Latest / AST SpaceMobile Podcast / Anpanman - The FCC Greenlight: AST SpaceMobile’s Watershed Moment
Transcript
- 0:07This is the AST Space Mobile podcast.
- 0:09We. Just basically come your phone
- 0:12and be seamless. But regardless of where you are,
- 0:15we don't want the user even to know that it's connected by
- 0:17satellite, satellite. Listen, the opportunity that we
- 0:22have is very, very, very large. Everyone, thanks for joining on
- 0:29what is a beautiful sunny day here in New York.
- 0:32Although it is a little chilly, but what an amazing day.
- 0:37What a complete emotional roller coaster.
- 0:41I for what it's worth, I sent Scott when is Wisniewski a text
- 0:45message and gave him Congrats and he agreed that the last few
- 0:49days has has been an absolute roller coaster of emotions.
- 0:54So, you know, going down to Florida, celebrating with all
- 1:01you folks of the Blue Origin, New Glenn three launch of
- 1:05Bluebird 7. And then of course, you know,
- 1:09the rocket being successful, the first stage, second stage, of
- 1:12course having a failure and then we lose our satellite.
- 1:15And you know, everyone went into this stage of mourning and
- 1:20depression. And and then of course the
- 1:22market opens and you know, the stock was down, but it fought
- 1:25its way back. And, you know, I think everyone
- 1:29pretty much accepted that this is just part of space.
- 1:31And, you know, we, we, we took our lumps on the chin with the
- 1:36view that nothing about the thesis has changed.
- 1:38And if anything, I think I, and I fully believe this.
- 1:41I think it losing a satellite for Blue Origin and ourselves
- 1:45was a galvanizing event. I think it's going to motivate
- 1:49folks at both companies to work even harder to make sure that
- 1:54this consolation for ASD Space Mobile and for Blue Origin, New
- 1:58Glen, you know, 77 by 2 and 9 by 4 will be successful.
- 2:05And so, so yeah, we, we, you know, I, I truly believe like we
- 2:09look back a year, 2-3 years from now, we will say, man, that was
- 2:14a Seminole event. You know, that that's going
- 2:16through that adversity. Just like when the stock was at
- 2:19$2.00, it forged a lot of bonds between people and, and, you
- 2:25know, there's nothing quite like going through that level of
- 2:27difficulty and emotional strain and coming out of it on the
- 2:31other side and reaping the rewards.
- 2:34Those types of friendships, they're, they're incomparable,
- 2:37right? Because you, you, you, you get
- 2:39tested in terms of your mental resolve to the absolute limits.
- 2:42And a lot of us, Stanley, you know, faced financial ruin at
- 2:46that point. But we held with conviction and
- 2:49we came back and we didn't just come back.
- 2:51We didn't just like go from 2:00 to 10:00, you know, we went to,
- 2:55I mean a peak recently 128 and and that's going to be a new low
- 2:59$128.00. That's going to be a 52 week low
- 3:02at some point once we get back there.
- 3:05And so, yeah, what a crazy journey.
- 3:11I, I was joking with someone today that perhaps the FCC
- 3:14decided to grant us the application, which is what I'm
- 3:17going to talk about. But they maybe they decided to
- 3:19do that because they, they saw that we knew how to deorbit a
- 3:22satellite properly, which is a concern for all these
- 3:26applications. But anyway, the big news putting
- 3:30them the my preamble side is that the FCC has granted us full
- 3:36US commercial active. This is a tremendous event.
- 3:39This is something that's been in the works for many years.
- 3:43It's something that, you know, we were told as investors it
- 3:48would not happen by all the haters and doubters, whether
- 3:52they were industry consultants like Tim Ferrar.
- 3:57You know, some of these Anon accounts.
- 3:59I mean, I'm an Anon account, but free speech, who else is there?
- 4:02I mean, there's a whole litany of these, these clowns.
