Updated

Updated · PCMag · Jul 16

AST SpaceMobile Delays Service to 2027, Raises $1 Billion After Blue Origin Blast

Updated

Updated · PCMag · Jul 16

AST SpaceMobile Delays Service to 2027, Raises $1 Billion After Blue Origin Blast

Q: With its primary launch partner sidelined, is AST's pivot to rival SpaceX a sustainable strategy for its global network?

Yes—AST SpaceMobile’s turn to SpaceX looks sustainable as a near- to medium-term fix, but not as an ideal long-term dependence for a global network. The immediate case for SpaceX is strong. Falcon 9 is flying at high cadence, and AST has already used it to launch three BlueBird satellites in June, with three more planned for early August. That gives AST a practical path to keep building toward service for AT&T, Verizon and other partners after Blue Origin’s New Glenn explosion on May 28 and the earlier loss of BlueBird 7. With FCC approval for its U.S. direct-to-device constellation and about 60 mobile operator partners globally, AST cannot afford a prolonged launch pause. Financially, AST has room to execute. It reported roughly $2.7 billion in cash at the end of June and is raising another $1 billion through convertible notes to secure more access to orbit. That should help it buy launch flexibility and protect its manufacturing ramp as it targets 45 BlueBirds in orbit by early 2027. The risk is concentration. SpaceX is both AST’s launcher and a direct competitor through Starlink’s mobile service, which weakens AST’s bargaining power on price, schedule and strategic leverage. Blue Origin may return before year-end, but timing is uncertain, and ULA’s Vulcan is also constrained by its own issues and backlog. So the SpaceX pivot is sustainable if AST treats it as part of a diversified launch strategy, not a permanent single-provider solution.

3 articles · Updated · PCMag · Jul 16

AST SpaceMobile told regulators its satellite-to-phone service will slip to 2027, missing a late-2026 target as launch availability tightened after Blue Origin’s New Glenn exploded in a ground test.
About 45 BlueBird satellites are now targeted for early 2027 instead of by the end of this year, delaying the scale needed for broader coverage with partners including AT&T and Verizon.
SpaceX is partly filling the gap: AST launched three BlueBirds last month and plans three more on Falcon 9 in early August, but that would leave only 13 satellites in orbit including prototype BlueWalker 3.
$1 billion in convertible notes is meant to secure additional access to orbit and support possible partnerships, acquisitions or deeper vertical integration, though AST said it has no agreements for such deals yet.