MobileX Confirms Strategic Investment From Charlie Ergen’s CONX

US mobile virtual network operator (MVNO) MobileX has confirmed that it received a strategic investment from CONX, the special-purpose acquisition company (SPAC) associated with EchoStar co-founder and chairman Charlie Ergen.

The announcement follows reports that CONX had taken a controlling stake in MobileX. MobileX said the investment provides new capital to support its next phase of growth, although it did not disclose the financial terms. Reports had previously valued the company at approximately $200 million.

As part of the agreement, Ergen and CONX CEO Jason Kiser will join MobileX’s board of directors.

MobileX’s business

Peter Adderton founded MobileX in 2019. The company provides 5G mobile plans using Verizon’s network and sells its services through 5,000 wireless dealers in the US, as well as 3,700 Walmart stores, according to its latest figures.

Adderton previously founded Boost Mobile in 2000 and sold it to Nextel in 2003. EchoStar has owned Boost Mobile since 2023.

MobileX said the new investment will support the expansion of its AI-powered technology platform and distribution network. The company also plans to continue developing alternatives to uniform wireless pricing models.

“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.”

Investment follows EchoStar financial challenges

Ergen’s investment comes as EchoStar addresses financial difficulties. In recent months, the company has filed for Chapter 11 bankruptcy protection for its Dish and Hughes units.

During the past 12 months, EchoStar has also sold approximately $40 billion worth of spectrum to AT&T and SpaceX.