- 4:05And then of course, like all these legacy satellite players
- 4:09who from the outset, I remember Alan Gottlieb, Charles Miller of
- 4:16Links, you know, they're, they're all these people writing
- 4:18these articles. This was like back in 2020-2021
- 4:22about how a Bell and his engineers didn't know what they
- 4:25were doing. The satellite was going to melt.
- 4:27We couldn't, we couldn't make a link budget.
- 4:29I mean, any number of things. They, they just injected so much
- 4:33fun. And then, you know, obviously
- 4:34the direct advice market, it's niche.
- 4:36No one's going to care because, you know, these legacy guys and
- 4:40their paid consultants, they had the most to lose.
- 4:43They had their backs against the wall, you know, for radium.
- 4:47We always joked that Matt Dash, you know, I that company, once
- 4:52they were, you know, generating cash, it was really a financial
- 4:56engineering machine. You know, they, they use that
- 4:59cash to pay out dividends and buy back stock, but they never
- 5:02reinvested in something new. They didn't, you know, they
- 5:04have, they have valuable spectrum, but they never put up
- 5:06a new consolation. They just kind of sat there
- 5:09telling trollers they were going to buy back stock and lever up
- 5:12the company until this little player ASD space mobile came
- 5:16along and everyone called a bell fool.
- 5:18And and you know, he's like, well, I'm going to create these
- 5:21massive satellites with high power, large phase arrays and
- 5:25I'm going to connect to everyday cell phones and that's going to
- 5:28be a game changer. And from a Bell's point of view,
- 5:30like the key was to connect the unconnected and go out to, you
- 5:37know, his, his mission was to go out to a majority, you know, a
- 5:41large part of the population of the world who didn't have any
- 5:43connectivity, whether that's fix connections or, you know, mobile
- 5:47connections. But to really bring broadband
- 5:51connectivity to those underserved areas and lift
- 5:54people out of poverty, which meant bringing Internet, which
- 5:58which then, you know, you bring financial services, education,
- 6:01health, all kinds of things. So we all know what the benefits
- 6:04are of having Internet connectivity.
- 6:07And so that was a primary mission.
- 6:10And then, of course, the mission expanded where you, you know,
- 6:15the, the with the consolation, obviously, you know, addressing
- 6:18the US market was was critical to that.
- 6:20And then and then we expanded into these defense applications
- 6:23as well. But apologies for the noise
- 6:26here. I'm actually at soccer practice.
- 6:27But yeah, here we are. I mean, through all that hate
- 6:31and FUD and doubters, you know, you name it.
- 6:35And short sellers, Oh my God, the short sellers were the
- 6:37worst, right? For they, they were the ones who
- 6:39try to contort and distract and put out all kinds of, you know,
- 6:46basically bullshit to starve the company of capital so that it
- 6:50would fail and they would profit from its, from its bankruptcy.
- 6:54But they lost. They got their asses handed to
- 6:56them, right? And So what today's FCC
- 6:59approval, what it means is, is true validation, right?
- 7:03So we've gone through this regulatory review process for
- 7:07four to five years. And yes, it took a really long
- 7:12time. And the FCC in granting these
- 7:15things, they don't take it lightly, right?
- 7:16Like it's, this is part of the regulatory mode.
- 7:18It's not as if any company can come in and it doesn't matter
- 7:22how big the company is. Like you have to go through this
- 7:24process. You have to prove your
- 7:26technology, you know, from regulatory perspective, you know
- 7:30what you're doing and you know, risk mitigation.
- 7:35I mean, there's all these things that kind of come into play.
- 7:38And so it's not something that is granted lightly, right?
- 7:41And so we have this validation. It's a valuable grant where we
- 7:46can put up a constellation of 248 satellites to provide
- 7:49directed device broadband. And that's valuable.
