EchoStar gains on report of SpaceX wireless service talks
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EchoStar (ECHO) shares rose 3.7% in premarket trading Monday following a Washington Post report that SpaceX (SPCX) has held talks with the firm about launching its own signature wireless service through a potential deal involving Boost Mobile.
Elon Musk, SpaceX's chief executive, has discussed the potential deal personally, meeting with EchoStar chairman Charlie Ergen last month, according to the report, which cited people familiar with the negotiations.
The discussions could result in SpaceX acquiring Boost Mobile or gaining access to its network, which it leases from agreements with AT&T (T) and T-Mobile US (TMUS), the report said.
Shares of AT&T (T), T-Mobile US (TMUS), and Verizon (VZ) were down nearly 1% premarket.
The talks follow unsuccessful efforts by Musk to secure access to the networks of major U.S. wireless carriers. Verizon (VZ), T-Mobile, and AT&T (T) all rejected SpaceX's requests to use their networks, according to the report.
A potential agreement with EchoStar could give SpaceX an entry point into the U.S. wireless market, estimated at $235B by equity research firm MoffettNathanson. However, the proposed service may still need consent from those carriers for the service to actually launch, the people added.
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