Elon Musk has raised the possibility of SpaceX entering the US mobile phone market by buying an established telecom company. Speaking to investors on November 6, 2026, Musk said SpaceX could use a major carrier’s wireless spectrum far more efficiently than current operators.
Musk made the comments during a video discussion with investor Ron Baron at the annual Baron Investment Conference in New York. He said SpaceX could use its existing spectrum to expand its services. However, he did not name any company that could become a takeover target.
The SpaceX chief said a purchase would only make sense if his company could use the available airwaves much more effectively. He suggested that SpaceX could make the spectrum work up to ten times better than its current owner.
His remarks quickly attracted attention across the telecom and technology sectors. Shares of T-Mobile rose 0.88% on Friday, while Verizon and AT&T each fell 0.89%. SpaceX shares gained 8.62% to close at $134.27.
However, SpaceX had faced pressure in the wider market before the announcement. Its shares had fallen 19.89% over the previous month during a broader decline in technology stocks. This makes it difficult to link the latest price movement only to Musk’s comments.
SpaceX already holds important wireless spectrum rights that could support its direct-to-phone services. Spectrum refers to licensed radio frequencies used by mobile networks and satellites to send signals. Companies need legal access to these frequencies to provide wireless services.
In September 2025, SpaceX agreed to buy AWS-4 and H-block spectrum licenses from EchoStar for about $17 billion. The deal included $8.5 billion in cash and another $8.5 billion in SpaceX shares.
SpaceX has also agreed to buy nationwide 800 MHz spectrum licenses. The transaction is expected to close during the first half of 2027. There have also been reports of talks involving Boost Mobile, although no agreement has been confirmed.
The amount of spectrum SpaceX controls remains much smaller than the holdings of major US wireless operators. Deutsche Telekom chief executive Tim Hoettges discussed this issue during the company’s November 5 earnings call.
Hoettges said SpaceX could need at least 200 billion euros, or around $220 billion, to compete directly with established US telecom companies. Deutsche Telekom controls T-Mobile, giving the company a direct interest in the possible entry of SpaceX into the market.
According to Hoettges, SpaceX holds about 76 MHz of spectrum, compared with roughly 400 MHz controlled by T-Mobile. He also estimated that renting space on existing telecom towers could cost SpaceX between $20 billion and $30 billion.
These costs show that buying spectrum alone would not be enough to build a nationwide mobile network. SpaceX would also need access to towers, network equipment, customer support systems, and other services.
The financial size of a possible takeover would also be significant. At the latest market close, T-Mobile, Verizon, and AT&T had a combined value of about $507 billion. SpaceX was valued at roughly $1.77 trillion, making a large share-based deal possible in financial terms.
However, buying a telecom carrier would bring major responsibilities. Verizon and AT&T have large debt burdens, estimated at $166.2 billion and $159.6 billion, respectively. A buyer would also inherit employees, labor agreements, retail stores, and existing landline networks.
Regulatory approval could create another major challenge. Any large telecom takeover would face review by antitrust authorities and the Federal Communications Commission. Regulators would examine competition, consumer protection, and the effect on the US communications market.
The possible threat from SpaceX is already influencing investor views of established carriers. T-Mobile shares have fallen 18.46% since the start of the year. Its third-quarter results also reflected concerns about SpaceX becoming a stronger competitor in the mobile market.
Meanwhile, satellite company Viasat gained 7.7% to $63.95 after releasing its financial results. The company’s finance chief said it had 100,000 US fixed broadband subscribers at the end of the quarter. Customers paid an average of $111 per month, while revenue from fixed services fell 23%.
Investor Sawyer Merritt also pointed to a longer-term decline in Viasat’s customer base. The company had 603,000 subscribers in September 2020, when Starlink opened its service to the public. That represents a decline of about 83%.
For SpaceX investors, the next major development will be the planned 800 MHz spectrum transaction. Its expected closing in the first half of 2027 could provide more information about the company’s mobile strategy.
For now, Musk has not confirmed plans to buy a US telecom carrier. Any such move would require significant investment, regulatory approval, and a clear plan to compete with established operators. Until SpaceX makes a formal announcement or regulatory filing, a major telecom takeover remains a possibility rather than a confirmed deal.