- 7:52Like even if ASD for some reason does not exist tomorrow, having
- 7:57this, this is is valuable where even other companies would look
- 8:02to potentially acquire it because it is a true asset,
- 8:05right? And so, but having this, this,
- 8:09this granted is, you know, it's a key point of validation for
- 8:13the company. And it's something, for example,
- 8:15you know, Kevin Chen just pointed out that the $45,000,000
- 8:20that was part of the pre commercial prepayments from
- 8:24Verizon that just got unlocked due to this this grant.
- 8:28Also, I believe First net, you know, there probably were some
- 8:32conditions precedent that, you know, that we would get in order
- 8:37for our contract with Firstnet to be to go into the fact which
- 8:41we don't know what the economic terms are, but we know that it
- 8:43exists. My guess is that we'll find out
- 8:47that it is going to now go definitive, right?
- 8:51Because now we have FCC approval.
- 8:53Obviously a Firstnet would not want to enter into a contract
- 8:56with us without FCC approval. But now that we have it, I'm
- 9:00guessing in the next few days or so.
- 9:01You know, we always joke imminent that's going to happen.
- 9:05And so this is a yeah, this is a tremendous milestone.
- 9:09The other thing is that the FCC is considered kind of the gold
- 9:14standard from a regulatory perspective across the world.
- 9:17And so by us getting full FCC approval, that actually opens up
- 9:26regulatory approvals like across the world, right, Because we're
- 9:28not some small company based on the Midland, TX.
- 9:31We actually are, you know, the leading, you know, we created
- 9:35this market. We, we have the, the
- 9:38technological lead. And from regulatory perspective,
- 9:42other regulators around the world are going to come to the
- 9:43US and say, talk to chair Carr, talk to the FCC and, you know,
- 9:47ask them questions about AST space or not, because, you know,
- 9:51we already have the the grants. And so they will use that as a
- 9:54template or, you know, it's kind of like you're already pre
- 9:57approved around the world. Like if you have AUS passport,
- 10:00you can kind of travel anywhere. That's kind of what this is akin
- 10:03to where from a regulatory perspective this is going to
- 10:06ease things significantly, right.
- 10:10And So what could have taken long in these other
- 10:12jurisdictions is just going to make it that much easier.
- 10:16And so I don't, I don't not sure like how much the market fully
- 10:21appreciates this. And perhaps it'll take a few
- 10:23days and obviously we're still kind of recovering from what
- 10:27happened over the weekend. But this I, I think for those of
- 10:31us who have been falling the company for many years, this is
- 10:34a true watershed event. This is game changing now from a
- 10:39regulatory perspective, we don't have to keep going back to the
- 10:41FCC to, you know, when we, we have approval rules right now
- 10:45for 25 satellites before, you know, before this grant.
- 10:48But had we not had this grant, we would have had to go back and
- 10:52get St. as you know, a special temporary authority for like
- 10:55another 10 satellites, another 10.
- 10:58Now we can just launch the satellites like it, that's it,
- 11:01that's it. Like we can build, we can build
- 11:04456070 up to 248 and go, just go throw these up there, right as
- 11:10as our friend Kevin Mack like to say, we can go go throw a metal
- 11:15up there. And so this is, this is huge,
- 11:18right? Like we don't have to keep going
- 11:21back to the FCC, wait for the bureaucracy to turn things
- 11:24around. Like, you know, we're open for
- 11:28business. We can, we can build satellites
- 11:29and go launch them. And so this is for the Block 2
- 11:34satellites. And so obviously, you know, when
- 11:36we get to a point where I think the company is planning to
- 11:41towards the end of this year, we are probably going to start
- 11:44building Block 3 satellites. That will be a separate,
- 11:48separate application. That said, it will be easy given
- 11:52that we have this in place and, and clearly the FCC has
- 11:55demonstrated confidence in, in what we're doing.
- 11:58I mean, going back to what Chair Carr said in the interview
- 12:02during the Amazon Global Star deal, he talked about that, you
- 12:06know, hoping that there would be a three player market, which
- 12:09would be Starlink, ASD Space mobile and, and Amazon.
