T-Mobile (TMUS) asks FCC to investigate AST Space Mobile's satellites

T-Mobile (TMUS) sent a letter last week to the Federal Communications Commission (FCC) asking the agency to "take no action" on AST Space Mobile's (ASTS) application seeking government approval to provide Supplemental Coverage from Space Services (SCS).

According to the wireless network operator, AST Space Mobile "has failed to demonstrate that its proposed SCS operations will satisfy the Commission’s stated goal to minimize the risk of interference from SCS services to existing terrestrial networks."

The SCS application is seeking approval from the FCC to use 700 MHZ and 800 MHZ band spectrum in space. T-Mobile alleges that "vital information about where AST’s satellite beams will reach – and, therefore, how those signals will impact existing terrestrial licensees – remains missing" from AST's application.

"Without additional information from or further clarification by AST about its operations, T-Mobile and others cannot determine whether AST’s proposed SCS operations will cause harmful interference – a central consideration in the Commission’s authorization of SCS," the company said.

T-Mobile is calling on the FCC to require that AST submit maps disclosing where its signals will reach in the US, including over traditional cellular networks.

“Accordingly, AST must provide maps that show the overlay of its satellite beams on all geographic market areas, for all relevant elevation angles, including license areas to which it will have access to terrestrial spectrum, and how its satellites will be capable of confining SCS service to those licensed areas,” T-Mobile said.

AST has not yet responded to T-Mobile's letter.

Competition heats up to dominate space-based broadband

Both AST and SpaceX are racing 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.

SpaceX's cellular Starlink launched through T-Mobile in July. Starlink recently said in a post on X that it now has more than eight million customers across more than 150 countries and territories.

AST has faced increased pressure from Starlink, which has been buying up spectrum licenses from EchoStar.

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.

But AST has also been facing pressure from Wall Street, having been downgraded twice over the past month. Central to analyst's concerns are delays in launching its service that's causing it to fall behind Starlink, as well as questions about its unproven technology.

However, the company announced on Friday that its BlueBird 6 satellite is finally scheduled to launch on December 15th from the Satish Dhawan Space Center in India. AST said in a press release that the BlueBird 6 will feature the largest commercial phased array in low Earth orbit at nearly 2,400 square feet.

AST's stock is up 143.5% for the year.