AST SpaceMobile CEO Publishes Letter to Partners, Shareholders, and Future Space-Based Cellular Broadband Network Users
AST SpaceMobile (NASDAQ: ASTS) has announced a strategic partnership with Verizon, complementing its existing agreement with AT&T. This collaboration aims to provide 100% geographical coverage throughout the continental U.S. using the 850 MHz low-band spectrum, renowned for its superior signal propagation and penetration. The partnerships will enable AST SpaceMobile to bridge connectivity gaps, ensuring reliable cellular broadband service even in remote areas. Additionally, AST SpaceMobile's Next Generation BlueBird satellites, featuring the AST5000 ASIC architecture, will enhance processing bandwidth, facilitating seamless global cellular broadband services. The company is also engaging with other mobile network operators to expand its global reach, targeting over 2.8 billion subscribers.
- Strategic partnership with Verizon complements existing AT&T agreement, enhancing market position.
- Use of 850 MHz low-band spectrum provides superior signal propagation and penetration.
- Aiming for 100% geographical coverage in the continental U.S., targeting a valuable market.
- Next Generation BlueBird satellites with AST5000 ASIC architecture improve processing bandwidth.
- Collaborations with over 45 mobile network operators, including Vodafone, Rakuten, and Google, aiming to reach 2.8 billion subscribers.
- Reliance on partnerships with AT&T and Verizon may pose risks if these alliances falter.
- High costs and technical challenges associated with deploying and maintaining satellite infrastructure.
- Potential regulatory hurdles in utilizing the low-band spectrum for satellite communication.
Insights
AST SpaceMobile's recent strategic partnership with Verizon enhances their previous agreement with AT&T, unlocking significant capital and potential. The infusion of
However, investors should consider the capital-intensive nature of satellite operations and the competitive landscape. With significant upfront costs and uncertainties in execution, the financial risks are non-negligible. Yet, the support from industry leaders like AT&T and Verizon mitigates some of these risks. Financially, if AST achieves its goals, the valuation could significantly appreciate, but investors must weigh the
The utilization of the 850 MHz low-band spectrum is a strategic move. This frequency's exceptional propagation characteristics enable better signal penetration through obstacles and over long distances, important for nationwide coverage. The low-band spectrum's ability to integrate seamlessly with current smartphones is a significant technical advantage, as it eliminates the need for specialized equipment.
Further, AST's ASIC architecture for the Next Generation BlueBird satellites is notable. Custom-designed for low power and high processing bandwidth, this tech innovation supports the ambitious goal of global satellite broadband coverage. This architecture could be a game-changer in terms of efficiency and scalability within the satellite communications industry, potentially setting new industry benchmarks.
The strategic partnerships with AT&T and Verizon position AST SpaceMobile favorably in the competitive telecommunications market. These alliances leverage the existing spectrum and infrastructure, broadening coverage without reallocating terrestrial resources. This approach aligns well with the growing demand for reliable connectivity, particularly in underserved areas.
From a market perspective, the ability to provide uninterrupted cellular service in remote and rural locations addresses a critical need, potentially capturing a previously untapped customer base. Additionally, the involvement of major players like AT&T and Verizon not only validates AST's technology but also enhances its credibility and market potential. This dual-spectrum strategy could position AST as a pivotal player in the hybrid satellite-terrestrial broadband market.
AST SpaceMobile planned coverage map (Graphic: Business Wire)
Dear Fellow Partners, Shareholders, and Future Space-Based Cellular Broadband Network Users,
The recent announcement of a strategic partnership with Verizon is another leap forward for AST SpaceMobile. It builds upon the momentum of our earlier flagship commercial agreement with AT&T, not only by securing additional capital in the form of prepayments and convertible notes, but more importantly, by accelerating our mission to eliminate connectivity gaps across
With both industry leaders – AT&T and Verizon – on board, AST SpaceMobile is now uniquely positioned to achieve a groundbreaking feat: target
The key to unlocking this ubiquitous coverage lies in the power of the premium 850 MHz low-band spectrum, which offers superior signal penetration in the low band cellular range. AT&T and Verizon together will share with AST SpaceMobile a portion of their respective bands of 850 MHz low-band spectrum to enable nationwide satellite coverage.
This is where this dual partnership comes in. This strategic move ensures wider coverage via shared spectrum that benefits both AT&T’s and Verizon’s subscribers.
Why Low-Band – 850 MHz Spectrum - A Winning Combination for Nationwide Coverage
The 850 MHz low-band spectrum offers several advantages that make it the perfect choice for our space-based cellular broadband network:
Exceptional Propagation: Low-band frequencies travel longer distances and penetrate deeper into buildings and through foliage compared to higher frequencies. This ensures our signals will reach you wherever you are, even in remote areas with limited terrestrial infrastructure.
Superior Coverage: The longer wavelengths of low-band spectrum allow for wider signal coverage, minimizing dead zones and dropped calls. This will translate to a more consistent and reliable cellular experience, no matter your location.
Seamless Integration with Existing Devices: The 850 MHz band is already utilized by existing cellular networks and compatible with today’s standard smartphones. That means you won't need any specialized equipment to access our space-based broadband – it will work seamlessly with your current phone.
What does this mean for mobile phone users? Less dropped calls, frustrating dead zones, or missed connections. Whether you are scaling a mountain peak, exploring a national park, or simply commuting to work, you'll have reliable cellular access wherever you go within
Transparent Technology: Whether you are an AT&T or Verizon subscriber, the space-to cell connection is designed to work transparently, meaning you won't need to worry about which carrier's 850 MHz spectrum is being used.
