ASTS Stock Slips Overnight As FCC Clears Amazon’s $11.5B Globalstar Deal — Touts ‘Even More Competition’

• The deal includes 25 megahertz of mobile-satellite spectrum key to Amazon’s satellite-to-phone plans.
• FCC Chairman Brendan Carr said the acquisition would bring “even more competition, coverage, and capacity.”
• AST holds authorization for up to 248 satellites and has partnerships with AT&T, Verizon and FirstNet.

Shares of AST SpaceMobile (ASTS) slipped over 1% in overnight trading late Tuesday as the Federal Communications Commission (FCC) cleared Amazon’s $11.5 billion Globalstar acquisition, pushing the tech giant’s satellite-to-phone ambitions forward and setting the stage for tougher competition.

ASTS stock jumped 6% on Tuesday to $41.96, but shares are still down 29% for the month. 

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Amazon’s Satellite Push Clears A Key Hurdle

The FCC’s Space Bureau approved the transaction on Tuesday, including the transfer of 25 megahertz of Globalstar’s internationally harmonized mobile-satellite spectrum.  “This will enhance Amazon’s offering of direct-to-device (D2D) services, which will mean even more competition, coverage, and capacity,” FCC Chairman Brendan Carr said on X.

The deal will pair Amazon Leo’s satellite-building capabilities, launch arrangements and ground infrastructure with Globalstar’s existing network and spectrum. The spectrum is key to Amazon’s satellite-to-phone ambitions. In its approval order, the FCC said Amazon has applied to operate a global direct-to-device system but would lack the mobile-satellite spectrum needed to run it without the acquisition.

Amazon plans to use Globalstar’s assets to expand capacity and bring more services to areas beyond cellular coverage. The FCC said the deal could help close coverage gaps, boost emergency communications and improve data services for businesses and industrial users. 

“By approving this deal, the FCC has empowered Amazon Leo to deliver fast, next-gen satellite broadband services, increase competition, and help communities stay connected all across the country,” Carr said in the announcement.

Where Amazon’s Plans Overlap With ASTS

The FCC’s review also highlights how the deal could strengthen a rival to AST SpaceMobile.

In its approval order, the agency cited arguments from Public Knowledge and New America’s Open Technology Institute that combining Amazon’s resources with Globalstar’s assets could create a stronger competitor to SpaceX and T-Mobile’s satellite offering, as well as AST’s partnership with AT&T. The order also notes AST’s ties with Verizon and FirstNet.

AST already has FCC authorization to deploy and operate up to 248 satellites, connecting directly to standard smartphones using 700 MHz and 800 MHz spectrum in coordination with AT&T, Verizon and FirstNet. Its commercial agreement with AT&T, announced in 2024, runs through 2030. AST also signed a definitive agreement with Verizon last year.

Amazon is targeting a similar opportunity: helping mobile carriers extend voice, text and data services beyond the reach of cellular towers. The company plans to begin deploying its next-generation satellite-to-device system in 2028.

Amazon’s Apple Link

The deal would bring Amazon an established Apple relationship, with Globalstar already supporting emergency messaging and location sharing on compatible iPhones and Apple Watches.

Amazon and Apple have agreed to maintain those services and develop future satellite features through Amazon Leo. Amazon also aims to expand beyond Globalstar’s current offerings to serve more carriers and device makers.

The acquisition is expected to close in 2027, subject to remaining conditions, including replacement-satellite milestones. Amazon’s separate application for its direct-to-device system remains pending. After closing, it could also use Globalstar’s U.S. market-access approval for the planned 48-satellite C-3 network.

Meanwhile, the FCC’s meeting on Thursday could advance a spectrum auction and proposals to open 500 megahertz of additional spectrum for uses including satellite-to-device services.

How Do Retail Traders Feel About ASTS?

On Stocktwits, retail sentiment for ASTS slipped to ‘bearish from ‘bullish’ levels a week ago amid ‘low’ message volume.

One bullish user said, “$ASTS im buying all the dips”

Another user said, “$ASTS The CEO needs to step down. There is a persistent failure to execute on strategic guidance, and the company's recent earnings results have been consistently disappointing. This level of performance is unacceptable.”

ASTS stock has declined 42% year-to-date.

For updates and corrections, email newsroom[at]stocktwits[dot]com.

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