Shares of satellite-based wireless company AST SpaceMobile (ASTS) dropped 14.6% on Friday, as investors digested a significant competitive blow from Elon Musk’s Space Exploration Technologies (SPCX).
SpaceX announced after market close Thursday that it had agreed to purchase up to 14 megahertz of spectrum in the 800 MHz low-band frequency range.
According to SpaceX, the low-band spectrum “addresses one of the key remaining technical gaps that will pave the way for Starlink Mobile to become a major mobile carrier in the U.S.”
Industry news outlets reported that AST SpaceMobile had been actively pursuing the same spectrum portfolio, only to be outbid by the better-capitalized rival.
SpaceX agreed to acquire the spectrum from digital infrastructure company Grain Management, giving the Starlink operator a crucial foothold in direct-to-device cellular connectivity.
By locking up these low-frequency airwaves, SpaceX effectively shut AST SpaceMobile out of spectrum capacity considered essential for competing in the direct-to-smartphone satellite market.
The move signals that SpaceX is serious about establishing a comprehensive wireless mobile platform, not merely a niche service targeting remote areas beyond terrestrial network reach.
Adding a fourth major telecom competitor with SpaceX’s technical capabilities could pose a serious challenge for the existing big three wireless carriers and emerging rivals alike.
SpaceX also received FCC approval last month for a 15,000-satellite direct-to-cell network, compounding the long-term pressure on AST SpaceMobile’s growth strategy.
Market participants also reacted to an early look at an upcoming Federal Communications Commission agenda, which flagged potential spectrum auctions that could further disrupt AST SpaceMobile’s carrier-partner business model.
Trading volume in ASTS reached 53.8 million shares on Friday, running approximately 318% above the stock’s three-month average of 12.9 million shares, reflecting the intensity of investor concern.
AST SpaceMobile closed at $50.97, while peer Iridium Communications closed at $47.47, down 0.19%, and SpaceX closed at $162.57, up 1.25%, illustrating the sharply divergent sentiment across the sector.
Analysts warn that the competitive overhang on satellite telecom valuations is unlikely to fade soon, as SpaceX continues to accelerate its wireless ambitions with considerable financial firepower.
Investors are now closely watching AST SpaceMobile’s carrier partnerships and commercialization progress to assess whether the company can carve out a sustainable position against its deep-pocketed rival.
Despite Friday’s sharp selloff, AST SpaceMobile has still delivered a 422% gain since its 2019 IPO, underscoring the high-risk, high-reward nature of the satellite broadband sector.
