AST SpaceMobile (ASTS) stocks slipped 1% on Thursday to close at $73.88, down 13% this week, as FCC Chairman Brendan Carr said SpaceX and Amazon are intensifying competition in the satellite-to-cell market. Carr attributed recent weakness in wireless carrier stocks to heightened telecom competition driven by spectrum sales, satellite offerings, and EchoStar's fading wireless-network ambitions. The FCC is reviewing Amazon's plan to acquire Globalstar, which Carr said could be "a real unlock" for its LEO network, while SpaceX already offers direct-to-cell coverage with T-Mobile and has reportedly held talks with Charter about launching a wireless phone business.
FCC Chair Comments on Satellite-to-Cell Competition
Carr said recent weakness in wireless carrier stocks shows that telecom competition is heating up. "The stock prices of the mobile wireless guys are getting hammered," Carr said, according to Bloomberg. He added that the old theory that the market needed a traditional fourth nationwide carrier is being challenged by new competitive pressure. "That whole theory that you have to sort of artificially create a fourth nationwide is something that we didn't agree with," Carr said, citing broader market competition. "I think that's bearing fruit again: speeds are up, prices dropping."
Carr pushed EchoStar last year to sell much of its spectrum to SpaceX and AT&T after saying that it was not moving fast enough to build a fourth national wireless carrier. The FCC approved the license transfers in May.
SpaceX and Amazon Expand Market Presence
Carr said he is "bullish" on SpaceX's ability to use its new airwaves to improve satellite-to-cell service. SpaceX already offers direct-to-cell coverage with T-Mobile, and it has reportedly held talks with Charter about launching a wireless phone business. Carr also said that the FCC is "open-minded" about deals that could allow SpaceX to offer wireless services more directly to consumers.
The FCC is reviewing Amazon's plan to acquire Globalstar as it builds out its LEO network. Carr said approval of the Globalstar deal and related spectrum rights would be "a real unlock" for Amazon, though it still needs to "continue to launch, continue to build."
AST SpaceMobile Advances BlueBird Satellite Rollout
AST SpaceMobile is building a BlueBird satellite constellation that can deliver 4G and 5G broadband directly to standard smartphones. It has partnerships with AT&T, Verizon, Vodafone, Rakuten, Google, Bell, Telus, STC Group and American Tower.
ASTS recently said BlueBird 11 is on its way from Midland to Cape Canaveral ahead of next month's launch. BlueBirds 12 and 13 are expected to follow. The company previously said BlueBirds 11, 12 and 13 are targeted for launch in the first half of August. They follow BlueBirds 8, 9 and 10, which launched June 17 and are now in orbit and operational. The next satellites will support voice, data and video service to standard smartphones and deliver nearly double the peak data speeds of ASTS' initial Block 1 BlueBirds, which recently hit 98.9 Mbps directly to standard smartphones.
ASTS stocks have risen 74% over the past year.
FAQ
Why did ASTS stocks fall this week?
ASTS stocks fell 13% this week after FCC Chairman Brendan Carr said SpaceX and Amazon are intensifying competition in the satellite-to-cell market, adding pressure to the wireless sector.
What did FCC Chair Brendan Carr say about SpaceX and Amazon?
Carr said he is "bullish" on SpaceX's ability to use its new airwaves to improve satellite-to-cell service. He also said approval of Amazon's Globalstar deal and related spectrum rights would be "a real unlock" for Amazon's LEO network.
When will AST SpaceMobile launch its next BlueBird satellites?
ASTS said BlueBirds 11, 12 and 13 are targeted for launch in the first half of August. BlueBird 11 is on its way to Cape Canaveral ahead of next month's launch.
