab)
Inside Elon Musk's plan to conquer a new industry
Elon Musk approached the heads of America's top telecom companies in recent months with a request that would help him fulfill a years-long dream.
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3Yahoo! FinanceRead on Yahoo! Finance (opens in a new tab)
SpaceX weighs Boost Mobile deal in push for Starlink phone service: Report
SpaceX (SPCX) may be attempting an end run to circumvent obstacles it's facing in getting a mobile network off the ground.
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4TheStreetRead on TheStreet (opens in a new tab)
T-Mobile CEO rules out a major deal with SpaceX
SpaceX is pursuing bigger telecom industry ambitions, and the T-Mobile CEO's latest comments add an unexpected wrinkle to those plans.
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5DeadlineRead on Deadline (opens in a new tab)
Elon Musk's SpaceX Reportedly Talking With EchoStar About A Boost Mobile Deal
Elon Musk's SpaceX has held talks with EchoStar about acquiring Boost Mobile or using its network, according to a report.
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6The VergeRead on The Verge (opens in a new tab)
SpaceX's big mobile carrier plans could reportedly involve buying Boost Mobile
SpaceX has discussed a deal with Boost Mobile to launch its own service through the budget-friendly carrier, according to a report from the Washington Post.
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7MorningstarRead on Morningstar (opens in a new tab)
In the hunt for $1 trillion of revenue, SpaceX reportedly targets Boost Mobile for a deal
To build a fourth national carrier, SpaceX needs a cellular network SpaceX has made no secret of its ambitions to build a fourth major cellular network in the U.S.
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8NASDAQ Stock MarketRead on NASDAQ Stock Market (opens in a new tab)
Why SpaceX stock is rising today
Space Exploration Technologies Corp. (NASDAQ:SPCX) stock is up 3.2% as of 12:55 p.m. ET on Monday, Nov. 2, after a report that it's looking for a new way into the wireless mobile business.
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9TechCrunchRead on TechCrunch (opens in a new tab)
SpaceX reportedly wants to buy Boost Mobile to compete with AT&T, T-Mobile, and Verizon
SpaceX is looking to buy Boost Mobile from EchoStar, according to a report from The Washington Post.
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10Phone ArenaRead on Phone Arena (opens in a new tab)
SpaceX has a new idea, but AT&T and T-Mobile would call the shots
SpaceX is apparently still hashing out how to get Starlink Mobile off the ground. It was reported a few days ago that it might buy Dish's abandoned 5G equipment.
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11Android AuthorityRead on Android Authority (opens in a new tab)
SpaceX eyes US carrier acquisition for its growing cellular ambitions
SpaceX is also reportedly looking to secure access to roughly 80,000 cell sites across the US as it builds out its wireless ambitions.
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12The How-To GeekRead on The How-To Geek (opens in a new tab)
SpaceX wants to be the 4th big U.S. carrier, and they're willing to buy Boost Mobile to get there
SpaceX is eyeing the possibility of creating a fourth national mobile service carrier in the United States.
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