Key points
- AST expands its Brazil spectrum authorization to 30 MHz
- Four carriers agree to provide AST 700 MHz access
- Gateway costs and deployment dates remain undisclosed
AST SpaceMobile (ASTS) has secured a larger spectrum authorization in Brazil and agreements to use airwaves held by four regional carriers, the company said Monday. Together, they give AST more capacity for its planned satellite-to-phone service, though the carrier access is limited to their licensed areas and gives their networks priority.
Brazil's telecom regulator, Anatel, has authorized 30 MHz of S-band spectrum, compared with 20 MHz approved in May. AST also announced plans to invest in four ground facilities connecting its satellites to Brazilian mobile networks. It disclosed no costs or deployment dates for those facilities.
ASTS shares were little changed before the open, at $39.78 in premarket trading at 8:49 a.m. Eastern on October 26, compared with Friday's close of $39.79.
More spectrum, with limits on access
Anatel's board partially approved AST's application for a 248-satellite constellation on May 15. It granted two 10 MHz blocks of S-band spectrum, one in each direction, at 1,990 to 2,000 MHz and 2,180 to 2,190 MHz. AST received no priority over systems already authorized. Anatel cited strong demand for the band and said the allocation would favor competition.
Monday's announcement puts the authorization at two 15 MHz blocks, or 30 MHz in total. AST did not say when Anatel approved the increase.
The carrier agreements provide separate access to 700 MHz airwaves. AST can use that spectrum only within each carrier's licensed area and on a secondary basis, with the carriers' own networks taking priority.
AST says the additional spectrum will support voice calls, broadband data, and video streaming on standard smartphones. The potential market includes areas beyond existing mobile coverage: the company cites assessments showing that roughly half of Brazil's federal and state highways and two-thirds of its land available for farming lack 4G or 5G service.
Brisanet names three of the carriers
The release doesn't name the four regional carriers. On October 23, Brisanet said in a material fact notice that it, Unifique, and iez! Telecom had reached a commercial agreement with AST. Coverage of Brisanet's notice lists only those three.
Anatel has granted the three carriers test licenses, which still have to be published in Brazil's official gazette. Tests are set to start in November and run for two years in each carrier's service area. Brisanet said the transaction "is subject to certain conditions."
AST says service will expand as satellites and ground infrastructure are deployed, subject to authorizations, device compatibility, and commercial arrangements. Founder, chairman, and CEO Abel Avellan said the company is bringing together spectrum, operator relationships, and ground infrastructure to deliver "a third layer of connectivity across Brazil."
Amazon (AMZN) is planning a competing service and has asked the FCC for permission to launch 5,105 satellites that connect straight to phones, starting in 2028.
The Brisanet quote is translated from Portuguese.
