According to TheFly, Berenberg analyst Michael Filatov believes SpaceX’s latest move could sharpen its strategic distinction with AST SpaceMobile.
- Berenberg maintained a ‘Buy’ rating on AST SpaceMobile following Grain Management’s agreement to sell its nationwide spectrum portfolio to SpaceX.
- According to Filatov, SpaceX’s decision to build out its own network could make AST SpaceMobile “more strategically relevant” rather than simply increasing competitive pressure.
- He cited SpaceX positioning itself as a mobile carrier rather than simply a satellite connectivity provider as the reason for his optimism around AST SpaceMobile.
Space Exploration Technologies Corp.’s (SPCX) latest push into mobile connectivity could be creating an unexpected opportunity for AST SpaceMobile Inc. (ASTS), analysts at Berenberg said.
The satellite-to-phone race is increasingly becoming a battle over not just technology, but who ultimately controls the customer relationship. According to TheFly, Berenberg analyst Michael Filatov believes SpaceX’s latest move could sharpen the strategic distinction between the two companies.
AST SpaceMobile shares fell more than 10% on Friday, declining 0.1% further during the after-hours trade. SpaceX shares gained more than 1% during the regular trading session, and rose 0.1% further in the after-hours trade.
SpaceX’s Mobile Ambitions Could Boost ASTS
Berenberg maintained a ‘Buy’ rating on AST SpaceMobile following Grain Management’s agreement to sell its nationwide spectrum portfolio to SpaceX, subject to Federal Communications Commission approval.
The deal involves up to 14 MHz of paired spectrum in the 800 MHz band, giving SpaceX access to low-band spectrum that it says will help close a key technical gap for its Starlink Mobile ambitions.
SpaceX described the move as a step toward building the world’s “most advanced” mobile network. The company said the low-band spectrum will complement its existing 2 GHz mid-band spectrum, with the new frequencies providing a coverage layer capable of improving connectivity through obstacles such as walls.
Critically, SpaceX said most existing mobile devices already support the band, potentially allowing Starlink Mobile to provide connectivity without requiring users to replace their phones.
SpaceX said its goal is to combine its satellite constellation with a terrestrial network into a single architecture that can provide connectivity “indoors, outdoors, in cellular dead zones, and everywhere in between.”
Berenberg sees that strategy as an important development for AST SpaceMobile.
ASTS Could Become The ‘Natural Satellite Partner’
According to Filatov, SpaceX’s decision to build out its own network could make AST SpaceMobile “more strategically relevant” rather than simply increasing competitive pressure. He cited SpaceX positioning itself as a mobile carrier rather than simply a satellite connectivity provider as the reason for his optimism around AST SpaceMobile.
That could leave ASTS with a potentially valuable position in the market, which is partnering with existing telecom operators rather than competing against them, the analyst said.
Filatov argues that AST SpaceMobile is currently the only device-to-device operator whose technology is designed to deliver broadband connectivity to existing smartphones while maintaining a carrier-partnership model.
The analyst therefore sees AST SpaceMobile as “the natural satellite partner for operators.”
SPCX Gets Another Boost From FCC
The spectrum deal wasn’t SpaceX’s only major mobile-network milestone this week.
The FCC also approved SpaceX’s Gen2 Starlink constellation application, authorizing the company to launch 15,000 satellites optimized for 2 GHz spectrum globally.
SpaceX said its V2 Starlink Mobile satellites will deliver more than 100 times the bandwidth of its current generation and provide high-speed connectivity directly to unmodified devices.
The FCC also authorized the full range of backhaul bands used by SpaceX’s V3 broadband satellites, allowing them to operate with Starlink’s existing gateway network.
SpaceX said the approvals will help advance its vision of keeping users connected “no matter where they are,” from dense cities to remote and rural areas.
What Retail Investors Think About ASTS Stock
Retail sentiment on Stocktwits around AST SpaceMobile trended in the ‘bullish’ territory at the time of writing.
ASTS stock is down 30% year-to-date, while SPCX stock is up 8%. The Vanguard Morningstar Total Stock Market ETF (VTI) is up 16% over the past 12 months, while the Vanguard Morningstar Small-Cap ETF (VB) is up 13%.
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