- 12:13Obviously, you know, I've, I've talked about this before, but
- 12:16Amazon Global Star that that transaction is going to rely on
- 12:22Global Star's NDA space consolation for the next,
- 12:25actually for the forseeable future, maybe the next three to
- 12:27four years. And so it's unclear what
- 12:31Amazon's going to do for the next, during next generation
- 12:35satellites. You know, perhaps maybe they'll
- 12:37get something going in 20-30. But but yeah, I mean, at this
- 12:41point, it's the company's market right now.
- 12:44I mean, Starlink has 600 and 51st generation direct to sell
- 12:48satellites. It's going to take them probably
- 12:51till 2029 to get V2 going. And that that satellite in of
- 12:56itself is going to be perhaps maybe comparable in some ways,
- 13:00which I mean, you have to be seen obviously Starling to make
- 13:04a lot of claims. But then the proof will be in
- 13:05the pudding. But they're hoping to catch up
- 13:07to what we're doing right now in our current generation.
- 13:10And as the Bells laid out, you know, the current Block 2
- 13:13satellites already at launch talked about getting performance
- 13:16above 150 megabits per second per cell and has talked about
- 13:22AAI optimization helping them to tiger things to get 3X
- 13:28performance near term and potentially up to 11X
- 13:30performance over the long run. And so, yeah, I mean, it's not,
- 13:36it's kind of funny because like you hear these skeptics who say
- 13:39that that Starlink is going to crush us, but this company,
- 13:42they're not. They created the market, they've
- 13:45got the technological lead and they're not sitting on their
- 13:46ass. Like we've already got several
- 13:50generations of designs already on the, on the, you know, on the
- 13:54plans and we'll be executing on those.
- 13:57And so it's not as if, and this is a great thing about vertical
- 14:00integration. You can iterate very quickly,
- 14:02right? I mean, we just going back to
- 14:05the composite shells, having to strengthen those after the
- 14:09company tested and figured out that the shells were not strong
- 14:13enough for vertical sacking, we fixed it.
- 14:15We retrofitted the ones we had and then we created a new design
- 14:19for the next 7 satellites that we were building.
- 14:23And that's what it takes when you, when you're vertically
- 14:26integrated, you can make these quick adjustments, right?
- 14:28And, and improvements. And so it'll be, it'll be quite
- 14:32scary to see where the Block 2 satellites are in terms of
- 14:35performance once the, once the ASICS are incorporated and these
- 14:40optimization techniques are in place.
- 14:42And, and I, I mentioned this in another space.
- 14:45I mean, I did ask, I did ask the company, you know, hey, we lost
- 14:49BB7. Is there, is there a need or
- 14:51interest to build another one and go launch it?
- 14:54And the response was that no, because BB7 was a backup to BB6.
- 14:58But more importantly, that design is old.
- 15:01They've actually, I was told that they moved on to the next
- 15:05generation satellite for SDA. So I don't know what number of
- 15:11satellite that's going to be, but sorry for all the sirens
- 15:14here. But you know, it, it just shows
- 15:17like the company is innovating, right?
- 15:18Like they're not, they're not sitting by idly and letting the
- 15:22market, you know, catch up to them.
- 15:24They're they're leading the market and they're creating even
- 15:26more space between them. And so, yeah, what a what an
- 15:31amazing, pivotal, you know, event here.
- 15:35I mean, I think I think, yeah, just just thinking about all the
- 15:42years of heartache and like wondering from a regulatory
- 15:45point of view if we were ever going to get to this point.
- 15:47And, you know, we got to we got to I I know from a political
- 15:50perspective, maybe folks aren't, you know, they may not agree
- 15:55with this current administration, which is totally
- 15:56fine. And we we're all Americans and
- 15:58we can agree to disagree and have different political point
- 16:00of views. And and Brendan Carr is a is a
- 16:03certain type of, you know, he's he's he's a unique FCC chair.
