Overview
- AT&T, Verizon and T‑Mobile announced a joint venture to use satellite direct‑to‑device technology and the Federal Communications Commission approved AST SpaceMobile for commercial U.S. service, a pair of developments that sent the stock up about 7% in premarket trading to roughly $113.34 on Tuesday.
- The FCC sign‑off removes a key regulatory barrier to AST’s plan to connect standard, unmodified mobile phones directly to low‑Earth‑orbit satellites for coverage in cellular dead zones.
- Roth Capital bumped its price target to $108 and cited roughly $3.5 billion in cash and funding for more than 100 satellites, while the broader analyst consensus remains cautious with an average target near $68.90.
- Operational execution is the immediate risk because AST previously missed its “satellites in orbit” target and the company’s next concrete test is the BlueBird 8–10 Falcon 9 launch planned for mid‑June.
- The move has amplified retail and ETF trading in space names and could materially change service for rural and remote users if AST converts approvals and carrier interest into timely satellite deployments and paid service.