Elon Musk has signaled that SpaceX could expand its presence in the U.S. wireless market by acquiring an established telecommunications company, a move that could have implications for major carriers such as Verizon, AT&T and T-Mobile.
Musk made the suggestion during a video appearance at the Baron Investment Conference on Nov. 6. “We could just acquire that legacy telco and use their spectrum, you know, ten times more effectively,” he said. Although he did not identify a potential acquisition target or provide a specific timeline, his remarks drew attention from investors. SpaceX shares climbed 8.62% to $134.27, despite having fallen nearly 20% over the previous month.
SpaceX has already made significant investments to enter the wireless communications market. The company reportedly agreed to spend approximately $17 billion to acquire spectrum licenses, including AWS-4 and H-block licenses, from EchoStar in a deal announced in September 2025. The agreement included $8.5 billion in cash and $8.5 billion worth of SpaceX stock.
SpaceX agreed to acquire a nationwide portfolio of 800 MHz spectrum licenses, with the transaction expected to close in the first half of next year. These lower-frequency airwaves can cover longer distances and provide better signal penetration inside buildings.
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In simple terms, spectrum refers to the radio frequencies wireless companies use to transmit calls, messages and internet data. Companies need access to these frequencies to provide mobile services.
Musk’s comments also appeared to affect shares of major wireless carriers. T-Mobile shares gained 0.88% on Nov. 6, while Verizon and AT&T shares declined by 0.89%.
According to TheStreet, SpaceX has also held discussions with telecommunications tower operators about accessing approximately 80,000 sites across the country. Such infrastructure could help the company expand its wireless coverage without having to build an entirely new network.
SpaceX is already testing part of its strategy through its direct-to-cell satellite service, which operates in selected markets through a partnership with T-Mobile. The technology allows compatible mobile phones to connect to satellites, potentially extending coverage to areas with limited access to traditional cellular networks.
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Despite its growing investments, SpaceX faces significant challenges before it can compete directly with established wireless carriers. Deutsche Telekom CEO Tim Höttges said during a November earnings call that SpaceX held approximately 79 MHz of low- and mid-band spectrum, compared with T-Mobile’s 400 MHz. He described SpaceX’s current position as a “dirt track” compared with T-Mobile’s “autobahn.”
Höttges estimated that SpaceX would need at least $200 billion to compete with established U.S. wireless carriers. That investment could cover spectrum, network towers and other infrastructure required to operate a nationwide service.
AT&T reported $159.6 billion in total debt as of Sept. 30, 2025, while Verizon disclosed $136.1 billion in unsecured debt. Any major acquisition would also require approval from the Federal Communications Commission and could face antitrust scrutiny.