Elon Musk finds a backdoor into the $235-billion wireless market after being rejected by every major carrier

Becky RobertsonMon, November 2, 2026 at 11:00 PM UTC

0

The telecommunications market is among those particularly susceptible to oligopoly, with limited infrastructure managed by a handful of players who set the terms, conditions and prices.

While this is generally considered undesirable for consumers, it also poses a problem for anyone aiming to get into the sector; just ask Elon Musk. The Starlink bigwig has been trying to expand the business beyond satellite and into cellular service for months.

Must Read -

Dave Ramsey warns nearly 50% of Americans are making 1 big Social Security mistake. Here’s what it is and 3 simple steps to fix it ASAP

A single line on your car insurance policy could be inflating your premium by up to 30% — here's what to change

Jeff Bezos backs a platform that lets anyone invest in rental homes for as little as $100 — 6 ways to build wealth like a landlord without actually being one

The main hurdle has been acquiring the rights to operate within the mobile frequency range. While infrastructure sharing is common between telecoms, AT&T, Verizon and T-Mobile all denied Musk’s recent requests to piggyback off their lines.

With no other options, the Tesla and SpaceX CEO found a way to forge his own path.

One deal to get wireless capacity and another to borrow it

Earlier this month, Starlink entered a deal with Grain Management to buy its own portion of low-band spectrum. It’s a move Musk has touted as “the last critical piece of the spectrum puzzle needed to provide complete phone coverage in America.”

The ownership, which is set to be finalized early next year, means the brand can offer more coverage without piggybacking off other carriers. Without it, Starlink’s satellites have limited signal penetration.

On top of that acquisition, it was revealed this week that Musk could be partnering with Boost Mobile to lease some of its capacity. Some experts have argued that Boost’s existing contracts with AT&T prevent this sort of “back door” entry.

Advertisement

As one critic told Investor’s Business Daily, another possibility would give SpaceX some legal ground to stand on: an outright purchase of Boost and its existing agreements.

“If AT&T threatens to cancel the deal, SpaceX could try to use that to bolster a (legal) argument that the telcos are acting anti-competitively,” Sam McHugh, analyst at BNP Paribas, told the outlet on Nov. 2.

Subscribe to Moneywise: Get Warren Buffett’s best investing lessons in 1 free guide

Federal Communications Commission regulations

As far as following regulations, Starlink was granted Federal Communications Commission (FCC) approval to offer wireless direct-to-cell service back in 2024. That was only as part of a collaboration with T-Mobile to offer free satellite phone service to customers living in dead zones.

Since then, the FCC has given Starlink the green light to launch 15,000 satellites capable of direct-to-cell connectivity without any additional hardware on the user’s end or further collaboration and to carry mobile service internationally.

Next will be the procurement of cell towers to transmit on the 800mhz spectrum — something that has been in the works, according to insiders who spoke to Bloomberg. Musk is in talks to obtain about 80,000 cell sites. If successful, this would “solidify the rocket and satellite giant’s path toward building a fourth nationwide wireless carrier,” according to the unnamed sources.

The licence transfers for the Grain Management and Boost transactions will also require FCC review and approval. Meanwhile, rules to broaden low-frequency spectrums, thereby boosting satellite coverage potential, are also in the pipeline at the regulatory level.

What To Read Next -

Here’s the average income of Americans by age in 2026. Are you keeping up or falling behind?

Your Social Security ‘Trump Bump’ in 2027 will be one of the biggest in 25 years — but there’s a serious catch no one’s talking about

Robert Kiyosaki issued grim warning for baby boomers. Many could be ‘wiped out’ and homeless ‘all over’ the country. How to protect yourself now

The tax breaks in Trump's 'big beautiful bill' expire after 2028. Here are 4 moves to make before the window closes

This article provides information only and should not be construed as advice. It is provided without warranty of any kind.

Original Article on Source

Source: “AOL Money”