AST SpaceMobile Targets Initial Satellite Broadband Coverage in Five Countries by End of 2026

AST SpaceMobile (NASDAQ:ASTS) is preparing to introduce initial intermittent satellite-based cellular broadband coverage in five countries before the end of 2026, according to a research note from Bank of America.

The planned service would initially cover selected areas of the United States, Canada, Japan, the United Kingdom and Saudi Arabia, marking a further stage in the company’s development of a space-based mobile communications network.

Bank of America said AST SpaceMobile expects to begin commercial operations approximately three to six months after the start of beta testing.

The initial coverage is expected to be intermittent rather than continuous as the company continues expanding its satellite infrastructure and supporting ground network.

AST SpaceMobile has increased the number of gateways supporting its network to more than 60, compared with approximately 50 at the end of the second quarter.

The company has also progressed its satellite manufacturing programme, moving production from BlueBird 46 to BlueBird 50.

In the United States, AST SpaceMobile has enabled more than 3,000 coverage cells as part of its preparations for the initial service.

The company expects to increase that number to approximately 5,600 active coverage cells before the end of the year, supporting the planned introduction of intermittent broadband connectivity.

The network expansion forms part of AST SpaceMobile’s efforts to provide mobile broadband services through satellites connecting directly to compatible cellular devices.

Bank of America also discussed the competitive environment for satellite-based mobile communications, including developments involving SpaceX’s Starlink network.

According to the bank, a fully operational low Earth orbit wireless network from Starlink is likely to remain several years away.

The analysts indicated that AST SpaceMobile’s network performance and customer usage data could provide early information about demand for satellite-delivered mobile broadband services.

Bank of America referred to previously disclosed usage figures from T-Mobile’s Starlink-powered T-Satellite service.

T-Mobile had reported that T-Satellite accounted for approximately 0.0003% of total usage during peak periods and 0.0004% during normal operating periods.

However, the bank noted that comparisons between the two services are limited by differences in their available capabilities.

Starlink’s current T-Satellite offering is focused on functions including text messaging, photo sharing and location sharing, rather than the broader broadband connectivity planned by AST SpaceMobile.

Bank of America suggested that AST SpaceMobile’s proposed broadband service could provide additional information about how customers use satellite connectivity when a wider range of mobile data functions becomes available.

The company’s near-term plans therefore include expanding ground infrastructure, increasing active coverage cells and progressing satellite production ahead of the initial service introduction.

The anticipated launch before the end of 2026 would represent the beginning of intermittent coverage, with the timing of commercial availability dependent on the start and progress of beta testing.

Investors will be monitoring AST SpaceMobile’s deployment schedule, network performance and initial customer usage as the company advances towards commercial satellite broadband operations.

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