AST SpaceMobile: Bullish Thesis on Satellite-Based Cellular Broadband

AST SpaceMobile, Inc. (ASTS) is pioneering space-based cellular broadband, deploying LEO satellites to connect directly with standard mobile phones. The company has launched five Block-1 satellites and plans to deploy 60 Block-2 satellites by 2026, each capable of servicing 1 million users. AST is pre-revenue but well-capitalized, with $873.8M in cash, minimal debt, and $0.5B in government funding. It maintains partnerships with over 50 carriers and holds U.S. defense contracts worth over $60M. While competition from SpaceX, Apple, and Amazon remains a risk, AST's technology advantage in supporting low-band frequencies gives it an edge in carrier integration.

The Indian Space Research Organisation (ISRO) is set to launch the Block 2 BlueBird communications satellite developed by the U.S.-based AST SpaceMobile in the coming months. This launch, scheduled to occur at the Satish Dhawan Space Centre in Sriharikota, Andhra Pradesh, is part of an ongoing Indo-US collaboration that follows the successful launch of the NASA ISRO Synthetic Aperture Radar Mission (NISAR) [1].

The BlueBird satellite, weighing approximately 6500 kg, is expected to arrive in India in September. ISRO chairman V. Narayanan expressed that the satellite was delayed by three months due to "developmental issues" [1]. The satellite will be launched aboard the LVM3, ISRO's most powerful launch vehicle, formerly known as the GSLV-Mk III [1].

AST SpaceMobile, the developer of the BlueBird satellite, has been making strides in the space-based cellular broadband sector. The company has launched five Block-1 satellites and plans to deploy 60 Block-2 satellites by 2026, each capable of servicing 1 million users [2]. AST is pre-revenue but well-capitalized, with $873.8M in cash, minimal debt, and $0.5B in government funding. It maintains partnerships with over 50 carriers and holds U.S. defense contracts worth over $60M [2].

While competition from SpaceX, Apple, and Amazon poses a risk, AST's technology advantage in supporting low-band frequencies gives it an edge in carrier integration. The company's strategic partnership with Vodafone Idea (Vi) in India is expected to bring satellite-based mobile connectivity directly to smartphones across the country [2].

ISRO's plans for the BlueBird satellite launch coincide with its ongoing mission to complete the construction of India's space station, Bharatiya Antariksh Station, by 2035. The space agency also aims to conduct the first of three uncrewed missions planned ahead of the Gaganyaan human spaceflight in December 2025 [1].

References:
[1] https://www.thehindu.com/sci-tech/science/after-nisar-isro-gearing-up-for-next-us-collaboration-with-bluebird-communications-satellite-launch/article69882412.ece
[2] https://www.nasdaq.com/articles/ast-spacemobile-post-q2-earnings-whats-cards