AST SpaceMobile gains U.S.-Japan backing and completes Telus network test
AST SpaceMobile gained support after a U.S.-Japan joint statement cited its Rakuten partnership for low-Earth-orbit satellite infrastructure. Separately, Telus and AST SpaceMobile completed a first test linking Telus's wireless network with AST SpaceMobile's satellite network for data, voice and texts on standard smartphones. The developments lifted AST SpaceMobile shares during Oct. 6 trading, although reported gains varied by publication time.
Why it matters
The Telus test advances a potential commercial distribution route for AST SpaceMobile's direct-to-device service, which Telus expects to offer within the next year. The Japanese opportunity remains conditional on satellite deployment, as AST SpaceMobile has not provided a launch timetable.
Key facts
- 1The U.S. and Japanese governments welcomed cooperation between Rakuten Group and AST SpaceMobile on low-Earth-orbit satellite infrastructure in a joint statement. 247wallst.com
- 2Telus and AST SpaceMobile completed their first test connecting the Telus wireless network to AST SpaceMobile's space-based network on October 5. 247wallst.com
- 3The test included broadband data, voice calls and text messages between satellites and eligible smartphones. 247wallst.com
- 4Telus expects to make the service available to customers within the next year without requiring special equipment. 247wallst.com
- 5Japan's communications ministry preliminarily selected the Rakuten-AST joint venture for the J-LEO initiative, with a potential value of up to approximately $1 billion. benzinga.com
- 6William Blair retained its Market Perform rating while reducing its 2027 revenue estimate to $459 million from $752 million, citing launch delays and a slower BlueBird II rollout. investing.com
Open questions
- The Rakuten-AST joint venture's J-LEO selection is preliminary, and the potential government funding has not been finalized.
- AST SpaceMobile has not set a launch schedule, leaving the timing of wider commercial service uncertain.
- Reported AST SpaceMobile share-price gains differed across publications because they reflected different points during trading.
Summary written by AlphAI from 8 of 8 sources. Not investment advice. Figures are as stated by the linked sources.