10 Jun AST SpaceMobile: Conquering New Frontiers in Communication!
AST SpaceMobile, Inc. (NASDAQ: ASTS) is aiming to transform connectivity by building the first and only space-based cellular broadband network, which can be accessed by a smartphone. The Company is developing SpaceMobile, a network that can provide 4G/5G speeds anywhere, be it land, sea or in flight. The technology promises unmatched connectivity and easy seamless shifting from land networks to a space network, even in the remotest places or even in times of natural disasters, without the need for any special hardware or equipment.
The Company seeks to provide connectivity to over 1 billion people who do not have access to conventional wireless networks. The technology lends itself to various critical situations including emergency and disaster management, response or rescue services and opens up access to education, healthcare and networking for those devoid of connectivity.
The service aims to eliminate cellular coverage gaps and dropped calls and deliver broadband data speeds with low-latency. The network connects directly to the mobile without any additional software or hardware requirement and a subscriber can easily switch between tower base connectivity and SpaceMobile at the click of a button.
AST SpaceMobile, Inc. (NASDAQ: ASTS)
Market Cap: $ 549.37M; Current Share Price: 10.62 USD
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Industry
The International Telecommunication Union estimates that there was a slowdown in the rolling out of mobile broadband in 2020. Nearly 85 percent of the global population would have access to a 4G network by the end of 2020, but there is a gradual slowing down in annual growth since 2017. Africa and CIS are lagging far behind in access with nearly 23 and 11 per cent of the population have no access to a mobile-broadband network.
The need for uninterrupted communication driven primarily by government, maritime communication, aviation, enterprise and residential sectors. The technology plays a crucial role in emergency situations such as natural disasters, search and rescue operations and disaster management. The growing demand for flight travel is contributing to the demand from the aviation sector seeking to provide internet access to travelers, besides offering in-flight shopping and intranet connectivity for operational use.
A report by Research and Markets expects forecasts that the Global Mobile Satellite Service (MSS) Market, which stood at USD 4.53 Billion in 2019 will reach USD 8.20 Billion by 2027.
Furthermore, according to a report by Fortune Business Insights, the global satellite communications market size is expected to reach USD 41.33 billion by 2026, growing at a CAGR of 7.73 percent, from USD 22.61 billion in 2018. The growing demand for Low Earth Orbit (LEO) and Medium Earth Orbit (MEO) satellites is driving the growth in the market.
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Company
The Company is collaborating with leading mobile network operators such as the Vodafone group, Rakuten and American Tower. The ambitious space-based mobile network is expected to be launched by the end of 2023. Vodafone will be integrating these services with its existing infrastructure such as Vodacom, Safaricom and Vodafone brands. Furthermore, the Company has signed commercial agreements with AT&T and memorandum of understanding with Telefonica, Indosat, tigo, Telstra, Telecom and Liberty Latin America. The agreements will help these companies offer additional value to existing subscribers and reduce churn by providing a differentiated service when compared to competitors.
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In April 2021, the Company announced the completion of a business combination with New Providence Acquisition Corp, a special purpose acquisition company (SPAC) and became a publicly traded company with a listing on NASDAQ. Following the closure of the deal the Company received nearly $462 million in gross proceeds, including $230 million from a private placement. The funds will help the Company prepare for the phase 1 of its commercial launch which aims to provide coverage to approximately 1.6 billion people in 49 countries in the equatorial region.
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AST is targeting a potential customer base of more than 5 billion customers across the globe, which presents a $1 trillion opportunity and intends to launch 20 satellites in the north and south of the equator, which will provide coverage to even the remotest areas that do not have access to conventional networks currently.
The Company is working with SAFRAN, a tier-1 aircraft engine, rocket engine, aerospace-component supplier on a “work-for-hire” agreement and has agreements with NEC, SAFRAN, dialog and nano avionics for building the launch satellites. The Company is seeking to team up with GK Launch Services, Spacex, Ariane group and PSLV as potential launch partners.
The SpaceMobile network will be rolled out in 4 phases, with the initial phase 1 expected to roll out 20 satellites in the equatorial constellation, followed by phase 2 that will have 45 satellite launches covering North America, Europe and Asia. Phase 3 will launch 45 satellites offering full global coverage and Phase 4 will launch 58 satellites aiming to achieve Full global MIMO coverage with faster data rates.
Key Takeaways
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References
https://investors.ast-science.com/static-files/1e57f690-0ba5-4ede-9056-01a549aa3246
https://www.fortunebusinessinsights.com/satellite-communication-satcom-market-102679
https://www.itu.int/en/ITU-D/Statistics/Documents/facts/FactsFigures2020.pdf
https://www.itu.int/en/ITU-D/Statistics/Documents/facts/FactsFigures2020.pdf
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