Would-be satellite constellation operator AST SpaceMobile received FCC approval on August 2nd (after the market had closed) to operate its V-band frequencies from its planned five ‘Block 1’ BlueBird craft. The five satellites are due to arrive at SpaceX’s Florida launch site imminently in readiness for a September launch.

AST is planning a full internet global cellular broadband service working with its more than 40 telco partners around the world from a planned fleet of 168 satellites. It is considered a ‘super wholesaler’ of satellite capacity to these telcos and supplying cellular service into no coverage areas.

However, the August 2nd FCC letter delayed giving approval to AST’s full application, saying: “Full constellation and terrestrial mobile bands deferred for further consideration.” The delay could be measured in days or much longer, and AST is expected to make a statement during their quarterly financial update on August 14th and supply an impact position. The update will almost certainly include a more specific launch date that the current “September” position as well as timely information on the build of the hugely important and much more powerful ‘Block 2’ BlueBirds also slated for launch this coming winter.

Meanwhile, it is now clear that the share-price rise (other than August 2nd’s fall of 9.44 per cent) has been largely fuelled by institutional investors. August 2nd saw AST’s share price close out at $18.51 although prices rose in after-hours trading to $20. Most observers expect a further rise on August 5th.

Plenty of the investors are household names not least BlackRock (7.8 per cent) and State Street (4.41 per cent). But the biggest holder is Vanguard Group with 62 million shares and representing 13.28 per cent of AST’s issued capital. Vanguard is a large investment management business looking after an asset base of $9.3 trillion. It is the US’s largest provider of mutual funds. Along with BlackRock and State Street, Vanguard is one of the US’s ‘Big Three’ fund managers. It is encouraging that these three top AST’s shareholder lists.

For balance it is also fair to mention that the other players include the likes Morgan Stanley (1.75 per cent), Goldman Sachs (1.42 per cent), Deutsche Bank (1.58 per cent), Invesco (1.18 per cent).

However, founder and CEO Abel Avellan still holds onto 55.98 per cent of the company while Vodafone holds 7.19 per cent. AT&T and Verizon have contract positions with AST. Last week’s Scotiabank report on AST said that AT&T and Version between them have a massive 146.4 million monthly customers (and when pre-paid are taken into account this rises to 184 million clients). Scotiabank suggest that between 30-40 per cent of these clients would tap into AST. This would translate into between $2.56 billion – $5.25 billion in gross revenues for AST at a suggested $10-$15 per month.

John Stankey (AT&T’s CEO) has confirmed the prospects, if not the pricing structure which to others seems high. However, a monthly fee of $3-$4 might be more easily considered an affordable extra for users (“a cup of coffee”) for access to a total cellular access.

Other posts by Chris Forrester:

1. Rivada: No hard news on funding
2. United Airlines will dump geo-satellites
3. AST SpaceMobile launched and ready to connect
4. AT&T boss: “Satellite constellations are great”
5. Starlink Texas factory capable of 4.68m terminals annually
6. Bank: Starlink facing multiple challenges
7. India stalls again on satellite licensing
8. Bank raises AST SpaceMobile target
9. AST SpaceMobile reaches $10bn market cap

Categories: Blogs, Broadband, Inside Satellite, Mobile, Satellite

Tags: AST SpaceMobile, FCC, satellite