Abel Avellan, founder and CEO of AST SpaceMobile, is aiming to disrupt the satellite internet market with a plan to provide direct-to-phone connectivity using a smaller constellation of large satellites. This contrasts with SpaceX's Starlink, which uses thousands of smaller satellites.
AST's large satellite antennas are designed to provide global coverage with only 90 satellites, enabling connectivity in remote areas. This differs from Starlink, which focuses on fixed internet access. While Starlink is testing text messaging via T-Mobile, AST aims for full broadband access directly to cell phones.
AST targets the underserved market of 2.6 billion people in developing countries lacking reliable internet access. The company projects significant revenue growth, potentially exceeding $370 million by 2026 and $5 billion by 2030, with lower capital investment than Starlink.
A major challenge is achieving direct line-of-sight communication, which AST addresses with its larger antennas and partnerships with telecom giants like Vodafone, Rakuten, AT&T, and Verizon. These partnerships provide access to a vast customer base and alleviate the need for extensive infrastructure.
Despite not yet generating significant revenue (only $4 million in 2024), AST's stock has experienced a substantial increase, attracting a dedicated online investor community.
While Starlink boasts a significantly higher valuation and more satellites, AST's approach emphasizes direct-to-phone connectivity and partnerships with existing telecommunication providers. The competition between the two companies is compared to the VHS vs. Betamax rivalry of the 1980s.