Telecom tycoon Charlie Ergen aims to take control of wireless mobile service provider MobileX Global.
Ergen has sought federal approval for the takeover through his CONX Corp. special acquisition company, which has provided MobileX with a “strategic investment.”
While financial details were not released, the Wall Street Journal estimated the deal values MobileX at about $200 million.
Irvine-based MobileX was founded by Australian Peter Adderton
Irvine-based MobileX was founded by Australian Peter Adderton in 2021 as a way to provide no-contract wireless service to the booming mobile phone customer base (See this page).
Commercial operations started in 2023.
The Boost Mobile founder, a fixture on the OC telecoms scene for a quarter-century, will remain CEO of MobileX.
“I’m continuing to lead MobileX and I’m as committed to the business as ever,” Adderton told the Business Journal after the CONX investment was announced on Aug. 24.
He added: My focus is on scaling MobileX,
He added: “My focus is on scaling MobileX, continuing to improve our technology and app experience, expanding distribution, and building a connectivity platform that gives consumers more choice and control.”
Uses AI to Hold Down Customer Cost
MobileX says it “uses artificial intelligence to predict how much data customers need, delivering a dramatic reduction in cost while ensuring reliable speed and service.”
The company says it offers fully customizable plans starting at $3.88 a month before any taxes or surcharges, with prices rising as mobile data usage increases.
For example, a plan that costs $14.88 per
For example, a plan that costs $14.88 per month provides 10 gigabytes of high-speed data and unlimited talk and text nationwide.
It sells plans through more than 5,000 wireless dealers across the U.S., plus 3,700 Walmart stores, according to its latest figures.
MobileX operates on the Verizon network and is known as a “mobile virtual network provider.” Its customers can build their own plan, choose an unlimited option, or let MobileX’s AI recommend a plan based on actual usage.
The CONX investment strengthens our commitment to Orange
“The CONX investment strengthens our commitment to Orange County. This is where we built MobileX, our technology and our team, and that isn’t changing. What does change is the scale and remore aggressively in the business, and take what we’ve built here in Orange County to a much bigger market,” Adderton told the Business Journal
MobileX currently has approximately 107,000 paid subscribers, according to a filing with the Federal Communications Commission (FCC).
EchoStar, one of Ergen’s companies, also owns Boost Mobile, the company originally founded by Adderton. Ergen has been seeking to kickstart his mobile business with the purchases.
FCC Approval for Control Transfer Sought
MobileX and Littleton, Colorado-based CONX this month asked the FCC for permission to transfer control of MobileX from Adderton to CONX Wireless Holdings. Under the agreement, CONX will acquire 61% of MobileX with Adderton holding about 19%. Verizon will be a minority stakeholder in MobileX.
Ergen is the founder, CEO and chairman
Ergen is the founder, CEO and chairman of EchoStar, a holding company for his communications empire. He and CONX CEO Jason Kiser will join the MobileX board of directors.
The investment will help MobileX expand its AI-powered technology platform, expand distribution, and continue its fight against the one-size-fits-all pricing that has defined the wireless industry for decades.
MobileX says it was built on a simple idea: customers should pay only for what they actually use.
The deal also gives Verizon a minority stake
The deal also gives Verizon a minority stake in MobileX by converting a loan into equity.
MobileX remains small relative to AT&T, T-Mobile and Verizon, which together reportedly control more than 90% of the U.S. cellphone market.
Peter Adderton: From Down Under to OC Fixture
Peter Adderton hails from Australia but he’s held a fixed position in the Orange County telecoms sphere for some 25 years.
He started Boost Mobile back home in 2000
He started Boost Mobile back home in 2000 before he expanded it to Irvine in 2001. In 2004 U.S. Boost was acquired by Nextel Communications, which itself was bought by Sprint Corp. a year later.
One of Ergen’s companies bought Boost Mobile in 2020.
Adderton, a permanent resident of the U.S., founded Irvine-based MobileX in 2021, with the launch in 2023.
He calls it “the first truly customizable platform, which significantly brings the cost down for consumers.”
MobileX’s app-based service aims to save users money
MobileX’s app-based service aims to save users money by utilizing artificial intelligence to predict how much data customers need.
“Our AI is constantly watching your usage patterns,” Adderton told the Business Journal in 2023. “Every month, it’s recommending new, cheaper plans that better reflect your usage, which is the opposite of what other carriers try to do.”
