AST SpaceMobile (NASDAQ:ASTS) saw its shares rise 8% in pre-market trading following a Federal Communications Commission decision that grants the company commercial authority to deliver cellular broadband directly to standard mobile devices from space.
The FCC authorization allows AST SpaceMobile to deploy and operate a non-geostationary orbit (NGSO) constellation of as many as 248 satellites to provide supplemental coverage from space to unmodified mobile handsets across the United States. As part of the ruling, the company was granted permission to use premium low-band spectrum in the 700 MHz and 800 MHz bands in coordination with strategic partners Verizon, AT&T, and FirstNet.
Officials framed the approval as enabling the company’s broader global rollout as well. The grant preserves international operating rights related to feeder links and sub-1 GHz direct-to-device spectrum, with the company positioned to seek authorizations on a country-by-country basis.
AST SpaceMobile’s architecture is intended to operate across several frequency ranges. The system design includes V-band spectrum for gateway and feeder link operations while S-band and UHF spectrum are allocated for telemetry, tracking and command functions. The company plans to integrate the space-based network with terrestrial mobile network operator infrastructure to bolster resilience and to support communications for first responders, government agencies, enterprises and consumers using conventional smartphones.
Built to address both commercial and government use cases, AST SpaceMobile has pursued a highly vertically integrated manufacturing model. The company reports roughly 95% vertical integration and identifies a primary manufacturing hub in Texas that spans over 500,000 square feet. Globally, the firm employs in excess of 2,000 people.
The FCC action and the spectrum coordination provisions with large U.S. carriers are central to AST SpaceMobile’s U.S. market strategy, while the retained international rights set the framework for future country-level approvals required for broader global service.
Summary
The Federal Communications Commission has authorized AST SpaceMobile to operate a commercial NGSO constellation of up to 248 satellites and to use 700 MHz and 800 MHz low-band spectrum in coordination with Verizon, AT&T and FirstNet, enabling direct-to-device cellular broadband to unmodified smartphones across the U.S. The grant also preserves international operating rights for feeder links and sub-1 GHz spectrum to pursue country-by-country approvals.