ASTS Stock Slides After FCC Decision Signals Spectrum Turf War — Analyst Says SpaceX, Rivals Told To 'Stay In Their Lane'

• The FCC rejected requests to expand access to key satellite spectrum bands used for direct-to-smartphone connectivity.
• The order confirmed that existing operators will retain control of important satellite airwaves in the 1.5 GHz and 2 GHz ranges.
• Investor sentiment has also been cautious as SpaceX and Amazon’s Project Kuiper advance their satellite-to-smartphone connectivity plans.

Shares of AST SpaceMobile (ASTS) are on track to end the week in the red again after the Federal Communications Commission (FCC) blocked access to key satellite spectrum bands, as competition with SpaceX in the race to connect smartphones from space intensifies.

ASTS stock has declined 8% so far this week after ending Thursday 7% lower at $78.75.

FCC Rejects Requests To Open Satellite Spectrum

On Thursday, the FCC dismissed requests from several satellite operators, including AST SpaceMobile, SpaceX, and Iridium Communications, seeking broader access to portions of mobile-satellite service spectrum and kept existing spectrum rules unchanged to maintain clarity for companies.

“The market access applications and rulemaking petitions dismissed by the FCC today would have upended this structure and undermined the public interest,” the FCC said in a statement.

The order also confirmed that existing companies will keep control of key satellite airwaves in the 1.5 GHz and 2 GHz ranges, limiting efforts by operators, including AST SpaceMobile, to expand access to additional frequencies.

Earlier in the week, the FCC separately authorized additional satellites supporting AST SpaceMobile’s supplemental coverage-from-space network using spectrum leased from AT&T and Verizon across portions of the 700 MHz and 800 MHz bands.

Analyst Says FCC Ruling Limits AST Spectrum Plans

Satellite communications analyst Tim Farrar weighed in on the order on X and said that  the FCC ruling restricts AST SpaceMobile’s ability to expand into portions of the higher-frequency satellite spectrum, particularly around the 2 GHz range used for some direct-to-device services.

“AST is told it can't use 2GHz, which is very problematic for SatCo in the EU,” Farrar said, adding that the outcome could move the company’s near-term deployment priorities toward lower-band spectrum operations already supporting its U.S. rollout strategy with carrier partners.

“My takeaway is that AST will now have to spend longer focusing on low band operations if it wants to maintain FCC support,” Farrar said. He simplified the gist of the order and said: “Attempts to access Big LEO [low-earth orbit] and L-band are dismissed.”

Farrar noted that the ruling still preserves exclusivity for Globalstar across portions of the Big LEO spectrum, while maintaining regulatory backing for SpaceX’s Starlink platform in AWS-4 spectrum globally. The analyst also noted the ruling keeps unresolved questions involving Ligado Networks and Viasat regarding how certain L-band satellite spectrum rights apply outside specific regions.

SpaceX, Amazon Add Pressure In Satellite Race

Investor sentiment has also been cautious on the back of rising competition across the satellite-to-smartphone connectivity market. On a recent earnings call, AT&T CEO John Stankey said multiple satellite constellations are expected to support the U.S. direct-to-device market over time rather than a single dominant provider.

“I fully expect that SpaceX will ultimately have a robust direct-to-device capability,” Stankey said, adding that Amazon’s Project Kuiper network is also expected to develop comparable functionality as part of a broader satellite ecosystem.

ASTS Turns Focus To Next BlueBird Launch 

Progress on AST SpaceMobile’s constellation rollout remains another near-term investor focus following the BlueBird-7 launch anomaly during New Glenn Mission-3.

While the spacecraft failed to reach its intended orbit, the company said production continues across its next generation of satellites, with BlueBird-8 through BlueBird-10 expected to be ready for shipment within about 30 days.

Michael P., executive vice president of government operations at AST SpaceMobile, said on LinkedIn that the next spacecraft are already nearing deployment readiness. “I just returned from our Midland factory complex today, and I can attest that these new satellites look awesome as we get ready to ship them shortly,” he said. 

The executive added that the company expects to return to Cape Canaveral soon for the launch of its next set of BlueBird satellites.

How Do Retail Traders Feel About ASTS?

On Stocktwits, retail sentiment for ASTS was ‘bullish’ amid ‘extremely high’ message volume.

One user expressed disappointment over ASTS’ stock price, saying “so we finally have the full FCC approval to expand to a $500B company, and we can't hold 80 bucks”

Another user said, “I love me some AST, but the only thing that’s gonna give this thing some strength is a launch schedule. A schedule of multiple launches. A roadmap of how they’re gonna hit that 45 (or whatever they’re actually planning on hitting).”

ASTS stock has surged over 250% over the past year.

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