AT&T Chief Praises Satellite Constellations

In a recent interview with CNBC, AT&T's CEO John Stankey has expressed his support for AST SpaceMobile, stating: "Satellite constellations are going to be great. People are going to have always on connectivity; there will be no more [dead spaces], and this is why we are doing what we are doing with AST, which will make sure that your device can be connected no matter where you are." 
 
Stankey’s endorsement came just ahead of the launch of five spacecraft by AST using SpaceX's Falcon 9 rocket on September 12th. As a major investor in AST, AT&T’s advocacy shouldn’t come as a surprise. 
 
The optimism shared by Stankey was also echoed by Scotiabank earlier when it raised its share price target for AST stock to $45.90 on September 9th. The bank further stated that given its pioneering advantage from the upcoming launch, AST could potentially become an attractive M&A target not only for SpaceX but also anyone who grasps the significance of Supplemental Coverage from Space in shaping the future global wireless industry. 
 
However, Scotiabank's report displayed pessimism towards Starlink, another satellite company owned by SpaceX, particularly regarding direct-to-cellular (D2C) activity. It suggested that Starlink might face difficulties getting FCC approval due to ongoing disputes over spectrum and transmission rights. 
 
A denied ‘waiver’ request would mean some satellites risk becoming 'zombie' satellites—those incapable of communicating or fulfilling their intended purpose owing to lack of regulatory permission or technical malfunctioning. 
 
Scotiabank proposed limiting numbers as one possible solution for FCC if it wishes to control interference levels caused by excessive D2C craft operations. 
 
Facing such predicaments leaves SpaceX with tough choices, according to Scotiabank: either redesigning satellites, risking potential patent-enforcement action from rival companies like AST, or waiting until the World Radiocommunications Conference in 2027 for possible rule modifications on transmission limits. 
 
Alternatively, Starlink could buy or acquire more frequencies to expand its operations or even consider buying AST. Such speculation has led Scotiabank to label AST as an M&A target and issue a 'BUY' recommendation along with a 'sector outperform' rating. 
 
Despite the challenges, Starlink currently operates more than 130 D2C satellites in orbit. 
 
The scheduled launch of five BlueBird Block 1 satellites by AST is set for September 12th at 04.52 EDT (08.52 am UTC). 
 
Juniper Research's report anticipates that commercial direct-to-cell services will start generating revenue globally from 2025, beginning modestly with $30 million but potentially becoming extremely valuable thereafter. 
 
Stankey’s remarks and the upcoming launch signify AT&T's commitment towards leveraging space technology to provide uninterrupted connectivity across the globe, further cementing its position as a major player in this innovative field.