- 16:06I'll say, I'll say, yeah, I've, I've seen, you know, and I
- 16:09invested under many different FCC chairs and, and Brandon Carr
- 16:12is unique. But what I will say is this guy
- 16:16gets shit done. I mean, you may not agree with
- 16:18him politically, but in terms of cutting red tape and trying to
- 16:23enhance competition and really push forward American companies
- 16:26to lead globally, I don't I don't know if we could have
- 16:30asked for a better FCC chair. And so I think one thing I would
- 16:34ask people to do is even if you don't agree with him
- 16:36politically, which is totally fine, I, I would give him props
- 16:40and a shout out for bringing this application and
- 16:44encouraging, you know, competition and really driving
- 16:49innovation and leadership. Because I think I don't think he
- 16:53gets enough credit. And, and honestly, like for
- 16:56especially like a very visible group of people like Space Mob,
- 17:00I think it's important to, you know, pat our regulators on the
- 17:04back and, and, you know, give them, give them their props
- 17:06when, when they actually do the right thing and, and move, move
- 17:10innovation forward, which is what happened today.
- 17:12And so, but yeah, I, I think, yeah, I'm, I'm beside myself.
- 17:18This is, I know, I know there's probably people out there, maybe
- 17:21Kevin Mack will say like, oh, it's priced in the market.
- 17:24Sure, it's probably priced in to some degree, but I, I don't
- 17:27think I, I think this is a true, you know, about validation event
- 17:36and, and people, you know, those people who may have dismissed
- 17:40AST in the past. There, there's no way around
- 17:42this. And, and so I mentioned, you
- 17:44know, I, I tweeted, it's going to be very fun and entertaining
- 17:50to see the, the mental contortion in gymnastics of
- 17:55these bears and the, the, these, you know, whether it's Tim
- 17:59Ferrar or, or some of these other supposed industry
- 18:03consultants who are, by the way, paid by Global star and Iridium
- 18:05to basically throw shit out. How are they going to spin this?
- 18:08My guess is that Tim Farrar will just like retweet the FCC.
- 18:14You know, whoever tweets like the full approval, he'll just
- 18:16retweet it, but he's not going to comment on it because the guy
- 18:18looks like a complete ass, like he has been completely wrong
- 18:24this entire time. And there's just, there's like
- 18:26no negative way to spin this. I mean, I, I am looking forward
- 18:30to any potential creativity where he's going to try to find
- 18:33some portion of the application where maybe they didn't get some
- 18:38part approved or maybe it's kind of up in the air, or maybe it's,
- 18:41I don't know. He's just going to try to spin
- 18:43it negatively. And but that's his brand, right?
- 18:46And he's just a, he's an awful human being and, and so are the
- 18:51rest of these guys. But anyway, yeah, what an
- 18:54amazing day. I'm sure the, the space talk
- 18:59weekly. We'll, we'll, we'll, we'll talk
- 19:01about it this evening. And yeah, I, I don't know, let
- 19:06me just look at the comments here.
- 19:09There probably aren't as many. Someone's asking to what degree
- 19:12do we think this was priced in? It was probably priced in.
- 19:16And you know, we've been talking about it for, for a really long
- 19:19time, but I don't know, that's a good question.
- 19:21I mean it, it probably has been priced in to some extent, right?
- 19:27I mean, the fact that Chair Carr last week said it's a three
- 19:30player market, which by the way, like for anyone who thinks that
- 19:34going from a duopoly to a potential, you know, oligopoly
- 19:38of three players, that's still a really great market from an
- 19:42economic standpoint, right? I mean, just look at the US
- 19:45wireless carriers, but I would argue that Amazon is not, well,
- 19:50Amazon am Starlink there. Starlink has a has a minimally
- 19:54viable product today, but neither of them are broadband
- 19:57and neither of them are going to be broadband for the foreseeable
- 19:59future. So it's really just a monopoly
- 20:01at this point. But even if it does devolve into
- 20:05a an oligopoly, like that's going to be good.
