SpaceX turns up the heat on AST SpaceMobile
Back in September, SpaceX struck a $17 billion deal to buy spectrum licenses from EchoStar, enabling EchoStar's Boost Mobile subscribers to access SpaceX's next-gen Starlink Direct-to-Cell service, while helping Starlink deliver superior service to smartphones.
The deal put pressure on AST Space Mobile (ASTS) in the race to build a dominant space-based cellular broadband network, with the two companies looking to service the more than two billion people across the globe who lack access to high-speed internet services.
And now SpaceX is ramping up that pressure even more. EchoStar said on Thursday that it has amended its deal with SpaceX to sell the company another $2.6 billion worth of AW-3 licenses.
The transaction is being paid through SpaceX stock valued as of September 2025. The deal is pending regulatory approval.
"This transaction with SpaceX, in addition to our previously announced spectrum transactions and commercial agreements, will strengthen EchoStar's ability to develop new business opportunities and growth in value for our shareholders," EchoStar Capital CEO Hamid Akhavan said in a statement.
"The combination of AWS-3 uplink, AWS-4 and H-block spectrum from EchoStar with the rocket launch and satellite manufacturing capabilities from SpaceX accelerates the realization of powerful and economical direct-to-cell service offerings for consumers and enterprises worldwide, including our Boost Mobile customers," he added.
SpaceX has previously said that it is planning to launch 15,000 new and improved satellites for cellular service.
The company said in a filing earlier this year that the addition of the spectrum licenses would "close coverage gaps and ultimately eliminate mobile dead zones around the world.”
“Combining this exclusive spectrum with new state-of-the-art satellite technologies, SpaceX’s next generation Direct to Cell (‘D2C’) service will deliver unparalleled performance to standard, unmodified cell phones and Internet of Things devices," the company said.
Startlink said this week in a post on X that it now has more than eight million customers across more than 150 countries and territories.
Starlink is connecting more than 8M active customers with high-speed internet across more than 150 countries, territories, and many other markets.
undefined Starlink (@Starlink) November 5, 2025
Thank you to all our customers around the world! 🛰️🌎❤️ → https://t.co/mGLWDbAFHw pic.twitter.com/tfz96rdfMD
AST Space Mobile downgraded on execution delays
Meanwhile, AST Space Mobile still bills itself as “the first and only space-based cellular broadband network accessible directly by everyday smartphone,” even if that is not necessarily the case.
Scotiabank analyst Andres Coello downgraded AST Space Mobile in October, citing among other headwinds, the increased competition from Starlink.
He pointed out that the company “is running six months late in shipping the first BB2 to India,” while “Starlink is already monetizing the service.”
Because of AST SpaceMobile’s delays, Coello warned of “the possibility of customers overseas getting impatient and ditching ASTS for Starlink rather than waiting until 2027 or 2028.”
However, the company did announce a 10-year commercial deal with stc group last week to provide direct-to-device satellite mobile connectivity across Saudi Arabia and other key regional markets.
AST Space Mobile also inked a commercial deal last month with Verizon (VZ) to provide direct-to-cellular service when needed for Verizon customers starting in 2026. Terms of the deal were not disclosed.
ASTS shares have surged 209.4% this year, but the company got downgraded again last month.
Barclays analyst, led by Mathieu Robilliard, downgraded AST Space Mobile to Underweight from Overweight, while maintaining a $60 price target.
Robilliard said that Barclays assumes a 10% weighted average cost of capital (WACC) for the company, which “would reflect a much de-risked operating profile,” but then noted that AST Space Mobile “only has five satellites launched” at this stage.
“A second generation of satellites (45 to 60) is planned to be launched but there is always a risk of further delay,” he added. “Also these satellites are significantly larger than the previous generation and untested in space.”
AST Space Mobile’s stock dropped 7.3% on Thursday.SpaceX Turns Up the Heat on AST SpaceMobile