Should SpaceX Buy T-Mobile and Build a Direct-to-Device Global Internet Giant?
The idea seems brilliant on the surface, but the prospect may not be all it's cracked up to be.
Overview
There's no denying the two companies could work together as one. T-Mobile's (NASDAQ: TMUS) mobile phone service doesn't just serve voice customers. These subscribers also use their mobile devices to wirelessly connect to the internet.
T-Mobile even offers stand-alone at-home wireless broadband service, as does Space Exploration Technologies' (NASDAQ: SPCX), or SpaceX's, Starlink. The two brands are already working together to offer their common customers constant wireless internet access where it isn't readily available from a more mainstream provider.
Details
The counterargument, of course, is cost and complexity. SpaceX is already a satellite-based broadband service, an artificial intelligence infrastructure company, and a space-launch solutions provider. It may also soon own Elon Musk-led electric vehicle maker Tesla (NASDAQ: TSLA), which is now developing AI-powered robots. Adding a mobile phone brand to the mix will only further loosen its focus.
Source
Originally published at www.fool.com.