US mobile virtual network provider (MVNO) MobileX has confirmed it has received a strategic investment from EchoStar's co-founder and chairman Charlie Ergen's special-purpose acquisition company (SPAC), CONX Wireless Holdings.
Confirmation of the investment comes after reports emerged last week that CONX had taken a controlling stake in the MVNO.
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This was confirmed yesterday by MobileX, which said the investment "injects new capital to accelerate the company's next phase of growth."
Financial terms weren't disclosed by MobileX, though reports last week suggested it was worth around $200 million.
CONX Wireless Holdings will acquire a 60.93 percent stake of the equity and voting interests in MobileX, while Peter Adderton retains a 19.42 percent stake. Meanwhile, Verizon, which is MobileX's MVNO partner, is set to take a 12.5 percent equity stake as part of the deal.
As part of the agreement, Ergen and CONX CEO Jason Kiser will join the MobileX board of directors.
MobileX was set up in 2019 by Peter Adderton, and offers 5G mobile plans via Verizon’s network. It sells plans through 5,000 wireless dealers across the US, plus 3,700 Walmart stores, according to its latest figures.
Adderton founded Boost Mobile in 2000 and sold it to Nextel in 2003. The company has been owned by EchoStar since 2023.
The company said that the investment will enable MobileX to "expand its AI-powered technology platform, grow distribution, and continue its fight against the one-size-fits-all pricing that has defined the wireless industry for decades."
"The opportunity ahead is about more than just wireless costs; it's about redefining how connectivity is delivered and what consumers should expect," said Peter Adderton, founder and CEO of MobileX. "CONX shares this vision, and their investment gives us the capital and resources to build on our progress and compete at a much greater scale."
Ergen's investment in MobileX comes amid EchoStar's ongoing troubles. In recent months, the company has filed for Chapter 11 bankruptcy protection for both its Dish and Hughes units. Parent company EchoStar has sold $40 billion worth of spectrum to AT&T and SpaceX in the last 12 months.
DCD spoke to MobileX founder and CEO Peter Adderton earlier this year. Read his thoughts on the MVNO market here.
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