AST SpaceMobile, Inc. (NASDAQ: ASTS)

AST SpaceMobile is building the first and only global Cellular Broadband network in space that can be accessed directly by everyday smartphones using 2G 4G LTE and 5G technology. The company aims to provide cost effective high speed Cellular Broadband service to users who are outside terrestrial cellular coverage by deploying a constellation of high powered large phased array satellites in low Earth orbit. These satellites will use low band and mid band spectrum controlled by mobile network operators to deliver voice text data and video services without requiring users to purchase new equipment or subscribe directly to the company.

The company currently generates revenue from completion of performance obligations in agreements with the U. S. government either directly or through prime contractors using its initial Blue Walker 3 and Block 1 Blue Bird satellites. It also earns revenue from the sale of gateway equipment software and related services to mobile network operators. Although the SpaceMobile service has not been launched and therefore has not yet generated any revenue from end user subscriptions, the company expects to earn future income through revenue sharing arrangements with mobile network operators once the service becomes commercially available. The company has entered into a contract with the United States Space Development Agency through a prime contractor with total expected revenue of $43.0 million to provide certain testing services using its initial Blue Walker 3 and Block 1 Blue Bird satellites. It has an agreement directly with the United States SDA for the Europa Track 2 commercial solutions program with a total contract value of approximately $30.0 million. It holds an indefinite delivery indefinite quantity IDIQ contract award on the Scalable Homeland Innovative Enterprise Layered Defense SHIELD program enabling future task orders under the Missile Defense Agency framework.

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AST SpaceMobile positions itself as a pioneer in direct to cellular satellite broadband competing with low Earth orbit constellations such as SpaceX’s Starlink and traditional mobile satellite providers like Inmarsat Global Limited Globalstar Thuraya Telecommunications Co. Iridium Communications and Skylo. The company’s competitive advantages stem from its large addressable market of mobile users lacking coverage its partnerships with over fifty mobile network operators representing nearly three billion subscribers its extensive patent portfolio of approximately 3,850 patent and patent pending claims and its technology that delivers broadband directly to unmodified smartphones using existing mobile network spectrum. Additionally the company’s vertically integrated manufacturing approach and its dual use capability for commercial and government applications provide cost control and revenue diversification.

The company serves mobile network operators and government agencies. It has partnerships with more than fifty mobile network operators including AT&T Verizon Vodafone Saudi Telecom Company Rakuten Bell Canada and others that together represent nearly three billion subscribers worldwide. In addition the company has agreements with the U. S. government either directly or through prime contractors to provide testing services and support for non communication applications.