AST SpaceMobile: Revolutionizing the Mobile Satellite Services Industry (NASDAQ: ASTS)

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I highly recommend the AST SpaceMobile (NASDAQ:ASTS) ($6.63 as of this writing). The company aims to achieve substantial global mobile coverage after launching a total of 110 satellites by the end of 2024 and MIMO capability by 2025 after the launch of 168 satellites. Its global partners are building what they envision to be the first space-based cellular network. It’s called SpatiumMobile service, and it’s meant to give users who travel to and from areas without mobile service in global Earth coverage.

Company overview

ASTS is a major satellite company. They are working with international partners to build what they hope will be the first cellular network in space. Users who enter or leave a region where land mobile services are available on land, at sea, or in the air rely on SpaceMobile Service to keep them connected wherever they go. From 2023, ASTS plans to regularly commercialize BB satellites through 2025. By the end of 2024, when the company has launched a total of 110 satellites, it plans to have a large amount of mobile coverage around the world. By the end of 2025, when it has deployed a total of 168 satellites, it plans to have MIMO capability.

Investments merits

SpaceMobile Service addresses a large market

With an estimated 5.3 billion mobile subscribers constantly streaming in and out of coverage, the global market opportunity for ASTS services exceeds $1.1 trillion. ASTS S-1 data shows that approximately 3.7 billion people do not have access to cellular broadband, and another 450 million live in areas where there is no connectivity or cell phones.

Current plans for a constellation of 168 low-Earth-orbiting satellites call for providing SpaceMobile services. The high-throughput Q/V-band links between the SpaceMobile constellation and the gateways will direct international mobile traffic to the gateways, where they are transmitted over the mobile networks of the respective national operators. [MNOs] core network cellular infrastructure. ASTS believes there is no need for any involuntary spectrum participation or additional mobile spectrum allocations. But their technology is designed to increase the value of mobile spectrum licensed to terrestrial MNOs with the approval of participating MNOs and the national regulator, without negatively impacting the experience of other users through the participation of the license in satellite-terrestrial coordination. The purpose of the SpaceMobil space service is to create the first global space-based mobile network that can be accessed by any 2G/3G/4G LTE/5G and IoT-enabled mobile phone that has not been modified or 2G/3G/. 4G LTE/5G and IoT-enabled device that can connect to the internet.

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Aug 22 Investor ppt

The mobile satellite industry continues to experience growth, increased awareness of the need for reliable mobile voice and data communications services and the lack of coverage of most of the Earth’s surface by terrestrial terrestrial systems. ASTS believes that only satellite providers can offer global coverage.

What’s better is that the satellites are designed to distribute the functional capabilities of conventional satellites through several small, independent operators, and patentable modules called Microns. Micron modules use a unique modular design and are mechanically deployed in space to create a solar panel for energy storage and a radio communication antenna. Even if some microns fail in the area, the SpaceMobile Service is still expected to be able to continue operations.

A friendly go-to-market strategy that maximizes profitability

ASTS has formed partnerships with companies such as Vodafone, Rakuten USA, American Tower, and others that provide innovative technologies and products, highly skilled personnel, or potential end-user clients who complete their project. The ASTS business model with MNOs is designed so that the MNO can increase and extend coverage by using its spectrum resources without building towers or other infrastructure, which is not costly or difficult. This could allow it to sell the SpaceMobile Service to end-user customers of MNOs without any direct contract with ASTS.

The SpaceMobile service is designed to provide global broadband internet connectivity under the business model of community revenue agreements with MNOs. Through these agreements, ASTS will gain access to their existing customers, who will be the ultimate end users of the SpaceMobile service. ASTS has entered into more than 20 preliminary agreements and understandings with MNOs, which collectively cover approximately 1.8 billion mobile signals. ASTS will provide the service at a different price than the current terrestrial environment.

The industry has many barriers to entry

Mobile satellite services are very competitive at large. However, it has significant barriers to entry, including the cost and difficulty associated with developing, building, and deploying a satellite network. Obtaining the necessary permits, building the satellite constellation, and launching it into space all took a lot of time.

In my opinion, regulation is a formidable barrier to entry. New players will have to pass multiple regulatory hurdles before they can even begin testing their products. This is incumbent upon ASTS to benefit greatly through experience and time to market. Below are the regulatory hurdles that a new player should consider.

ASTS must comply with laws and regulations, and often be approved by national and local authorities in their duties. As the company expands its service to further regions and regions, it will be subject to more government approvals and regulations. As ASTS continues to trade, it will provide more services that rely on the use of the radio-frequency spectrum, and the provision of such services is highly regulated.

Appreciation

Target price

The model suggests a significant uptick from what this stock is currently priced at, which at first glance might seem counterintuitive to the reader. Given the huge leap of faith that an investor has to believe in the management’s leadership, the valuation gap is huge. This is similar to an equity investment where the results can only be seen far in the future, which also means that there is a higher risk of failure compared to investing in Microsoft (MSFT) today.

However, they think that ASTS will meet the management’s rule and that the business is growing at 2% during the due period for the market to mature. He can expect a distinguished face.

Appreciation

Image created by the author using data from ASTS files and own assessments

government administration

Aug 22 Investors presentation

Danger

The industry is rich in competitors and innovations

SpaceMobile’s service could be rendered obsolete or less competitive by satisfying the customer’s better demand or by introducing conflicting standards. The satellite communications industry is subject to rapid advances and innovations in technology. We can face competition from companies using new technologies and satellite systems.

Growth is heavily dependent on third parties

ASTS intends to partner with MNOs and will therefore rely on them to market and sell its products and services to end users. Such commercial partners will operate independently, exposing ASTS to significant risks. Because of this, most of the ASTS revenue from which ASTS sellers do well.

The danger of execution

ASTS and its supplies rely on complex systems and components for the operation and assembly of ASTS satellites, which carries the highest risk and uncertainty in terms of operations and costs. When these parts break unexpectedly, they require maintenance and replacement parts that are not always easy to find.

conclusion

To conclude, I believe that the upside for ASTS is much stronger than today if the government administration can reach FY30. The global market opportunity of ASTS services is more than $1.1 trillion, which represents approximately 5.3 billion mobile subscribers who are constantly moving and out of coverage. SpaceMobile will use a constellation of high-throughput Q/V-band connections to send mobile traffic from all over the world to the gateways. That’s the author’s advantage.

About Franklin Cheatham

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