AST SpaceMobile Falls 6% as SpaceX Spectrum Deal Closes Off Low-Band Option; Rocket Lab and Planet Labs Slip

AST SpaceMobile (NASDAQ:ASTS) shares are falling after a larger rival secured low-band frequencies the company had pursued. SpaceX (NASDAQ:SPCX | SPCX Price Prediction) agreed to acquire a nationwide portfolio of low-band spectrum from a privately held owner, a move that tightens competition for satellite links to ordinary phones. Losing that option removes one potential path for AST SpaceMobile to expand its low-band capacity.

AST SpaceMobile stock is at $53.67, down 6% this morning. Meanwhile, Rocket Lab (NASDAQ:RKLB) stock is at $67.52, down 1%, a much less severe drawdown when compared to AST SpaceMobile shares. Planet Labs (NYSE:PL) stock trades at $16.81, down 2%.

The Procure Space ETF (NASDAQ:UFO) is up 0.18% to $42.08. A space fund ticking higher while AST SpaceMobile stock falls quickly marks the selling as an ASTS repricing rather than a move across all space names. That difference points back to the specific spectrum exposure AST SpaceMobile carries as a direct-to-device operator.

SpaceX Claims Spectrum AST SpaceMobile Wanted

Grain Management, the privately held spectrum owner, stated that SpaceX would acquire its entire nationwide low-band spectrum portfolio. Completing the deal still requires regulatory approval, and its terms were left undisclosed. AST SpaceMobile had pursued those same frequencies, so the agreement closes off a potential source of additional low-band spectrum while leaving the company’s existing commercial carrier arrangements unchanged.

The mid-band side of AST SpaceMobile’s spectrum plan carries more weight now, since the company already has deals in place there. Through definitive agreements with Ligado Networks, a privately held satellite communications firm, AST SpaceMobile holds long-term access to lower mid-band spectrum in the U.S. and Canada. Telecom analyst Roger Entner of Recon Analytics noted after the announcement that Ligado is next, a view that puts AST SpaceMobile’s agreements with the firm in focus.

Launch and Imaging Names Stay Clear of the Spectrum Race

AST SpaceMobile sells satellite service to standard phones through carriers that keep the customer relationship, and low-band frequencies carry signals far and through buildings, which suits direct satellite links to phones indoors.

Rocket Lab sells launch services and spacecraft hardware, and Planet Labs operates an Earth imaging constellation. Neither relies on direct-to-device spectrum. The bull case for Rocket Lab is clear: its launch and hardware business sits outside the spectrum fight, and the bear case is that SpaceX remains a far larger launch rival. For Planet Labs, the bull case is an imaging business insulated from spectrum disputes, while the bear case is that its quiet move signals little near-term enthusiasm.

On the bearish side for AST SpaceMobile, a well-funded rival has taken spectrum the company wanted and could compete directly for the phone users AST SpaceMobile reaches through its carrier partners.

Optimists could argue the same threat gives carriers reason to strengthen ties with AST SpaceMobile, a partner that extends coverage without taking their customers.

What to Watch Next

Regulatory approval is the next checkpoint for the Grain Management transaction. Shareholders can watch for whether regulators sign off and whether the parties disclose the terms.

Ligado is the second open question after Entner’s comment. Any change to AST SpaceMobile’s Ligado agreements could matter more to its spectrum plan than the low-band portfolio that went to SpaceX.

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