AST SpaceMobile’s (ASTS) long-held dream of delivering satellite-to-phone network coverage is finally coming true.
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Forget margin or options. Here's how the pros trade ASTSThe satellite telecom company said Wednesday that it has secured regulatory approval to provide supplementary network coverage from space to ordinary mobile phones across the U.S., sending its stock soaring in morning trading.
AST SpaceMobile Gets FCC Nod
In August 2024, the U.S. Federal Communications Commission (FCC) granted the Texas-based company authority to operate a V-band non-geostationary orbit (NGSO) satellite system in low Earth orbit.
Now, the communications watchdog has expanded that license to permit AST SpaceMobile to operate 248 satellites in its constellations to deliver the direct-to-device service using premium low-band spectrum.
AST Is ‘Moving Closer to Commercial Service’
The expanded license follows a temporary authorization the FCC granted in February 2025 for AST SpaceMobile to test its satellite-based mobile broadband service. This came after the company launched its first five commercial BlueBird satellites in September 2024.
AST SpaceMobile has said it will work with U.S. telco giants Verizon (VZ) and AT&T (T), as well as FirstNet, the public-private network provider, to deliver the direct-to-device cellular broadband offering. Such a service will put the company in direct competition with aerospace company SpaceX’s Starlink satellite internet unit.
Abel Avellan, the satellite telecom company’s founder, chair, and chief executive, described the milestone as “an important step as we continue scaling our network and moving closer to commercial service.”
Listing the use cases for the service, AST SpaceMobile explained that such a network offering will help to support communications among first responders, government agencies, businesses, and consumers.
Is ASTS a Strong Buy?
On Wall Street, analysts have a Hold consensus rating on AST SpaceMobile’s shares. This is based on four Buys, five Holds, and two Sells issued by 11 analysts over the past three months.
However, the average ASTS price target of $89.58 suggests about 7% upside from current trading levels.
