AST SpaceMobile shares rise on FCC special authority grant

Published 31/01/2025, 13:16
© Reuters.

Investing.com -- Shares of AST SpaceMobile (NASDAQ: ASTS) climbed 7% following the announcement that the Federal Communications Commission ( FCC (BME:FCC)) has granted the company Special Temporary Authority (STA) to test its service in the United States in partnership with AT&T (NYSE:T) and Verizon (NYSE:VZ).

The FCC approval marks a significant step for AST SpaceMobile, allowing the company to begin testing its BlueBird satellites’ capability to provide cellular broadband service directly to unmodified smartphones. This service is expected to support a range of applications, including voice, full data, and video, without requiring any special software or device modifications.

AST SpaceMobile’s STA authorization is a testament to the company’s progress towards its goal of delivering space-based cellular broadband connectivity. With the FCC’s endorsement, AST SpaceMobile is set to install five gateways in the United States, enhancing its commercial activity and testing service with off-the-shelf cellular handsets on the AT&T and Verizon networks.

The company’s orbiting Block 1 BlueBird satellites are designed to provide non-continuous cellular broadband service across the United States and select global markets. AST SpaceMobile is targeting nationwide coverage with over 5,600 coverage cells in the U.S. Its next-generation Block 2 BlueBirds, featuring larger communications arrays, aim to deliver significantly increased bandwidth capacity and support peak data transmission speeds of up to 120 Mbps.

In 2024, AST SpaceMobile secured additional strategic investments from major industry players, including AT&T, Verizon, Google (NASDAQ:GOOGL), and Vodafone (NASDAQ:VOD), and won new contract awards with the U.S. Government. The company has established agreements with over 45 mobile network operators worldwide, reaching approximately 2.8 billion subscribers. Notably, many of these operators and companies like Google and American Tower (NYSE:AMT) are also investors in AST SpaceMobile, indicating strong industry support for the company’s innovative approach to connectivity.

The FCC’s STA grant underscores the shared objectives between AST SpaceMobile and the Commission, highlighting the company’s potential contribution to bridging the digital divide, enhancing emergency communications, and promoting U.S. leadership in space economy and direct-to-device technology.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

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