Space competitor unveils ambitious strategy to challenge Musk's Starlink, committing $1.5 billion towards a satellite expansion project

Stocks of AST SpaceMobile experienced a surge following the company's announcement to launch up to 60 satellites by the year 2026, a bold ambition they've set out.

, and Administrator

2025 August 31 . 11:13 AM

2 min read

Competitor of Starlink declares ambition to challenge Elon Musk with a massive $1.5 billion... — Competitor of Starlink declares ambition to challenge Elon Musk with a massive $1.5 billion investment in satellite technology

Space competitor unveils ambitious strategy to challenge Musk's Starlink, committing $1.5 billion towards a satellite expansion project

AST SpaceMobile and SpaceX are two prominent players in the emerging space-based broadband market, each with distinct strategies and technologies.

Overview and Strategy

AST SpaceMobile: Based in Texas, AST SpaceMobile is aiming to provide 4G/5G cellular broadband services directly to standard smartphones through giant satellites that function as cell towers. AST is collaborating closely with mobile network operators (MNOs), such as AT&T and Vodafone, to integrate its services into existing networks [1][3].
SpaceX (Starlink): SpaceX's Starlink is a dominant player in the satellite broadband market, targeting fixed broadband services and offering a wide range of applications, including partnerships with T-Mobile for mobile uses. Starlink relies on proprietary user terminals for connectivity and has a strong focus on fixed broadband, which differs from AST's cellular-first approach [2][5].

Technological Differences

AST SpaceMobile: AST's technology includes the BlueWalker 3 prototype, which successfully facilitated voice calls and data sessions in tests. Its BlueBird satellites are designed to provide direct-to-device (D2D) services with speeds up to 120 Mbps, rivaling terrestrial 4G/5G networks [1][3].
SpaceX (Starlink): Starlink uses a constellation of small satellites in low Earth orbit (LEO) to provide high-speed internet services. While it excels in fixed broadband, its mobile-focused initiatives, like the partnership with T-Mobile, are evolving [2][5].

Satellite Deployment Plans

AST SpaceMobile: AST began deploying its BlueBird production satellites in September 2022, with the launch of its first satellite, BlueWalker 3 [1]. AST plans to launch more satellites to provide coverage in the United States, Europe, Japan, and other key markets, with an average of one to two orbital launches per month during 2025 and 2026 [1][4].
SpaceX (Starlink): SpaceX has rapidly expanded Starlink's global coverage with thousands of satellites in orbit. It has a strong presence in the market, with ongoing deployments to enhance coverage and capacity [2][5].

Partnerships and Business Model

AST SpaceMobile: AST has secured partnerships with over 50 MNOs and is backed by major carriers like AT&T, Verizon, and Vodafone. This collaboration allows AST to offer wholesale connectivity solutions, reducing regulatory barriers and enhancing adoption [3].
SpaceX (Starlink): Starlink's business model involves direct-to-consumer sales, though it has partnerships with carriers like T-Mobile. Its focus on fixed broadband also includes military and government contracts [2][5].

Spectrum and Speed

AST SpaceMobile: AST holds significant spectrum rights, including 60 MHz of global S-Band and 45 MHz of L-Band, which support its 120 Mbps peak speeds per cell, akin to terrestrial networks [2][3].
SpaceX (Starlink): While Starlink's speed and spectrum specifics are less focused on mobile use cases, its sheer scale and rapid deployment strategy have made it a leader in satellite broadband [2][5].

In summary, AST SpaceMobile and SpaceX are pursuing different paths in the space-based broadband sector. AST focuses on mobile-first services with strong carrier partnerships, while SpaceX leads in fixed broadband with a strong presence in the market.