Why Is AST SpaceMobile (ASTS) Stock in the Spotlight Today?


AST SpaceMobile (NASDAQ:ASTS) stock is advancing 5% in early trading after the company received permission from the FCC to test its satellite in the U.S. AST hopes to launch “the first and only space-based cellular broadband network designed to be accessible directly by standard mobile phones.”

An image of the Earth with a digital web connecting around it
Source: Blue Planet Studio/Shutterstock

Under the FCC license, AST will be able to carry out “space-to-ground testing” of its BlueWalker 3 test satellite in America. This comes ahead of its goal of launching the satellite over the summer. BlueWalker 3 is supposed to be able “to communicate directly with cell phones,” AST explained.

AST noted that it would look to obtain additional licenses from the FCC in the future.

What Happened With ASTS Stock?

Among AST’s largest partners are the large European wireless carrier Vodafone (NASDAQ:VOD) and American Tower (NYSE:AMT). The latter company owns over 200,000 wireless “communication sites” globally. AST hopes to eventually provide cellular service without any coverage gaps and enable the billions of people around the world without cellular broadband to obtain the service.

At the end of March, the company signed an agreement to conduct a test of BlueWalker 3 in Africa with France’s wireless carrier, Orange (NYSE:ORAN). Also in March, AST SpaceMobile unveiled a deal with Elon Musk’s satellite company, SpaceX.

Under the terms of that alliance, SpaceX will handle the initial launch of AST’s BlueBird satellite. The deal also sets the conditions under which SpaceX will carry out additional launches for AST.

On the date of publication, Larry Ramer did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.

Article printed from InvestorPlace Media, https://investorplace.com/2022/05/why-is-ast-spacemobile-asts-stock-in-the-spotlight-today/.

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