ASTS Stock Jumps After-Hours: Major FCC Win Clears 223 Satellites Using AT&T, Verizon Spectrum

• The FCC win allows deployment of 223 low earth orbit satellites for supplemental coverage from space and direct-to-device connectivity across the U.S. and Hawaii.
• The order confirms spectrum-leasing arrangements with AT&T, Verizon and FirstNet across portions of the 700 MHz and 800 MHz bands.
• AST has already received an earlier $20 million prepaid service-revenue payment from Verizon.

Shares of AST SpaceMobile, Inc. (ASTS) jumped 4% in extended trading on Tuesday after the U.S. Federal Communications Commission (FCC) cleared 223 additional satellites for its direct-to-smartphone network using spectrum leased from AT&T and Verizon, marking a major regulatory win as investors weighed the recent BlueBird-7 launch setback

ASTS stock logged its third straight session of losses on Tuesday, sliding 1% to hit $80.01.

FCC Clears 223 AST Satellites

The FCC order authorizes AST SpaceMobile to deploy 223 additional low-Earth-orbit satellites as part of its space-based cellular broadband constellation for supplemental coverage from space and direct-to-device connectivity.

The approval also confirms spectrum leasing deals involving AT&T, Verizon and public-safety network FirstNet, allowing AST SpaceMobile to operate satellite-to-smartphone services across portions of the 700 MHz and 800 MHz cellular bands in the continental U.S. and Hawaii under certain conditions.

AST FCC Nod Boosts Verizon Deal Upside

The regulatory win also boosts AST SpaceMobile’s existing commercial deal with Verizon. In 2024, a unit of AST SpaceMobile and Verizon signed an agreement under which Verizon committed an initial $20 million prepaid service-revenue payment and a further $45 million prepayment tied in part to regulatory approvals for the company’s SpaceMobile service.

The company has already received the initial $20 million payment and recorded it as contract liabilities. The latest FCC approval increases the likelihood of triggering the remaining $45 million prepayment linked to commercialization milestones.

Engine Glitch Sends BlueBird-7 Off Orbit

The FCC catalyst comes days after AST SpaceMobile confirmed its BlueBird-7 satellite failed to reach its intended orbit following a launch anomaly during Blue Origin’s New Glenn-3 mission.

Blue Origin CEO Dave Limp said preliminary data pointed to insufficient thrust from one of the BE-3U engines during the rocket’s second upper-stage burn. The company is conducting an investigation under oversight from the Federal Aviation Administration.

AST SpaceMobile said the satellite separated successfully and powered on as expected but was placed at an altitude too low to sustain operations using onboard propulsion. The $23 million spacecraft is expected to be covered under insurance.

BlueBird-7 would have been the eighth satellite in the company’s next-generation Block-2 constellation. However, production continues through BlueBird-32, with BlueBird-8 through BlueBird-10 expected to be ready for shipment within about 30 days as the company maintains its target of 45 satellites in orbit this year. Each Block-2 satellite carries phased-array antennas spanning about 2,400 square feet and is designed to support 4G and 5G voice, data and video connectivity with peak speeds exceeding 120 Mbps.

How Do Retail Traders Feel About ASTS?

On Stocktwits, retail sentiment for ASTS has remained in the ‘extremely bullish’ zone over the past week, with the score rising to a new yearly high of 94/100 as of the latest reading, alongside ‘extremely high’ message volume.

One user said, “FCC approval may seem like a nominal step that's already priced in. But this unlocks a tranche of more risk averse institutional investors that through policy/strategy would not have been willing/able to buy in before.”

Another user pointed to the FCC approval and said, “THIS IS MAJOR RALLY NEWS!!!!”

ASTS stock has surged 285% over the past year. 

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