AST SpaceMobile shares rose modestly in pre-market trading after AT&T CEO John Stankey questioned the viability of competitor SpaceX’s direct-to-device strategy. [4]
Stankey cited the cost of SpaceX’s proposed rooftop cellular network and the need to obtain permission from property owners, calling the strategy “not viable.” [4]
His comments could benefit AST SpaceMobile, which partners with mobile network operators such as AT&T and Verizon. ASTS says its technology connects standard, unmodified smartphones using carriers’ existing licensed spectrum, avoiding the infrastructure challenges Stankey described. [4]
Stankey’s criticism highlights a potential advantage of ASTS’s carrier-partnership model in the developing satellite-to-cellular market, but does not amount to an endorsement of ASTS. [4]