One is publicly traded. The other is a private company. As the space race for worldwide connectivity continues, we explore the similarities and/or differences between Starlink and ASTS technology

 

AST SpaceMobile (Ticker: ASTS) is a telecommunications company focused on creating the first space-based cellular broadband network accessible directly by standard mobile phones. Their goal is to eliminate coverage gaps worldwide by enabling smartphones to connect directly to satellites without the need for additional hardware or ground infrastructure.

Technology Overview

• Direct-to-Cell Connectivity: AST SpaceMobile aims to deploy a constellation of low Earth orbit (LEO) satellites that communicate directly with unmodified mobile phones using standard cellular frequencies.
• BlueWalker 3 Satellite: In September 2022, they launched the BlueWalker 3 test satellite. By April 2023, AST SpaceMobile announced successful two-way voice communication between the satellite and standard smartphones. In September 2023, they reported achieving download speeds exceeding 10 Mbps on 4G LTE directly to unmodified smartphones.

Comparison with Starlink

Starlink, a project by SpaceX, is designed to provide high-speed broadband internet globally through a network of LEO satellites. However, there are key differences between the two companies:

• User Equipment:

  • AST SpaceMobile: No additional equipment is needed; standard mobile phones can connect directly to their satellites.
  • Starlink: Requires a specialized user terminal (dish) and modem to access the internet service.

• Service Focus:

  • AST SpaceMobile: Aims to enhance mobile connectivity, particularly in remote or underserved areas, by integrating with existing mobile network operators.
  • Starlink: Focuses on providing broadband internet service to homes, businesses, and remote locations, functioning independently of traditional internet service providers.

• Technological Approach:

  • AST SpaceMobile: Faces challenges like ensuring sufficient signal strength and managing power requirements to connect directly with small mobile devices.
  • Starlink: Utilizes user terminals with larger antennas and more power to establish a reliable connection with satellites.

Does AST SpaceMobile's Technology Surpass Starlink's?

The question of whether AST SpaceMobile's technology surpasses Starlink's is nuanced, as they serve different purposes:

• Performance Metrics:

  • Starlink offers higher data speeds (currently ranging from 50 to 150 Mbps) suitable for broadband internet access, with relatively low latency for satellite communication.
  • AST SpaceMobile is still in the testing phase, with reported speeds over 10 Mbps, focusing on mobile connectivity rather than high-bandwidth internet service.

• Market Impact:

  • AST SpaceMobile could revolutionize mobile connectivity by filling coverage gaps without requiring new infrastructure on the ground.
  • Starlink is impactful in providing high-speed internet to areas lacking reliable broadband, but it requires users to have specific equipment.

• Technological Innovation:

  • AST SpaceMobile's direct-to-phone satellite communication is a significant technological advancement due to the complexity of connecting satellites directly with small, low-power devices.
  • Starlink's large-scale deployment of satellites and advancements in satellite manufacturing and launch capabilities are also notable innovations.

Conclusion

AST SpaceMobile and Starlink are pioneering different aspects of satellite communication:

• AST SpaceMobile is pushing the boundaries of mobile connectivity by enabling direct satellite communication with standard smartphones, which could dramatically extend mobile network coverage globally.
• Starlink is redefining satellite internet by providing high-speed broadband access to users worldwide, especially in areas where traditional internet services are unavailable or unreliable.

Rather than one technology surpassing the other, they are complementary in advancing global connectivity. 

AST SpaceMobile excels in enhancing mobile network reach without additional user equipment.

 Starlink provides robust broadband internet services requiring dedicated hardware.

(Discl: we are long $ASTS on Nasdaq)

AST SpaceMobile (ASTS) stock has surged approximately 800% in the past 100 days due to several significant developments and strategic agreements.

 

A key driver behind this massive increase is the company's partnership with AT&T. This agreement aims to create a space-based broadband network that will provide cellular connectivity directly to standard mobile phones, a groundbreaking achievement in the telecommunications sector. This collaboration has been in progress since 2018, but it was solidified recently with a definitive agreement extending through 2030​ (markets.businessinsider.com)​​ (AT&T Newsroom)​.

Several factors contributed to the stock's dramatic rise:

1. Successful Testing and Milestones: AST SpaceMobile has achieved several critical milestones, including the first voice, text, and video calls made via satellite using everyday smartphones. These accomplishments have demonstrated the feasibility and potential of their technology, boosting investor confidence​ (AT&T Newsroom)​.

2. Upcoming Satellite Launches: The company plans to launch its first five commercial satellites into low Earth orbit this summer. These satellites will enable the commercial service that has been anticipated and tested in previous phases​ (markets.businessinsider.com)​.

3. Increased Trading Volume: Following these announcements, there was a substantial increase in trading volume. For example, on the day the AT&T agreement was announced, trading volume exceeded 36 million shares, compared to an average of 3.2 million shares, reflecting heightened investor interest​ (markets.businessinsider.com)​​ (Barchart.com)​.

Long-Term Prospects: The long-term prospects for AST SpaceMobile appear promising but come with significant risks:

• Potential Market Leadership: If successful, AST SpaceMobile could become a leader in providing global cellular connectivity, addressing connectivity gaps in remote and underserved areas. This would position the company at the forefront of a potentially lucrative market​ (AT&T Newsroom)​.

• Strategic Partnerships: Continued collaborations with major telecommunications companies like AT&T enhance the company’s credibility and market reach, potentially leading to further commercial agreements and expansions​ (markets.businessinsider.com)​​ (AT&T Newsroom)​.

• High Risk: Despite the potential, AST SpaceMobile's business model involves substantial risks, including high capital expenditures, technological challenges, regulatory hurdles, and the need for further financing to scale operations. The success of their satellite launches and the ability to maintain and expand partnerships are critical for long-term sustainability​ (Barchart.com)​.

In summary, AST SpaceMobile's recent stock surge is driven by strategic partnerships, successful technological demonstrations, and upcoming satellite launches. While the company shows strong potential for growth and market disruption, it also faces significant risks that could impact its long-term success.