ASTS bounces as Europe's four biggest carriers explore a joint satellite-spectrum bid

AST SpaceMobile (ASTS) got some relief on Monday. The shares closed up about 3% at $41.87 on October 19 (Yahoo Finance), after Europe's four largest mobile operators said they will explore a joint bid for satellite spectrum. The stock is still down about 29% so far in October (Yahoo Finance), after hitting a 52-week low last week.

What was signed

Deutsche Telekom, Orange, Telefónica and Vodafone signed a Letter of Intent to explore a potential joint bid for the future allocation of Mobile Satellite Services (MSS) spectrum in Europe. According to Deutsche Telekom's announcement, the four operators plan to:

• build key ground-network infrastructure and coordination and monitoring functions in Europe;
• give all mobile operators "open and non-discriminatory access" to direct-to-device (D2D) services;
• do this without investing directly in a satellite constellation. That will come from "a satellite partner still to be selected".

AST SpaceMobile welcomed the move in its own release. It said its regional joint venture, Satellite Connect Europe, provides European-operated ground infrastructure linking its BlueBird satellites to carriers' core networks (24/7 Wall St).

What it is not

The letter is non-binding and exploratory. It covers only a potential spectrum bid, AST's release names no financial terms, and it is not a commercial agreement, so it adds no signed revenue (24/7 Wall St). The satellite partner has not been chosen, and AST, SpaceX's Starlink and European constellation plans could all compete for that role.

The counterweight: Viasat at the FCC

Shares slipped about 2% overnight into Tuesday. In a petition filed Monday, Viasat asked the FCC to deny the additional overseas spectrum authority AST has requested for its authorised 248-satellite system, calling the request "fatally flawed". Viasat cited its European Aviation Network in the 1980–1995 MHz band. AST says it will seek national approvals before operating outside the U.S., and that beam shaping and power controls would limit interference (Yahoo Finance).

What to watch

• Tonight (Oct. 20, 22:30 CEST): SpaceX's Q3 webcast. Any direct-to-cell update will be read across to ASTS (earnings week).
• Oct. 29: the FCC agenda includes a proposed 25 MHz auction in D2D-usable bands.
• The EU process: how and when the EU allocates future MSS spectrum, and which satellite partner the four operators pick.

Follow the ASTS quote page. Not financial advice.

Sources

• Deutsche Telekom: Four European operators sign LOI to explore a joint bid for MSS spectrum
• AST SpaceMobile (Business Wire): Advances space-based cellular broadband in Europe
• Yahoo Finance: ASTS slips overnight as Viasat urges FCC to reject overseas spectrum bid
• 24/7 Wall St: AST SpaceMobile rises 4% as Europe's largest carriers explore joint bid
• Price data: Yahoo Finance (delayed)