February 3, 2025
This is a pretty big hurdle for AST SpaceMobile to have cleared as it moves towards providing commercial mobile broadband services from space, as evidenced by its stock price uptick when it announced the regulator's decision late last week.
It's arguably too much of a stretch to suggest it's one in the eye for arch-rival Starlink, its myriad LEO direct-to-cell satellites and the commercial launch of a messaging service with T-Mobile US that is probably not too far away. But technology differences between the two mean that AST can start testing full services with its partners, the aforementioned US operators and T-Mobile's domestic rivals, while Starlink is in battle with the FCC over an out-of-band emission limit that at present prevents it from moving forward with voice and data services.
Amongst other things, the fact that AST SpaceMobile uses low-band wireless spectrum – 850 MHz with AT&T and Verizon – means it is not hampered by the FCC's emission limit and can therefore start testing messaging, voice and data services with its two US telco partners.
It's a temporary licence from the regulator, but it means the company can start using the five BlueBird satellites it launched into LEO in September to test out various mobile broadband services using unmodified AT&T and Verizon smartphones.
"Alongside integration efforts with partner networks we are installing five gateways in the United States, and we are now accelerating our path to commercial activity, starting with testing service with off-the-shelf cellular handsets on AT&T and Verizon networks," said Chris Ivory, Chief Commercial Officer of AST SpaceMobile, in a statement.
The company gave nothing away when it comes to the timing of that commercial launch though. It is unlikely to be imminent. Aside from all the testing that will be required first, the company has also made it clear that it needs to get more satellites into space; somewhere between 45 and 60, to ensure continuous coverage of the US.
Continuous coverage might not be a pre-requisite to a commercial launch, but it seems likely that operators would need something close to that. As it stands, the five BlueBirds offer short windows of time each day to allow for testing.
There are more satellites in the pipeline. AST plans to launch its next-generation BlueBirds, which come with up to 2,400 square-foot communications arrays and are designed to deliver up to 10 times the bandwidth capacity of the current BlueBird satellites in orbit. These will enable peak data transmission speeds of up to 120 Mbps, supporting voice, full data, and video applications, AST said. But again, we have no firm dates.
But the firm is certainly making progress. Its FCC approval came just days after UK partner – and major investor – Vodafone revealed it had made its first direct-to-cell video call using the BlueBird satellites and standard smartphones.
The firms plan to continue testing the service this spring with a view to introducing a commercial service in certain European markets later this year and into 2026.
The FCC's approval, albeit temporary, means the US might not be far behind.
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