According to a rumor, Elon Musk may build SpaceX’s 5G mobile network after purchasing spectrum for $17 billion

Elon Musk‘s space company, SpaceX, has made a significant agreement that may alter how mobile networks are used. For roughly $17 billion, the business has agreed to buy cellular spectrum licenses from EchoStar, a US corporation. By extending Starlink, SpaceX’s satellite internet service, into mobile connection, this spectrum will increase the likelihood of a future 5G network supported by SpaceX.

The telecom sector, which is presently dominated in the US by behemoths like Verizon, AT&T, and T-Mobile, has taken notice of the move. Musk is establishing Starlink as a possible rival in the mobile network market in addition to being a satellite internet provider with this acquisition. According to experts, rural and isolated areas—where current operators frequently offer spotty coverage—will be hardest hit, according to The Washington Post.

Musk has alluded to the overarching objective. He stated on the “All-In” podcast that “you should be able to watch videos anywhere on your phone” as a result of the new spectrum agreement.

Customers of EchoStar’s Boost Mobile will also have access to Starlink’s direct-to-cell service as part of the deal. It is anticipated that this will increase connection to areas inaccessible to traditional networks. EchoStar president Hamid Akhavan described the deal as one that would enable a “faster and more economical” rollout of satellite services for Boost subscribers.

In collaboration with T-Mobile, Starlink has previously tested a satellite messaging service that was offered for a monthly charge under the moniker “T-Satellite.” The business claims that it will soon expand its services to include phone calls and data services this year after acquiring the new spectrum.

Furthermore, Musk has not ruled out going up against the top cell operators directly. When asked if he would even think about buying a big telecom business like Verizon on the “All-In” podcast, Musk said that it was “not out of the question.”

The goal is still to use the recently purchased spectrum to integrate Starlink’s satellites with mobile phones. If it works, users might not have to rely solely on terrestrial towers in the upcoming years; instead, they might use satellites to stream material and make calls.