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FCC Clears AST SpaceMobile as Carriers Form Satellite Joint Venture

Regulatory approval plus a major carrier pact triggered a sharp stock rerating while June launches, carrier integration and satellite commissioning will determine if signed contracts convert to revenue

Overview

  • The Federal Communications Commission granted AST SpaceMobile authorization to offer commercial direct‑to‑device service in the United States, removing a key regulatory hurdle for the company.
  • A joint venture announced May 26 between AT&T, Verizon and T‑Mobile signaled carrier demand for satellite‑to‑phone coverage and helped drive a rapid rerating of AST’s shares.
  • Analysts and investors reacted with optimism: Roth Capital raised its price target and cited a funded plan for more than 100 satellites and about $3.5 billion in cash, while consensus sell‑side ratings remain cautious with an average target near $68.90.
  • The next operational test is the planned mid‑June Falcon 9 launch carrying BlueBird 8, 9 and 10, after which AST must commission satellites, finish gateway builds and integrate with carriers to begin revenue recognition.
  • AST has disclosed more than $1.2 billion in contracted carrier commitments and kept 2026 revenue guidance of $150 million to $200 million, but execution risks from past launch issues, gateway delays and tight commissioning timelines now determine whether that backlog turns into billed service.