FCC Approves AST SpaceMobile Launch of First Commercial Satellites, Each the Largest-Ever Communications Array to be Deployed Commercially in Low Earth Orbit

Rhea-AI Summary

AST SpaceMobile (NASDAQ: ASTS) has received FCC approval to launch and operate its first five commercial BlueBird satellites, marking a significant milestone for the company's space-based cellular broadband network. This initial license allows AST SpaceMobile to use V, S, and UHF frequencies for gateway, feeder link, and telemetry operations.

The company aims to provide 100% nationwide coverage of the continental United States using premium cellular spectrum. AST SpaceMobile has partnerships with major telecom companies like AT&T, Verizon, and Vodafone, among others, covering over 2.8 billion existing subscribers globally. The first five BlueBird satellites, the largest-ever commercial communications arrays to be deployed in low Earth orbit, are ready for shipment to Cape Canaveral, with a 7-day launch window in September.

Positive

• FCC approval for launching and operating the first five commercial BlueBird satellites
• Partnerships with major telecom companies covering over 2.8 billion existing subscribers
• Targeting 100% nationwide coverage of the continental United States
• Strategic investments secured from AT&T, Verizon, Google, and Vodafone in 2024
• New contract award with the United States Government through a prime contractor

Negative

• None.

Insights

Telecommunications Expert

The FCC's approval for AST SpaceMobile to launch and operate its first five commercial BlueBird satellites marks a significant milestone in the development of space-based cellular broadband. This technology has the potential to revolutionize global connectivity, particularly in underserved areas.

The ability to provide direct-to-smartphone connectivity from space could be a game-changer for the telecom industry. It addresses the longstanding challenge of coverage gaps in rural and remote areas, potentially reducing infrastructure costs for traditional terrestrial networks. However, the success of this technology will depend on factors such as signal strength, latency and capacity when serving a large number of users simultaneously.

The backing from major telecom players like AT&T, Verizon and Vodafone lends credibility to AST SpaceMobile's approach. Their involvement suggests a strategic shift in how these companies view future network expansion, possibly integrating space-based solutions with traditional infrastructure.

Satellite Technology Analyst

AST SpaceMobile's BlueBird satellites represent a technological leap in commercial satellite communications. Being the largest-ever commercial communications arrays to be deployed in low Earth orbit, they push the boundaries of satellite design and functionality.

The success of these satellites could redefine the economics of providing global broadband coverage. Traditional satellite internet often requires specialized equipment, but AST SpaceMobile's direct-to-smartphone approach could significantly lower the barrier to entry for users.

However, challenges remain. The company must demonstrate that its technology can deliver reliable service at scale, manage potential interference with terrestrial networks and navigate the complex regulatory landscape across different countries. The September launch window will be a important test of the company's capabilities and could set the stage for future expansion of the constellation.

Investment Analyst

From an investment perspective, AST SpaceMobile's progress is noteworthy. The FCC approval and impending satellite launch represent de-risking events that could positively impact the company's valuation. The strategic investments from major telecom and tech companies, including AT&T, Verizon, Google and Vodafone, provide both financial support and industry validation.

However, investors should consider that space-based cellular broadband is still an unproven market. The company's ability to monetize its technology effectively and achieve profitability remains to be seen. The capital-intensive nature of satellite deployment and potential regulatory hurdles in various countries could pose significant challenges.

The company's agreements with over 45 mobile network operators, covering a potential 2.8 billion subscribers, suggest a large addressable market. However, the revenue model and potential market penetration rates will be critical factors to watch as the service becomes operational.

The FCC grant paves the way for space-based cellular broadband services for everyday smartphones in the United States

MIDLAND, Texas--(BUSINESS WIRE)-- AST SpaceMobile, Inc. (“AST SpaceMobile”) (NASDAQ: ASTS), the company building the first and only space-based cellular broadband network accessible directly by everyday smartphones, designed for both commercial and government applications, today announced that the U.S. Federal Communications Commission (FCC) has granted an initial license for space-based operations in the United States. With this initial license, AST SpaceMobile is now authorized to launch and operate V, S and UHF frequencies to support gateway, feeder link and telemetry, tracking, and control operations for the first five commercial BlueBird satellites.

