AST SpaceMobile announced on November 14 that it has secured launch contracts with Blue Origin, SpaceX, and India's GSLV to deploy a constellation of satellites by 2026, enabling full text, voice, and 5G data services to standard mobile phones across the United States and other key markets.
The company stated it has contracts to launch up to 45 Block 2 BlueBird satellites, with options for around 15 more, to provide nationwide coverage for its anchor customers, AT&T and Verizon.
AST SpaceMobile CEO and Chair, Abel Avellan, revealed during an earnings call that India's GSLV will launch the first Block 2 BlueBird. This will be followed by two SpaceX Falcon 9 rockets, each carrying four Block 2 BlueBirds. The company will then deploy the majority of the remaining satellites on Blue Origin's New Glenn rockets, which have the capacity to deploy eight satellites per launch.
Avellan expressed confidence in the availability of New Glenn, which is slated to conduct its maiden flight this year despite delays. He noted that the rocket is designed for reusability and multiple units are under construction.
Blue Origin declined to comment on its launch manifest.
A Block 2 BlueBird, when fully deployed, will be significantly larger than its predecessors, spanning 223 square meters compared to the 64-square-meter Block 1 BlueBirds launched in September. These newer satellites will also feature in-house developed chips, boosting their processing bandwidth to 10 gigahertz, ten times the capacity of Block 1, and supporting peak data rates of up to 120 Mbps.
The company's five Block 1 satellites are the same size as its two-year-old BlueWalker 3 prototype, which has achieved download speeds exceeding 21 Mbps during tests.
AST SpaceMobile has submitted a "Special Temporary Authority" (STA) request to the Federal Communications Commission (FCC) for permission to begin Block 1 beta services with AT&T and Verizon. The FCC granted a partial license in August.
The operator still needs to receive approval for commercial service in the United States, a requirement shared by other direct-to-smartphone competitors, including SpaceX.
Avellan believes that 45-60 satellites would be sufficient to deliver continuous space-based cellular broadband service in Europe and Japan, where the company has preliminary agreements with local telecom operators.
Andrew Johnson, AST SpaceMobile's chief financial officer, revealed that the operator expects to spend between $19 million and $21 million to build and deploy each Block 2 BlueBird, a slight increase from their previous estimate of $16 million to $18 million due to recent launch cost contracts.
AST SpaceMobile recorded $519 million in cash reserves at the end of September, a significant increase from the previous quarter's $288 million, fueled by a surge in stock prices following the announcement of their U.S. telco partnerships.
The company has submitted an application to the Export-Import Bank of the United States for debt financing. Johnson stated that securing this financing would enable them to fund large projects cost-effectively.
AST SpaceMobile anticipates a surge in capital expenditures as satellite production scales up and launch payments become due, increasing from $27 million in the third quarter to approximately $100 million in the fourth quarter of 2024. The company expects to secure additional funding sources after deploying 25 Block 2 BlueBirds, potentially including free cash flow generated by the constellation itself.