AST SpaceMobile Gears Up for Consumer Satellite Service in Early 2026, Challenging SpaceX’s Starlink
AST SpaceMobile is accelerating its efforts to launch its consumer satellite service, setting an ambitious target of early 2026. This move places them in direct competition with SpaceX's cellular Starlink system, which is already in beta testing with T-Mobile customers. Will AST SpaceMobile be able to close the gap?
According to AST CEO Abel Avellan, the company aims to have a beta service running by the end of this year, followed by a fully operational consumer service in early 2026. The plan encompasses text, internet, data, and access to video conferencing applications. This announcement was made during a recent earnings call.
While SpaceX's Starlink is already offering service through T-Mobile's beta program (set to officially launch as "T-Satellite" in July at $10/month), AST SpaceMobile is still building its infrastructure. They've launched five "BlueBird" satellites and need 45 to 60 to ensure continuous service across the US and other key markets. They also need regulatory approval from the Federal Communications Commission (FCC) to commercially launch to customers through partners like AT&T and Verizon.
AST plans to conduct five satellite launches within the next six to nine months. The first launch, carrying a prototype next-generation BlueBird satellite, is scheduled for July with India's space agency and anticipate "orbital launches every one to two months on average during 2025 and 2026". The company is aiming to manufacture 40 second-generation BlueBird satellites this year, resulting in over 50 satellites in total. Although the specifics of each launch remain confidential, AST mentioned needing only 25 satellites to initiate "non-continuous" service, enabling revenue generation but with potential coverage gaps.
"The demand signals we are receiving is to get the service to market as fast as possible," explained AST President Scott Wisniewski. The company faces increased costs for its BlueBird satellites, reaching up to $23 million each due to raw material tariffs. AST SpaceMobile has a longer-term goal of operating 243 satellites by 2028.
AST SpaceMobile's business update also revealed an expected second half 2025 revenue opportunity of $50.0 million to $75.0 million. They plan to activate initial cellular broadband capabilities across the United States, Europe, and Japan with AT&T, Rakuten, Verizon, and Vodafone using premium low-band wireless spectrum. The company also secured a new contract with the Defense Innovation Unit (DIU) for up to $20.0 million. They concluded the first quarter with $874.5 million in cash.
The company also reported mixed financial results for Q1 2025. While the loss per share was better than expected (-$0.20 vs. -$0.26 forecast), revenue fell short of expectations at $7.18 million (vs. $10.94 million forecast). Despite this, analysts maintain a positive outlook with a consensus Strong Buy rating on the stock.
AST SpaceMobile is making significant strides towards its goal of providing global cellular broadband. While challenges remain, the company's aggressive launch schedule and strategic partnerships indicate a serious commitment to competing in the rapidly evolving satellite connectivity market. Will AST SpaceMobile be able to effectively compete with Starlink?
What are your thoughts on the future of satellite-based cellular connectivity? Share your opinions in the comments below!
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