AST SpaceMobile first five commercial satellites, BlueBird 1-5 (Photo: Business Wire)

This FCC grant represents a critical step to advancing several important goals shared by AST SpaceMobile and the Commission, including closing the digital divide, expanding access to emergency communications, accelerating digital transformation and advancing U.S. leadership in direct-to-device regulation. This step follows the March 2024 update of AST SpaceMobile’s constellation filings with the International Telecommunication Union (ITU) and related filings with the FCC, placing the planned commercial satellites under the jurisdiction of the United States.

“This regulatory milestone is a significant step to targeting 100% nationwide coverage from space of the continental United States on premium cellular spectrum,” said Scott Wisniewski, President of AST SpaceMobile. “Through our strategic partnerships with companies like AT&T, Verizon, Vodafone and our other key partners around the world, we aim to enhance cellular connectivity globally, essentially eliminating dead zones and empowering remote areas with space-based cellular broadband connectivity.”

“The FCC grant paves the way for commercial space-based broadband services in the United States,” said Vikram Raval, Head of Global Regulatory Affairs. “By approving the launch of our first five BlueBirds, the largest-ever commercial communications arrays to be deployed in low Earth orbit, the FCC has taken a significant step forward for both AST SpaceMobile and U.S. leadership in space. As a U.S. company, we are committed to building our constellation and fostering regulatory relationships domestically and across the globe to provide this vital space-based infrastructure to the United States and across the world.”

AST SpaceMobile has successfully completed the manufacturing, assembly, and environmental testing its first five commercial satellites, called BlueBirds, and are now ready for shipment to Cape Canaveral during the first week of August, with a 7-day launch window in September.

During 2024, AST SpaceMobile has secured additional strategic investment from AT&T, Verizon, Google and Vodafone, as well as a new contract award with the United States Government through a prime contractor. The company has agreements with more than 45 mobile network operators globally, which have over 2.8 billion existing subscribers total, including Vodafone Group, AT&T, Verizon, Rakuten Mobile, Bell Canada, Orange, Telefonica, TIM, Saudi Telecom Company, Zain KSA, Etisalat, Indosat Ooredoo Hutchison, Telkomsel, Smart Communications, Globe Telecom, Millicom, Smartfren, Telecom Argentina, MTN, Telstra, Africell, Liberty Latin America and others. AT&T, Verizon, Vodafone, Google, Rakuten, American Tower, and Bell Canada are also existing investors in AST SpaceMobile.

About AST SpaceMobile

AST SpaceMobile is building the first and only global cellular broadband network in space to operate directly with standard, unmodified mobile devices based on our extensive IP and patent portfolio, and designed for both commercial and government applications. Our engineers and space scientists are on a mission to eliminate the connectivity gaps faced by today’s five billion mobile subscribers and finally bring broadband to the billions who remain unconnected. For more information, follow AST SpaceMobile on YouTube, X (Formerly Twitter), LinkedIn and Facebook. Watch this video for an overview of the SpaceMobile mission.

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 could 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 SpaceMobile’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 Securities and Exchange Commission (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 in 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/20240805857810/en/

Investors:

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 the FCC approval for AST SpaceMobile (ASTS)?

The FCC approval allows AST SpaceMobile to launch and operate its first five commercial BlueBird satellites, paving the way for space-based cellular broadband services in the United States and advancing the company's goal of providing nationwide coverage.

When are AST SpaceMobile's (ASTS) first BlueBird satellites scheduled for launch?

AST SpaceMobile's first five BlueBird satellites are scheduled for shipment to Cape Canaveral in the first week of August, with a 7-day launch window in September.

How many mobile network operators does AST SpaceMobile (ASTS) have agreements with?

AST SpaceMobile has agreements with more than 45 mobile network operators globally, which have over 2.8 billion existing subscribers in total.

What frequencies has the FCC authorized AST SpaceMobile (ASTS) to use for its satellite operations?

The FCC has authorized AST SpaceMobile to use V, S, and UHF frequencies to support gateway, feeder link, and telemetry, tracking, and control operations for its first five commercial BlueBird satellites.