Texas-based satellite operator AST SpaceMobile has opted for a modified launch plan with SpaceX, investing an additional $5 million to deploy its first commercial direct-to-smartphone satellites early next year. The change involves adjusting the orbital inclination to 53 degrees, exceeding the initial plan. This alteration aims to enhance coverage, reaching up to 59 degrees latitude for both the northern and southern hemispheres.
The decision to broaden coverage aligns strategically with AST SpaceMobile’s prominent telecom partner, AT&T, which operates extensively in North America. The telecom giant has been actively supporting AST SpaceMobile in navigating regulatory requirements for satellite-based connectivity, particularly in areas beyond traditional cell tower reach.
Financial analyst Mike Crawford from B. Riley suggests that this last-minute adjustment indicates AST SpaceMobile’s proximity to finalizing a definitive commercial agreement with AT&T. The company anticipates a total expenditure of $115 million for the first five BlueBird satellites, covering manufacturing, launch, and associated costs.
AST SpaceMobile, known for building satellites in-house, plans to launch the fully funded BlueBirds on a Falcon 9 rocket in the first quarter of 2024. The move to larger satellites, 50% beyond the size of the initial batch, is under consideration to enhance performance, with CEO Abel Avellan indicating ongoing negotiations with strategic investors for additional funding.
The company envisions deploying around 90 BlueBird satellites in low Earth orbit (LEO) to realize its planned 5G broadband service, encompassing voice and data capabilities. Despite challenges such as manufacturing delays and cost overruns, AST SpaceMobile remains optimistic, reporting successful 5G tests with download rates of approximately 14 megabits per second using the BlueWalker 3 prototype.
As of September 30, the company holds $135.7 million in cash reserves, having raised funds through debt and stock sales. More than 40 major mobile network operators worldwide have signed agreements to utilize AST SpaceMobile’s constellation, representing a subscriber base of over two billion.
Competitor Lynk Global, operating smaller commercial satellites, has initiated services in select regions. Both companies are navigating regulatory processes to launch direct-to-smartphone services in the lucrative U.S. market. SpaceX, in collaboration with T-Mobile, has also entered this arena through its Starlink broadband constellation.
