ASTS Slides 13% On SpaceX 800 MHz Deal, But CEO Says Carriers Already Hold 1,000 MHz For Its Satellites

ASTS CEO Abel Avellan said in a post on X that American operators hold about 1,000 MHz of low- and mid-band spectrum that can be tuned onto the AST network.

• Grain Management said on Thursday that SpaceX would acquire its entire U.S. 800 MHz portfolio, subject to Federal Communications Commission approval.
• SpaceX said the frequencies fill a gap in its plan to become a major U.S. mobile carrier, pairing long-range coverage with its existing mid-band capacity.
• Telecom shares, as well as ASTS, sold off on the news.

Shares of AST SpaceMobile (ASTS) sold off on Friday after SpaceX agreed to buy low-band spectrum the firm was also interested in, even as CEO Abel Avellan said U.S. carrier partners already hold about 1,000 MHz that can be tuned onto its satellites.

ASTS stock was down 13% at the time of writing. The stock had already fallen 6% on Thursday, to $56.93, after Grain Management said SpaceX would acquire its entire U.S. 800 MHz portfolio, subject to Federal Communications Commission approval. Neither Grain nor SpaceX divulged the deal terms.

The licenses, up to 14 MHz of paired low-band spectrum, came to Grain from T-Mobile in August. SpaceX said the frequencies fill a gap in its plan to become a major U.S. mobile carrier, pairing long-range coverage with its existing mid-band capacity. AT&T, Verizon, and T-Mobile shares also fell as investors weighed a new satellite rival.

ASTS CEO Cites Carrier Spectrum

Avellan answered on X without naming the deal. He wrote that American operators hold about 1,000 MHz of low- and mid-band spectrum that can be tuned onto the AST network, and that U.S. partners will have access to low- and mid-band airwaves “that no one can match.” Combined with 45 MHz of L-band spectrum AST controls, he said, users could see peak data rates of nearly 200 Mbps from the company’s satellites in orbit and in build. He called the result the strongest, most resilient, “AI ready” networks on the planet.

AST’s existing commercial arrangements with carriers such as AT&T and Verizon are unchanged by the Grain sale. The nearly 200 Mbps figure is a peak claim, not a typical speed.

Berenberg Keeps Buy, Calling AST The Carrier Partner

Berenberg analyst Michael Filatov kept a ‘Buy’ rating on ASTS after the announcement. His early take is that the sale makes AST’s technology and carrier-aligned approach more strategically relevant. The firm’s case is that SpaceX is positioning to compete with carriers by becoming one itself, leaving AST as the natural satellite partner for operators.

Berenberg argues AST is the only direct-to-device operator whose technology supports broadband to existing phones and whose model is to partner with carriers, and that SpaceX’s decision to build its own network raises AST’s strategic value.

How Did ASTS Retail Traders React?

On Stocktwits, retail sentiment around ASTS stock fell from 'bullish' to 'neutral' territory over the past 24 hours, while message volume stayed at 'high' levels.

A Stocktwits user said the deal raised their bullishness on ASTS. They now see telecom carriers partnering more with ASTS.

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Another termed the selloff a “good buying opportunity.”

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ASTS stock has dropped 32% year-to-date. 

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