I’d like to talk a little about what AST SpaceMobile Inc.’s (ASTS) satellite launch and future services could mean for some potential customers. AST is building the world’s first space-based cellular broadband network that, when complete, could provide uninterrupted smartphone coverage across the globe, notes Tyler Laundon, editor of Cabot Early Opportunities.
That’s probably not important to people who never venture out of cell phone range or don’t care to use data-intensive applications while off WiFi. But it matters a lot for those that do. And for those (and there are many) who don’t live in areas with good cell coverage, with reliable Internet at home, and/or that venture off-grid where cell coverage doesn’t exist, this is a big deal.
AST SpaceMobile Inc. (ASTS)
Let’s talk about AST’s service in the context of offshore ocean expeditions. It provides a good example of how this technology and service is compelling. Right now, if you have a boat big enough to go offshore, you will likely lose cell coverage quickly. Where I live in Rhode Island, that’s usually between 15 and 20 miles offshore.
At that point you are somewhat cut off, relying on VHF radio to communicate with other vessels but not able to send a text to friends and family – or access any apps on your mobile device that require a connection.
To keep in touch, there are satellite-based services that work on devices from manufacturers like Garmin. These allow your mobile phone to connect to the device and, with a subscription service, relay text messages from your phone to whomever you wish. Handy for sure, but limited.
Another option is Starlink, which is owned by Elon Musk’s SpaceX. This is a no-contract satellite internet provider that offers various tiers of internet plans. But it has limitations as well. Unlike small “relay” devices like Garmin’s inReach, which have long battery life, it needs to be constantly powered. The antenna is about the size of a toaster tray and there is a router, so it’s a whole setup.
Now consider a service where all you need to do is sign up for a subscription plan on your mobile device, and head offshore. No extra gear to buy and install, no other devices to manage. Just your phone, tablet, or whatever you typically use. This is what AST is offering – and why there is so much excitement around the company.
The company’s first five satellites are expected to launch in September. They won’t blanket the globe right away, or even provide continuous coverage over the US for whoever wants to pay for a plan. More satellites will be needed.
But the BlueBird satellites represent a big leap forward in the race to provide convenient, reliable cellular broadband coverage using only the device in your pocket. Starting a few weeks ago, the basic Starlink hardware package (the Starter Kit) went on sale, discounted from $499 to $299. I’m not saying there’s a connection here. But I’m also not saying there isn’t!
Recommended Action: Buy ASTS.
