Shares of AST SpaceMobile are surging following AT&T's announcement on Wednesday evening that it is partnering with the satellite provider to offer customers wireless service from space.
"AT&T* and AST SpaceMobile have entered a definitive commercial agreement to provide a space-based broadband network direct to everyday cell phones. This agreement extends until 2030," AT&T wrote in a statement.
— AST SpaceMobile (@AST_SpaceMobile) May 15, 2024
Bloomberg journalists were ecstatic to hear that Elon Musk's dominance in space-based communications now has a competitor. But how strong of a competitor is AT&T? Well, meh, their foray into space with its DirectTV partnership has been a disaster.
Meanwhile, Musk's SpaceX has been working with mobile carrier T-Mobile to unleash space-based service for mobile phone users via Starlink's massive satellite contestation in low-Earth orbit. This service could come online later this year.
The agreement between AT&T and AST will run through 2030. What's amusing is that AT&T and AST, soon-to-be Musk's new competitors, have to use the billionaire's SpaceX rockets to blast satellites into low-Earth orbit. The five satellites will be loaded on SpaceX rockets in Cape Canaveral, Florida, by mid/late summer, with launches shortly after.
"Space-based direct-to-mobile technology is designed to provide customers connectivity by complementing and integrating with our existing mobile network," Jeff McElfresh, AT&T's chief operating officer, said in a statement.
McElfresh continued, "This agreement is the next step in our industry leadership to use emerging satellite technologies to provide services to consumers and in locations where connectivity was not previously feasible."
Shares of AST jumped 41% in the early US cash session.
What's evident is that Musk dominates space-based communication via Starlink and rocket launches into space via SpaceX.
As we've said before, Musk is becoming an uncancellable billionaire, and Democrats, with their dark money-funded non-governmental organizations, are trying everything in their power to crush him. Good luck with that one.
Has anyone heard if Jeff Bezos can still get his rocket up?
