AST SpaceMobile, the direct-to-device satellite connectivity partner of AT&T and Verizon, successfully unfolded its first five BlueBird satellites in late October, six weeks ahead of schedule.
Impact: The launch milestone moves AST SpaceMobile closer to a rollout of commercial and U.S. government operations even as a burgeoning rivalry with SpaceX heats up, with an AST beta test possible in December. AST launched its first batch of five commercial satellites in September after the FCC granted final approvals a month earlier. Each satellite has a capacity of up to 40 MHz with peak data transmission speeds of up to 120 Mbps and boasts what CEO Abel Avellan called, “the largest commercial communications arrays ever launched in low-Earth orbit.” Those large phased array antennas will communicate with more than 5,600 coverage cells in the U.S. and enable direct connectivity with standard smartphones at cellular broadband speeds for what the company hopes will include voice, data, video, and government applications. In addition to its backing from AT&T and Verizon, AST has secured funding from Google, Vodafone, and others, as well as federal contracts. All told, the company has agreements with more than 45 mobile network operators around the globe.
As AST has moved closer to a commercial launch of its D2D connectivity, the potential for direct conflict with the T-Mobile-SpaceX D2D partnership has grown. Although T-Mobile and SpaceX are much closer to an official launch for their service with 240 satellites in orbit and a trial underway in hurricane-impacted areas, that hasn’t stopped SpaceX from sniping about AST to the FCC. In October, SpaceX accused AST and its investors of spreading misinformation about through a “scorched-Earth campaign” to hamstring competition. Specifically, SpaceX claimed AST influenced its investors, including a group of European telcos, to warn the FCC that they would sue for damages if the regulator moves to exclude SpaceX from established rules around radio emission limits that could cause interference with their respective networks. AST fired back with an FCC filing of its own in which it called SpaceX a bully trying to intimidate competitors, regulators, and cellular operators by using anticompetitive practice to get its way and deflect attention from its own technical shortcomings. AST also said it supported the providers’ “legitimate” concerns about interference.
An expanded Apple partnership with Globalstar probably won’t help cool things down in the satellite connectivity segment either, even though the two companies hope to rise above the fray. Apple first partnered with Globalstar in 2022 on an iPhone feature that enables users of newer iPhones to send messages to emergency services when they lack cellular or Wi-Fi coverage. But now the two appear to have bigger ambitions, disclosing in a recent regulatory filing that Apple will expand its partnership with Globalstar with a $1.1 billion cash investment, which includes $400 million to purchase a 20% stake in the satellite operator. The new deal likely paves the way for satellite support of data and voice services on its devices. Globalstar currently operates 31 satellites, with an additional 26 in the works and 17 scheduled launches planned in 2025; the infusion of funding from Apple could support an additional 40 to 80 satellites. With the big names in direct-to-device connectivity becoming more active and more entities working on satellite connectivity behind them, it’s a good bet both competition and rivalries in the segment will get even more heated in 2025.
