AST SpaceMobile, Inc. (ASTS) Business Profile

What it does

AST SpaceMobile is building a satellite network intended to connect ordinary mobile phones when they are outside the reach of terrestrial cellular networks. Its planned SpaceMobile Service would use satellites in low Earth orbit and radio spectrum controlled by mobile network operators. The company is headquartered in Texas.

Rather than selling subscriptions directly to most users, AST intends to work with mobile operators that would offer the service to their existing customers. The service is designed to work with unmodified phones, without requiring a separate satellite handset or other equipment. Users could be prompted to connect when they leave terrestrial coverage or purchase a plan through their mobile provider.

The network would carry traffic between phones and BlueBird satellites, then link the satellites to ground gateways connected to operators’ networks. AST is developing those ground connections alongside its satellite constellation. It has sold gateway equipment, software and related services to mobile operators as they prepare their infrastructure.

AST also uses its satellite technology for government work, including communications and other applications. It has agreements with the U.S. government directly and through prime contractors. The company has conducted tests using its satellites, but SpaceMobile Service has not launched or generated revenue. AST plans an initial service that will not be continuous in selected markets before expanding coverage.

How it makes money

AST currently earns revenue from government agreements and from selling gateway equipment, software and related services to mobile network operators. Government revenue is recognized as the company completes obligations under agreements made directly with the U.S. government or indirectly through prime contractors. The work uses its initial BlueBird satellites.

In FY2025, product revenue was $44.4 million and service revenue was $26.5 million. AST has not launched SpaceMobile Service, so those amounts do not include revenue from that planned service.

For SpaceMobile, AST generally seeks revenue-sharing agreements with mobile operators. It expects operators to market and sell the satellite coverage to their own customers, rather than requiring those customers to open a separate account with AST. The company expects most of its revenue, once the service is available, to come from these offerings.

Possible offerings include a day pass for a customer who leaves terrestrial coverage, a monthly consumer or enterprise add-on, and a plan using SpaceMobile as the primary network in areas without cellular coverage. AST also identifies potential aeronautical, maritime, military and government uses. Monthly add-ons could provide recurring subscriptions, while a day pass would be purchased as needed. Final offerings and prices depend on agreement with each operator, and customer acceptance is uncertain.

Alongside the planned service, AST expects to continue selling gateway equipment and associated services as operators build ground infrastructure. It also intends to pursue further government agreements, either directly or through contractors.

Customers and how it sells

AST’s commercial channel is mobile network operators, which are expected to sell SpaceMobile coverage to their own subscribers. The company has partnerships with over 50 MNOs with nearly 3 billion subscribers globally; those subscribers are potential end users, not current SpaceMobile customers. AST also serves the U.S. government directly and through prime contractors.

The company has definitive commercial agreements with AT&T, Verizon, Vodafone and Saudi Telecom Company. Its AT&T and Verizon agreements cover the continental United States, excluding Alaska, and Hawaii. A jointly owned European satellite service business with Vodafone, SatCo, has an exclusive reseller agreement for Europe, the UK and certain other markets. AST also has an agreement to serve Vodafone users outside SatCo’s territory, and an agreement with Saudi Telecom Company for Saudi Arabia and regional markets.

AST has approximately 50 preliminary agreements and understandings with other mobile operators. It needs definitive commercial agreements to replace those arrangements before offering service in their jurisdictions. It also needs regulatory approvals in each jurisdiction where it would provide service.

The company is based in Texas and has engineering and development operations elsewhere in the United States, India and Scotland, as well as engineering, development and production centers in Spain and Israel. Its planned initial markets include the United States, Europe and Japan.

Suppliers and costs

AST designs its satellites and assembles, integrates and tests them primarily at U.S. facilities. It also uses domestic and international contract manufacturers and vendors for components, subsystems and electronics. Some components, subsystems and services come from a sole source or a limited group of suppliers; the company is qualifying additional suppliers to reduce that dependence.

AST owns the intellectual property and controls manufacturing, internally or through contractors, for approximately 95% of the subsystems used in its Block 2 BlueBird satellites. It has invested in facilities and equipment to expand production capacity and has agreements and orders for materials needed for much of its planned constellation. Multiple launch providers are under contract, although the excerpt does not name them.