- 20:07So, so yeah, but let's see. But in terms of, you know, how
- 20:12much is pricing, it was probably pricing to a degree, but we'll
- 20:15see. I mean the market, there's going
- 20:16to be APR that comes out from the company.
- 20:18If you were going to be writing about this, who knows?
- 20:21I mean, what's not priced in is a a ton of institutions in
- 20:26retail who have no idea who AST Space Mobile is, who who then
- 20:29will learn about the company. You know, obviously that the
- 20:31negative negativity from the Blue Origin losing the AST Space
- 20:36Mobile satellite like that actually brought some attention
- 20:38and awareness to the company. This is going to do it.
- 20:40So from that perspective of bringing potential new investors
- 20:44that that part's not priced in. So, so we'll see someone asking
- 20:48is the satellite 248 satellites for US or worldwide commercial
- 20:51use satellites by their very nature are for worldwide use.
- 20:56And this this consolation is built to serve M and OS
- 20:59globally. So this is for worldwide.
- 21:01However, the US application is specifically for the US, which
- 21:05is the most profitable market in the world, but also being
- 21:09domiciled here and being AUS company, we need that FCC
- 21:13approval because that also allows us to operate worldwide.
- 21:18So, so it so it is, it is global.
- 21:22But yeah, we will when serving other markets like Sacco who
- 21:29who's operating in in Europe, we will need to get separate, you
- 21:33know, regulatory approvals from Europe to operate.
- 21:36Obviously that was it 2 weeks ago, we got the the final step
- 21:42to the final step UK approval from Ofcom to operate there.
- 21:46I believe there's one more, there's one more process that
- 21:50has to take place where we get full approval, which is why the
- 21:53company didn't PR that just yet. But that's coming I believe in
- 21:55May. And so by the way, like people
- 21:58talk about, hey, there's no catalyst coming.
- 22:00We just had one dropped out and there's a lot more coming.
- 22:03And so and there's stuff that we as space mob, believe it or not
- 22:07with all the due diligence that we don't even know yet or
- 22:10haven't seen. So, yeah, let me look, we're
- 22:15what does this approval mean for debt financially wise?
- 22:19Better rates, more institutional interest.
- 22:21This approval is it unlocks a bunch of business.
- 22:27Obviously, you know, the, I think the first net contract is
- 22:30going to, is going to go hard at some point, you know,
- 22:33definitive. And so when you have these
- 22:37definitive commercial agreements with real economics, then you
- 22:40can, if you want, you can raise debt against that.
- 22:42You can do all these different things and yeah, it brings
- 22:46institutional awareness. People who might have dismissed
- 22:50AST, that's a science project. They don't have approval for a
- 22:53full consolation. Oh, wait, hold on.
- 22:56They have approval for a full consolation like it's real.
- 22:58And and they're launching their service this year and what I
- 23:03from two or three years ago when it was like at a developmental
- 23:06phase, now they're actually putting up the consolation and
- 23:09the writing service. That's a very different story to
- 23:11underwrite for investors. And so when we talk about DE
- 23:14risking getting full FCC approval for U.S. market access
- 23:18for a 248 satellite consolation, that's about as DE risked as it
- 23:23gets in terms of, you know, the regulatory process, right?
- 23:26And so that does change the game and it becomes a very different
- 23:31story that institutions, you know, if you have some that are
- 23:36more risk averse or even retail investors, you know, more risk
- 23:40averse, this, this de risks the story quite a bit.
- 23:43And so I think you'll see quite a bit of demand from perhaps
- 23:46folks that were sitting on the sideline.
- 23:49Let's see, company has to PR this surely.
- 23:51Yeah, there's going to be APR my guess.
