SpaceX is expanding its terrestrial wireless ambitions by pursuing 80,000 cell sites and exploring a potential acquisition of Boost Mobile, moves that could position Starlink to compete directly with Verizon, AT&T, and T-Mobile as a nationwide carrier despite massive projected infrastructure costs.
Elon Musk’s space venture is looking past the atmosphere and onto the ground to secure a permanent footing in the American telecommunications market. While satellite coverage has traditionally served rural outposts and remote stretches where traditional infrastructure fails, SpaceX is now engineering a much larger terrestrial footprint.
SpaceX Targets 80,000 Cell Sites and Boost Mobile Negotiations
The company is reportedly negotiating to secure access to at least 80,000 cell sites nationwide, engaging with major cellular infrastructure providers such as Crown Castle, which owns approximately 40,000 towers across the country, as reported by Fox News. For perspective, the country has roughly 175,000 traditional cell towers, according to SNL Kagan. Although cell sites and physical towers are distinct, reaching that 80,000-site target would represent a substantial expansion for an operator looking to route traffic efficiently.
SpaceX is in talks to buy Boost Mobile or use its network, The Washington Post reports, a possible shortcut into the $235 billion US wireless market.The report• The Washington Post published it at 5:00am ET (2:00am PT) today, citing people familiar with the talks• SpaceX… pic.twitter.com/TvzXSTMVUa
At the same time, the Washington Post reported that SpaceX has held discussions in recent months with EchoStar regarding a potential deal to acquire its discount carrier subsidiary, Boost Mobile, or otherwise leverage its access to established networks. Musk met personally with EchoStar chairman Charlie Ergen last month to discuss the potential agreement. Boost Mobile operates with roughly 7 million subscribers and maintains a cloud-native 5G core software stack, providing a potential shortcut around the virtual network operator barriers erected by the incumbent carriers.
Financial Projections and the High Cost of Spectrum
Building a network capable of challenging the dominant national carriers comes with a staggering price tag. Telecommunications expert William Webb estimated in an interview with Benzinga that SpaceX could need an additional $120 billion to $130 billion to build out a mobile network competitive with T-Mobile, AT&T, and Verizon. That figure includes an estimated $30 billion to $40 billion for physical network infrastructure, alongside up to $90 billion more in wireless spectrum purchases to match incumbent capacity.
SpaceX has already agreed to nearly $28 billion in spectrum transactions, including an approximately $20 billion deal with EchoStar and an $8 billion agreement to acquire nationwide 800 MHz low-band spectrum from Grain Management. Even so, industry analysts note that these acquisitions grant the company only a fraction of the spectrum held by a typical major operator. BNP Paribas offered a similarly cautious assessment, projecting at least $100 billion in capital and operating expenditures before revenue generation, excluding spectrum and financing costs.
The real cost is the spectrum.
William Webb, telecommunications expert, via Benzinga
By contrast, Recon Analytics founder Roger Entner estimated that SpaceX could establish a substantial rural-first network for $10 billion to $15 billion, excluding further spectrum acquisitions. Yet experts emphasize that urban markets present a different operational hurdle. Because millions of mobile devices cluster densely in cities, direct-to-satellite connections remain inefficient without a robust ground-based layer.
Incumbent Pushback and Regulatory Hurdles
The major wireless carriers have publicly questioned the feasibility of Musk’s timeline, pointing to the massive logistical hurdles required to match established network performance. Verizon chief executive Dan Schulman told analysts on a third-quarter earnings call that building a competing network would take at least four to six years and cost between $300 billion and $500 billion, adding that SpaceX would need tens of thousands of large cell sites, extensive backhaul, and comprehensive retail systems.
Photo: Washington Post
There is no magic wand. There’s no secret sauce. There’s no shortcut.
SpaceX targets 80,000 cell sites — and more telecom news
Dan Schulman, Chief Executive Officer, Verizon, via Billionaires
T-Mobile chief executive Srini Gopalan similarly dismissed the threat of a wholesale arrangement during an earnings conference call, stating that I see no room for an MVNO with SpaceX. Furthermore, major carriers and trade groups like the CTIA are lobbying the Federal Communications Commission to protect existing spectrum rules.
SpaceX faces multiple regulatory check-points before its vision can materialize. Its nationwide spectrum agreement with Grain Management still requires formal FCC approval, and any attempt to transfer existing carrier lease agreements to a new operator without incumbent permission could trigger prolonged litigation.
Senior Editor, Economy
An award-winning financial journalist and analyst, Daniel brings sharp insight to economic trends, markets, and policy shifts. He is recognized for breaking complex topics into clear, actionable reports for readers and investors alike.
