AST SpaceMobile (ASTS) - Business Overview

What ASTS Does

AST SpaceMobile is building the first and only global cellular broadband network in space designed to work directly with everyday smartphones (2G/4G-LTE/5G devices) without any modifications or special equipment. The company's SpaceMobile Service will provide high-speed cellular broadband to users outside terrestrial cellular coverage using a constellation of high-powered satellites in low Earth orbit (LEO).

How the Technology Works

• Direct-to-Device Connectivity: Large phased-array satellites communicate directly with standard, unmodified smartphones using low-band and mid-band spectrum licensed to Mobile Network Operators (MNOs)

• No Special Equipment Required: Users don't need new phones, apps, or antennas - the service works with existing devices

• Partnership Model: ASTS works with MNOs (like AT&T, Vodafone, Verizon) who offer the service to their customers via revenue-sharing agreements

• Massive Satellite Arrays: Block 2 satellites feature approximately 2,400 square feet communication arrays - the largest ever deployed in LEO for commercial use

• Custom Technology: Proprietary ASIC chip designed to deliver up to 120 Mbps peak data rates with 10,000 MHz processing bandwidth per satellite

Current Status & Milestones

Satellites in Orbit:

• BlueWalker 3 (BW3) test satellite launched September 2022 - successfully completed 5G voice calls and achieved 21+ Mbps download speeds to unmodified smartphones

• Five Block 1 BB satellites launched September 2024 - 10x higher throughput than BW3

• Successfully completed first video call from space with Vodafone in January 2025

• Completed voice/video tests with AT&T and Verizon in February 2025

Next Phase:

• Planning to launch approximately 60 Block 2 BB satellites during 2025-2026

• First Block 2 satellite expected to ship by end of April 2025

• 25 satellites total (5 Block 1 + 20 Block 2) will enable non-continuous service in select markets

• 45-60 satellites will enable continuous coverage in key markets (US, Europe, Japan)

• 90 satellites planned for full global continuous coverage

Commercial Partnerships

Definitive Agreements:

• AT&T: Commercial agreement through 2030 for continental US and Hawaii service

• Vodafone: Long-term agreement through 2034 for Vodafone home markets globally

• Verizon: Memorandum of Understanding with $65M in commercial prepayments

Strategic Partners:

• Google: Services agreement for Android device integration

• Rakuten: Exclusive network capabilities in Japan

• American Tower: Gateway infrastructure partnership

Target Market

• 5.8 billion mobile subscribers constantly moving in/out of coverage (GSMA data)

• 3.4 billion people with no cellular broadband coverage

• 350 million people with no connectivity or mobile cellular coverage

• Use cases: rural coverage gaps, maritime/aeronautical connectivity, emergency backup, government/military applications

Intellectual Property

• More than 3,500 patent and patent pending claims worldwide

• 45 granted US patents with 1,550 total patents granted or allowed globally

• 36 patent families covering innovations from space to Earth in direct-to-cell satellite ecosystem

Financial Profile (FY 2024)

• Market Cap: $33.9 billion (as of latest data)

• Revenue: $4.42M (pre-commercial, primarily equipment sales to partners)

• Net Loss: $300.08M (heavy R&D and infrastructure investment phase)

• R&D Expenses: $122.27M (27.67x revenue ratio - typical for pre-revenue space companies)

• Cash Position: Strong with 7.9x current ratio, $524.3M working capital

• Capital Intensity: $174M in capex for satellite manufacturing and testing facilities

Manufacturing & Facilities

• 194,000 sq ft satellite assembly, integration, and testing (AIT) facility in Texas

• Additional facilities in Spain, Israel, India, and Scotland

• Target capacity: 6 satellites per month by Q2 2025

• 95% vertical integration - owns IP and controls manufacturing for most subsystems

• 578 employees and consultants worldwide as of December 2024

AST SpaceMobile represents a groundbreaking approach to closing the global connectivity gap by bringing cellular broadband directly to billions of people currently underserved by terrestrial infrastructure. The company's massive satellite arrays and partnerships with major global carriers position it as the first mover in the direct-to-standard-device satellite market, differentiating it from competitors like SpaceX Starlink (which requires specialized equipment) and Globalstar (limited to low-data SOS services).

The company is currently in the critical transition phase from testing to commercial deployment, with the 2025-2026 launch campaign representing a make-or-break period. Success depends on executing the ambitious satellite manufacturing ramp-up, securing regulatory approvals across multiple countries, and converting preliminary MNO agreements into revenue-generating commercial relationships. The $34 billion market capitalization reflects investor optimism about the $5.8 billion addressable subscriber opportunity, though significant execution risk remains given the capital-intensive nature and regulatory complexity of global satellite communications.