- 23:56And I would hope that they just they they don't PR it this
- 23:58evening. I think they should PR it first
- 24:01thing tomorrow morning, hit the news wires where everybody's
- 24:05awake having their coffee and and, you know, people go to
- 24:09town, right? And I'll goes pick it up.
- 24:10I mean, whatever. I'll give you PR right now.
- 24:13People are unwinding at home. And, you know, it's just zealots
- 24:17like us that are doing AX space. So maybe they'll wait.
- 24:23Let's see. Your voice is super upbeat.
- 24:27Yeah, I'm, I'm pumped. I'm pumped, man.
- 24:29Like, this is this is nuts. So let me see.
- 24:34More questions here, but yeah, I like I said, this is an absolute
- 24:42emotional roller coaster to go from the agony of defeat, of
- 24:47losing your satellite, you know, celebrating, seeing folks I
- 24:52haven't seen in a long time meeting new Space Mob members,
- 24:55singing a bell. Scott, Michael Pollock, Chris
- 24:58Ivory. I even saw Dave Marshak getting
- 25:01on a bus and I took a picture of them and then he told me to, to
- 25:05contact him. I told him.
- 25:06And I was like, hey, I'm the guy that leaked your video, your,
- 25:11your due diligence video. And he laughed and, and you
- 25:14know, we, we had to chuckle about that.
- 25:15But yeah, to to go from meeting everybody and, and having a
- 25:22successful launch to losing our satellite unfortunately, and
- 25:24then kind of having to deal with all the negativity and, and the
- 25:28haters who we're trying to spend however they could, you know,
- 25:34this this past weekend's event as negative and that somehow AST
- 25:38are responsible for it going through that.
- 25:40And of course, seeing the stock rebound, you know, going from
- 25:43$70 low overnight to to closing at 81.
- 25:49And then, yeah, getting walking in today on Tuesday for full FCC
- 25:56approval. And by the way, like, like I
- 25:58mentioned before, this is a, a huge regulatory MO for the
- 26:01company. Like this is not something that
- 26:05perhaps startups or other companies are looking to enter
- 26:07the market. They're going to have to go
- 26:09through the same process. Now, is it going to take five
- 26:11years? Probably not.
- 26:14Because, because back when AST came up with this idea and they
- 26:18pushed forward the, the, they pushed this forward, the
- 26:22regulars were like, oh, is, are you, Are you sure?
- 26:24Like what is this? Is that, is that possible?
- 26:26Does it work? And which is why partially why
- 26:27it took so long. And so they've blazed a path for
- 26:31for others, right? Like I think maybe other
- 26:34companies who potentially want to enter this market, it might
- 26:37be a bit easier, but it's not going to, it's not something
- 26:39that you can like file and expect approval overnight.
- 26:43It's going to it's something that takes years, right?
- 26:46And so anybody who is not an industry contemplating to do
- 26:50this, that's part of the uphill battle that that they face,
- 26:54right? And so, but anyway, but yeah,
- 26:58this this is a tremendous event. I, I can't under score how
- 27:01important it is from the company in terms of, you know, its
- 27:07business prospects. And, and obviously, you know,
- 27:10other regulators around the world and M and OS too are going
- 27:13to look at this and say, oh, this is serious.
- 27:15Like we're this is a real player.
- 27:18The FCC is fully behind it. And we saw this, by the way,
- 27:22like the fact that the FCC was filing on behalf of the
- 27:25companies to the NTIA for spectrum coordination.
- 27:28I mean, little signs were there, right?
- 27:30I mean, nothing was ever fully guaranteed, but but yeah, here
- 27:35we are. And by the way, so maybe I'll
- 27:38shift topics a little bit just to just to talk about it.
- 27:42I did say Guten tag and in the beginning of this space, because
- 27:46we did see some like pretty interesting news.
