ASTS Gains Traction in Satellite Connectivity Space: Will it Persist?

AST SpaceMobile ASTS is building the world’s first and only global cellular broadband network in space, accessible directly by standard smartphones (4G-LTE/5G devices) for commercial and government use, leveraging its extensive Intellectual Property and patent portfolio. The SpaceMobile Service is currently planned to be provided by a constellation of high-powered, large phased-array satellites in low Earth orbit using low-band and mid-band spectrums controlled by Mobile Network Operators in areas lacking terrestrial network coverage.

Satellite connectivity is gaining popularity worldwide for a multitude of reasons. Despite the rapid expansion of terrestrial network infrastructure worldwide, a large section of people, specifically in rural and remote areas, has remained outside of network coverage. Geographical obstacles, scattered population and various other factors make network infrastructure expansion in those areas unviable for network service providers.
 
ASTS’ space-based connectivity infrastructure can be a game changer in this scenario. The company recently entered into a strategic partnership with Vodafone Idea (Vi), a major network service provider in India, to bring satellite-based mobile connectivity directly to smartphones across India. With 1.1 billion mobile subscriber bases, India is one of the world’s largest and dynamic telecom markets. Under this partnership, AST SpaceMobile will deploy and manage the satellite constellation while Vi will manage the terrestrial network integration. Once operational, this will open up new possibilities in the domain of emergency response, disaster management, agriculture, remote learning, remote work and various other applications.

Per a report from Grand View Research, the global satellite communication market is projected to witness a compound annual growth rate of 10.2% from 2025 to 2030. ASTS is steadily ramping up satellite development and deployment to capitalize on this emerging market trend. The company has already enabled video and voice calls from space using unmodified smartphones in collaboration with AT&T, Verizon, Vodafone and Rakuten. These developments underscore ASTS’ growing prowess in satellite communication technology, which augurs well for long-term growth.

How are Competitors Faring?

AST SpaceMobile is facing competition from Viasat, Inc. VSAT and Iridium Communications Inc. IRDM in the satellite communication space. Iridium operates one of the largest commercial constellations with a mesh architecture of 66 operational Low-Earth Orbit satellites. It offers dedicated commercial global voice and data communications services to both businesses and governments in the United States as well as globally. Iridium has been making solid investments to boost its technology infrastructure. It aims to launch satellite services for Direct-to-Device and satellite-based personal communication devices.

Viasat is ramping up investments in the development of its revolutionary ViaSat-3 broadband communications platform, which will have nearly 10 times the bandwidth capacity of ViaSat-2. The ViaSat-3 platform will help to form a global broadband network with sufficient network capacity to allow better consumer choices with an affordable, high-quality, high-speed Internet and video streaming service. Viasat can become a credible challenger for ASTS in the satellite connectivity space in the Indian market. In late 2024, Viasat collaborated with BSNL, a telecommunication service provider in India, to successfully demonstrate direct-to-device satellite services.

ASTS’ Price Performance, Valuation and Estimates

Over the past year, shares of AST SpaceMobile have skyrocketed 295.2% compared with the industry’s growth of 36%.

Going by the price/sales ratio, the company’s shares currently trade at 71.23 forward sales, much higher than the industry. It carries a Value Score of F.
 

ASTS is currently witnessing a downtrend in estimate revisions. Earnings estimates for 2025 have moved down 5.32% to a loss of 99 cents over the past 60 days, while the same for 2026 has decreased 54.72% to a loss of 82 cents.

AST SpaceMobile stock currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

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This article originally published on Zacks Investment Research (zacks.com).

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