ASTS Stock Rises Overnight: Partner AT&T Questions SpaceX’s Plan To Disrupt Wireless Carriers

• Stankey defended fiber’s advantages as AT&T announced a deal worth more than $3 billion with Corning.
• AST’s BlueBird satellites connect ordinary smartphones through carrier partnerships, including AT&T and Verizon.
• AST reaffirmed revenue guidance of $150 million to $200 million and reported a $1.3 billion backlog as it prepared for beta service.

Shares of AST SpaceMobile (ASTS) rose 0.4% overnight heading into Wednesday as partner AT&T’s CEO John Stankey questioned SpaceX’s strategy to compete with wireless carriers, citing cost and permission hurdles for its proposed rooftop cellular network.

ASTS stock fell 3% to $59.40 on Tuesday but remains up 0.5% this month, putting it on track for its best monthly performance since May. 

AT&T CEO Flags Cost And Consent Hurdles For SpaceX

Stankey told Axios on Tuesday that SpaceX’s approach was “not a viable strategy,” challenging plans to place small cellular base stations alongside Starlink dishes at homes and businesses.  “It would cost as much to do that as it would to build a macro network to be able to handle those capabilities,” he said, referring to a conventional cellular network.

Stankey also questioned whether those installations could transmit cellular signals without property owners’ consent. “You can’t radiate cellular signals from somebody’s house without their permission, unless somebody changes the law on that.”

The proposal would combine satellite connections with local cellular equipment to broaden coverage, including where satellite signals struggle to reach users.

Stankey also defended AT&T’s investment in fiber for home and business internet. “Satellite, at its best — if everything happens right over the next 10 years — is still not going to beat fiber,” he said.

The comments come amid AT&T’s announcement of a multiyear deal worth more than $3 billion to purchase fiber and cable from Corning. The home-broadband argument concerns a different service from AST’s direct-to-phone network, which is designed to fill mobile coverage gaps. Stankey has previously called satellite connectivity as complementary to terrestrial networks, particularly for locations beyond their reach. 

Why AT&T’s Position Matters For ASTS

AST SpaceMobile’s approach is based on working with mobile carriers. Its BlueBird satellites can connect directly to standard smartphones using carriers’ licensed cellular frequencies, without requiring a rooftop dish or specialized handset.

AT&T and Verizon are among its U.S. partners. On AT&T’s July earnings call, Stankey referenced “the AST offering” as part of plans to address coverage gaps heading into 2027. AST has called its strategy “partner-first.” In August, it reported partnerships with more than 60 mobile network operators collectively covering over 3 billion subscribers. 

SpaceX Expands Starlink As Wireless Competition Heats Up

The debate comes as SpaceX expands both its satellite capacity and its wireless plans. Its proposed mobile strategy includes small ground stations connected to Starlink dishes, alongside satellite connectivity and spectrum transactions with EchoStar. 

On Monday, Starship Flight 14 reached orbit and deployed 26 operational Starlink V3 satellites. SpaceX says each satellite adds about one terabit per second of capacity, with the batch delivering about 10 times the capacity added by a Falcon 9 launch carrying V2 Mini satellites. 

Deepwater Asset Management’s Gene Munster highlighted the milestone and three launches scheduled for Thursday, saying SpaceX was “just scratching the surface.” He projected 2,200 annual launches by 2030 and said the stock could more than double if that pace is achieved.

AST Prepares For Beta Service 

AST’s August update reported 13 spacecraft in orbit, with additional BlueBird satellites in production and preparations for beta service with selected partners in 2026.

The company reaffirmed full-year revenue guidance of $150 million-$200 million after reporting second-quarter revenue of $31.5 million. Its contracted revenue backlog hit about $1.3 billion across commercial partners and U.S. government awards.

How Do Retail Traders Feel About ASTS?

On Stocktwits, retail sentiment for ASTS improved to ‘neutral’ from ‘bearish’ levels a day ago amid a 28% jump in 24-hour message volume.

One user said, “$ASTS I wouldn’t honestly mind a buyout in the $100-120 range. I was worried a bit about the recent price action, but the recent Instagram ad by AT&T is a very bullish sign for me. Proves the point that big boys believe in the technology and there is honestly no alternative.”

Another user said, “$ASTS Wait. What if SpaceX buys a 10% or 15% stake in ASTS knowing that their D2C tech is inferior to that of ASTS’s.”

ASTS stock has declined 18% year-to-date.

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