AST SpaceMobile, Inc. (NASDAQ:ASTS) shares are trading higher premarket on Friday.
On Thursday, the company received Special Temporary Authority (STA) from the Federal Communications Commission (FCC) to conduct testing in the U.S.
This approval allows AST SpaceMobile's first five commercial BlueBird satellites, currently in low Earth orbit, to operate with unmodified smartphones using AT&T and Verizon's premium low-band spectrum.
The testing supports voice, full data, video applications, and other native cellular broadband capabilities without requiring specialized software, devices, or updates.
The FCC's approval reflects its shared priorities with AST SpaceMobile. These include expanding digital access, strengthening emergency communications, and accelerating digital transformation.
The decision also supports U.S. leadership in the emerging space economy and direct-to-device technology.
The Block 1 BlueBird satellites will provide intermittent cellular broadband service across the U.S. and select global markets, targeting nearly 100% nationwide coverage with over 5,600 coverage cells.
The next-generation Block 2 BlueBird satellites, with up to 2,400 square-foot arrays, will deliver up to 10 times the bandwidth of Block 1, supporting peak speeds of 120 Mbps for voice, data, and video.
Vikram Raval, Global Head of Regulatory Affairs of AST SpaceMobile, said, "The FCC USA regulatory approvals represent a pivotal moment for AST SpaceMobile as we advance toward delivering seamless space-based cellular broadband connectivity."
"Alongside integration efforts with partner networks we are installing five gateways in the United States, and we are now accelerating our path to commercial activity, starting with testing service with off-the-shelf cellular handsets on AT&T and Verizon networks," said Chris Ivory, Chief Commercial Officer of AST SpaceMobile.
Notably, in 2024, AST SpaceMobile secured investments from AT&T, Verizon, Google, and Vodafone, along with U.S. government contracts. The company partners with over 45 mobile operators serving 2.8 billion subscribers.
Investors can gain exposure to the ASTS via Procure Space ETF (NASDAQ:UFO) and SPDR S&P Telecom ETF (NYSE:XTL).
Price Action: ASTS shares are up 6.48% at $19.40 premarket at the last check Friday.
Image: Shutterstock/ nmedia.
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