Satellite design, production, testing, launch and ground infrastructure require capital. AST estimates average direct materials and launch costs of approximately $21.0 million to $23.0 million per satellite for a constellation of over 90 Block 2 satellites. The estimate excludes certain initial satellites and depends on factors including future launch terms, supply-chain diversification and cost reductions. AST says costs could be materially higher if those assumptions are not achieved.

Competitive position

AST competes in mobile satellite communications with providers offering direct-to-device, mobile and fixed communications. SpaceX’s Starlink is developing low Earth orbit satellite technology for the direct-to-device market. AST also identifies Inmarsat, Globalstar, Thuraya, Iridium Communications and Skylo as providers offering mobile and fixed communications options. It was reported on 27 October 2026 that AST also faces competition from Viasat.

Regional satellite operators and providers of private communications networks can offer alternatives in some markets. Terrestrial wireless and wireline networks are indirect competitors, especially where their coverage expands. AST says some competitors are more established or have substantially greater resources.

AST’s planned service is designed to connect unmodified phones using spectrum already used by mobile operators. Its portfolio contained approximately 3,850 patent and patent pending claims worldwide as of December 31, 2025, including approximately 1,900 granted or allowed claims. It also has commercial agreements with several mobile operators and controls manufacturing for much of its satellite design.

Our reading: The operator agreements could help AST reach subscribers, but many other relationships remain preliminary and SpaceMobile has not launched. Our reading: The technology and intellectual property may provide some protection, though enforcement and competitive advantage are not assured. Our reading: Manufacturing control could help AST manage supply and costs, but its reliance on some sole-source suppliers limits that advantage.

Growth opportunities

AST’s growth plans center on launching more BlueBird satellites, integrating its network with mobile operators and obtaining permission to operate in each market. The company plans to introduce limited, noncontinuous service first, then expand coverage and capacity as it deploys more satellites.

AST plans to achieve noncontinuous service in selected markets with a total of 25 BB satellites. It believes approximately 45 to 60 BB satellites could enable continuous coverage across key markets, including the United States, Europe and Japan. It plans for approximately 90 BB satellites to provide continuous service across all targeted markets, while noting that continuous coverage would not be available at all times in certain areas.

The company plans to launch approximately 45 to 60 Block 2 BB satellites by the end of 2026. Its first Block 2 satellite, BB6, was launched in December 2025 and deployed in February 2026. AST has completed its planned investment in capacity to assemble, integrate and test up to six Block 2 satellites per month and is working toward that production rate.

Additional growth avenues include selling ground gateway equipment, extending commercial agreements with mobile operators and pursuing government applications using the same satellite technology. AST also expects its custom chip, once introduced in Block 2 satellites, to improve throughput and reduce power needs and unit costs. Its launch and coverage plans remain subject to manufacturing, launch, regulatory and financing uncertainties.

Structural risks

• Development and deployment: SpaceMobile remains in development and may not be completed on time or at all. Satellites may fail to launch, deploy or operate successfully, and manufacturing or engineering performance may fall below expectations.
• Capital and costs: Building the network requires substantial spending. AST plans to raise additional capital, which may not be available on favorable terms or at all; satellite and launch costs may also exceed estimates.
• Regulation and spectrum: AST needs approvals for service in each jurisdiction and relies partly on agreements with third parties for spectrum. Regulatory delays, conditions or inability to secure spectrum on suitable terms could affect deployment.
• Commercial adoption: The company needs commercially viable operator agreements and customer acceptance. Its initial service is not expected to be continuous, and demand may be lower than anticipated.
• Suppliers and launches: Some components come from sole or limited sources, while launch timing depends on providers, vehicle readiness and available windows. Contractor or supplier delays could disrupt the deployment schedule.
• Control and dilution: A multi-class share structure concentrates voting power with the founder and chief executive. Future equity offerings, warrant exercises and note conversions may dilute Class A stockholders.

Leadership

AST’s multi-class share structure concentrates voting power with its founder, chairman and chief executive, limiting other investors’ influence over important transactions.

Bottom line

Our reading

AST is building a satellite communications business around mobile-operator distribution, while earning current revenue from equipment, services and government work. Our reading: Its commercial opportunity depends on turning operator agreements and tested technology into a functioning, approved service at scale. The capital needed for satellites and launches, along with competition and deployment uncertainty, leaves that transition consequential for the business.