Key Takeaways
- Elon Musk said SpaceX could “just acquire that legacy telco” if it can make better use of a carrier’s spectrum, which puts AT&T, Verizon and T-Mobile in the frame.
- EchoStar sold SpaceX its AWS-4 and H-block licenses for about $17 billion, with up to $8.5 billion of the price paid in SpaceX stock valued at $212 a share.
- That stock gives EchoStar shareholders a share of SpaceX’s upside, from mobile and from the AI compute business that now brings in more than half of SpaceX’s revenue.
- The risk sits with Boost Mobile, which AT&T and T-Mobile would reportedly push off their spectrum if Musk moves to take it over.
SpaceX (SPCX) has spent the past year buying spectrum for a phone service. Now Elon Musk is floating a faster way to get more. (Buy the phone company.)
Musk’s comments were featured on this week’s episode of the Moonshots podcast with Peter Diamandis:
“I think SpaceX will be able to get very far with the spectrum that it’s acquired. But, you know, at a certain point, if we’re able to make much better use of the spectrum than, say, a legacy telco is, we could just acquire that legacy telco and use the spectrum, you know, 10 times more effectively.”
The obvious targets are the big carriers: AT&T (T), Verizon (VZ) and T-Mobile (TMUS). But I’d look first at EchoStar (ECHO), which sold SpaceX much of the spectrum Musk is talking about and took a big part of the price in SpaceX stock.
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EchoStar already has a piece of Musk’s plan
In September 2025, EchoStar agreed to sell its AWS-4 and H-block licenses to SpaceX for about $17 billion. Up to $8.5 billion of that is paid in SpaceX stock, valued at $212 a share in the agreement. The FCC approved the sale in May.
SpaceX is still adding spectrum. On Nov. 10, the FCC accepted its filing to buy 800 MHz licenses from Grain Management, a deal the Wall Street Journal reported could cost $8 billion.
So every step SpaceX takes toward a full phone business builds on the licenses EchoStar sold it, from more spectrum to buying a carrier outright. AT&T and Verizon face a new rival, while EchoStar is being paid in that rival’s stock.
Mobile is only part of what EchoStar is getting
Of course, EchoStar’s SpaceX shares are worth whatever SpaceX stock is worth, and phones are a small part of that today. SpaceX’s quarterly revenue went from $5.58 billion in the quarter EchoStar signed the deal to $14.6 billion in the third quarter of 2026:
More than half of that $14.6 billion, $7.56 billion, came from renting out AI compute. And on its third-quarter call, SpaceX moved its next-generation Starlink Mobile service to early 2028, from the end of 2027.
So for now, EchoStar’s stake is mostly a bet on SpaceX’s AI buildout, with mobile as the longer-dated upside. That’s helped lately: SpaceX stock rallied nearly 15% in two days as Musk floated a $500 billion run rate. But it also means the stake can fall on AI news that has nothing to do with phones.
Boost could get squeezed
EchoStar still owns Boost Mobile, and that’s where SpaceX’s push could cost it. Semafor reported that AT&T and T-Mobile “will kick Boost Mobile off their spectrum if Musk moves forward with Boost takeover,” citing sources. The carriers have already shut Musk out once. Verizon, AT&T and T-Mobile reportedly turned down his requests to run his mobile service on their networks, and in October they announced a joint satellite partnership of their own.
So a SpaceX that competes with the carriers could hurt Boost about as much as it lifts EchoStar’s stake. But that same report suggests a Boost takeover is being discussed. If Musk wants a carrier fast, EchoStar is the seller, and its most exposed business becomes one more asset sold to SpaceX.
EchoStar holds the better hand
The way I see it, EchoStar is better placed for Musk’s mobile push than any of the big carriers. It’s the only company here taking a piece of SpaceX as payment, and Boost gives Musk a ready-made carrier to buy if he wants one. AT&T and Verizon just get a well-funded new rival.
This won’t happen fast, though. EchoStar’s annual report puts the deal’s second and final step around Nov. 30, 2027, and the FCC takes public comment on SpaceX’s 800 MHz deal in December. Until Starlink Mobile launches, SpaceX’s AI results will probably move EchoStar’s stake more than anything Musk says about phones.
So what is EchoStar stock actually worth?
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Disclaimer:
Please note that the articles on TIKR are not intended to serve as investment or financial advice from TIKR or our content team, nor are they recommendations to buy or sell any stocks. We create our content based on TIKR Terminal’s investment data and analysts’ estimates. Our analysis might not include recent company news or important updates. TIKR has no position in any of the stocks mentioned. Thank you for reading, and happy investing!