Here's the breakdown:
Complementary Spectrum, Unified Experience: We employ a segment of the 850 MHz band in conjunction with our terrestrial operations. Additionally, the complementary spectrum of both AT&T and Verizon is utilized without reallocating any spectrum resources from the earth/ground/land-based networks of either company.
Largest Commercial Communications Satellite Ever Deployed in Low Earth Orbit: The massive antenna array acts as a giant cell tower in space, with a broader and stronger signal that can reach standard smartphones directly, eliminating the need for specialized equipment.
The power and scale of the satellite array pave the way for a truly global solution. With a constellation of AST SpaceMobile satellites in low Earth orbit, we will be able to provide reliable cellular broadband coverage wherever is needed. This translates to bridging the digital divide on a massive scale, ensuring everyone, everywhere has access to essential communication services.
Innovative ASIC Architecture: As the cornerstone of AST SpaceMobile's Next Generation BlueBird satellites, the AST5000 ASIC is a novel, AI ready, custom, and low-power architecture developed to enable up to a tenfold improvement in processing bandwidth on each satellite, unlocking opportunities for seamless space-based cellular broadband services worldwide.
Mobile User Experience: You’ll have a seamless experience with either carrier. You'll simply connect to AST SpaceMobile's network through your carrier, AT&T or Verizon, for reliable cellular service for a smooth and worry-free experience.
This collaboration highlights the effectiveness of collective action. By combining AST SpaceMobile's innovative space-based network with the extensive terrestrial networks and expertise of both AT&T and Verizon, we are creating a solution that benefits everyone. Consumers gain unparalleled access to space-based cellular broadband, businesses can expand into previously unreachable regions, and first responders and rural communities will no longer be left behind in the digital age.
This is just the beginning. We remain dedicated to fostering similar partnerships with other mobile network operators, aiming to bridge the digital divide on a global scale. Through strategic agreements with AT&T and Verizon, along with Vodafone, Rakuten, Google, American Tower, Bell Canada, and more than 45 mobile network operators, we’ve established a strong foundation. These partnerships unite us with networks that serve more than 2.8 billion subscribers, propelling us closer to achieving this ambitious goal.
Together, we're building a future where connectivity empowers everyone, everywhere. Thank you for your continued support.
Sincerely,
Abel Avellan
Founder, Chairman, and CEO
AST SpaceMobile
Forward-Looking Statements
This communication contains “forward-looking statements” that are not historical facts, and involve risks and uncertainties that could cause actual results of AST SpaceMobile to differ materially from those expected and projected. These forward-looking statements can be identified by the use of forward-looking terminology, including the words “believes,” “estimates,” “anticipates,” “expects,” “intends,” “plans,” “may,” “will,” “would,” “potential,” “projects,” “predicts,” “continue,” or “should,” or, in each case, their negative or other variations or comparable terminology. These forward-looking statements involve significant risks and uncertainties that could cause the actual results to differ materially from the expected results. Most of these factors are outside AST SpaceMobile’s control and are difficult to predict.
Factors that may cause such differences include, but are not limited to: (i) expectations regarding AST SpaceMobile’s strategies and future financial performance, including AST’s future business plans or objectives, expected functionality of the SpaceMobile Service, anticipated timing of the launch of the Block 1 Bluebird satellites, anticipated demand and acceptance of mobile satellite services, prospective performance and commercial opportunities and competitors, the timing of obtaining regulatory approvals, ability to finance its research and development activities, commercial partnership acquisition and retention, products and services, pricing, marketing plans, operating expenses, market trends, revenues, liquidity, cash flows and uses of cash, capital expenditures, and AST’s ability to invest in growth initiatives; (ii) the negotiation of definitive agreements with mobile network operators relating to the SpaceMobile service that would supersede preliminary agreements and memoranda of understanding and the ability to enter into commercial agreements with other parties or government entities; (iii) the ability of AST SpaceMobile to grow and manage growth profitably and retain its key employees and AST SpaceMobile’s responses to actions of its competitors and its ability to effectively compete; (iv) changes in applicable laws or regulations; (v) the possibility that AST SpaceMobile may be adversely affected by other economic, business, and/or competitive factors; (vi) the outcome of any legal proceedings that may be instituted against AST SpaceMobile; and (vii) other risks and uncertainties indicated in the Company’s filings with the SEC, including those in the Risk Factors section of AST SpaceMobile’s Form 10-K filed with the SEC on April 1, 2024.
AST SpaceMobile cautions that the foregoing list of factors is not exclusive. AST SpaceMobile cautions readers not to place undue reliance upon any forward-looking statements, which speak only as of the date made. For information identifying important factors that could cause actual results to differ materially from those anticipated in the forward-looking statements, please refer to the Risk Factors incorporated by reference into AST SpaceMobile’s Form 10-K filed with the SEC on April 1, 2024. AST SpaceMobile’s securities filings can be accessed on the EDGAR section of the SEC’s website at www.sec.gov. Except as expressly required by applicable securities law, AST SpaceMobile disclaims any intention or obligation to update or revise any forward-looking statements whether as a result of new information, future events or otherwise.
View source version on businesswire.com: https://www.businesswire.com/news/home/20240701476388/en/
Investor:
Scott Wisniewski
investors@ast-science.com
Media:
Allison
Eva Murphy Ryan
917-547-7289
AstSpaceMobile@allisonpr.com
Source: AST SpaceMobile, Inc.
FAQ
What is the significance of AST SpaceMobile's partnership with Verizon?
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