- 27:49Bloomberg reported that Deutsche Telekom is potentially looking
- 27:53to reconsolidate and take, you know, basically buy out the
- 27:56minorities and bring back in T-Mobile, which would make it a
- 28:00fully foreign entity, which there's there's a lot of funny
- 28:04things about this because well, first the head of regulatory
- 28:08affairs are at SpaceX, Dave Goldman, this guy in trying to
- 28:15object to ASD speak mobile's consolation, which, as we can
- 28:18see, he failed because he tried to slow down and tried to, you
- 28:22know, throw throw sand in the gears and and stop this process.
- 28:25But guess what we got approval. So fuck that guy.
- 28:28Yes, I cost but anyway, but one of their arguments was that AST
- 28:36was working with foreign M and OS and that's I guess maybe
- 28:40somehow they weren't to be, they were not to be trusted.
- 28:43And then, you know, they talked about how perhaps, you know,
- 28:47the, the we had there all these like retail meme stock people
- 28:51who were trying to influence the process.
- 28:52I, I forget exactly. I got to pull up their, their
- 28:54filing. But what really stuck out to me
- 28:56when he when, when he and his, his group went after AST with
- 29:01some of these arguments, was that the AST oh, sorry, in, in
- 29:05the regulatory docket for SEC approval for full commercial
- 29:10access. You know, AST had a number of 4
- 29:14Nominos, Vodafone, Orang Rakuten, I mean, you know, quite
- 29:18a few number of their speed partners around the world
- 29:22commented on how directed device is a critical service and that
- 29:25they fully supported approval. And Starlink Pooh poohed that
- 29:29they were like, well, these guys who are foreign companies, they
- 29:32should not have any say and no in undue influence over what's
- 29:36going on in the US and that I think that was their angle.
- 29:39And then of course, it, it was funny because T-Mobile at that
- 29:43time and currently is, is, you know, through, through high
- 29:49votes is controlled by deutsche.com.
- 29:52Economically, I think deutsche.com owns like 45 or
- 29:56something just below 50%. But from a voting perspective,
- 29:58they, they fully control T-Mobile.
- 30:00So it was just funny that star, you know, SpaceX took this tact
- 30:05of trying to point out foreign influence when their biggest
- 30:08customer, their marquee anchor customer is a German company
- 30:11operating in the US. And if you talk to like some
- 30:14conservatives and, and I guess now some like ultra liberal or
- 30:18ultra left wing folks, like they all question why Deutsche
- 30:23Telecom owns, you know, all the spectrum of the US through
- 30:27T-Mobile. Like is that a national security
- 30:28risk? And you know all that, but it's
- 30:31just funny. And now that if Deutsche Telecom
- 30:34does acquire T-Mobile, then you've got a fully 100% German
- 30:38owned company that's going to be working with Starlink here in
- 30:41the US. And so those arguments, and this
- 30:43is, This is why you have to be super careful in what you argue
- 30:47and, and what you lay out in terms of lobbying efforts at the
- 30:50FCC, because you've got to be super clean in those in those
- 30:55arguments, because they can always come back and bite you.
- 30:58And right now we're about to see that.
- 30:59We're about to see the arguments that SpaceX laid out about
- 31:03foreign influence. Yeah, They're, they're, they're
- 31:07their anchor customer, their marquee customer T-Mobile T
- 31:11satellite powered by Starlink is going to be German owned.
- 31:16And so that's that's going to be, I mean, there's, there's
- 31:20that, that's hilarious to me. But more importantly, the CEO of
- 31:24Deutsche Telekom during Mobile World Congress, I think it was
- 31:28out in Barcelona, they did announce a small deal with
- 31:32Starlink to provide T, you know, Starlink service direct to sell.
- 31:37I mean, I think most of that deal was focused on fixed
- 31:40wireless. But then they did announce this
- 31:42direct to sell partnership with Deutsche Telekom, but that
- 31:48partnership wasn't going, is not supposed to kick in until 2028.
- 31:51And the reason why that is, is that the current generation of
- 31:54direct to sell satellites that Starlink has have an inability
- 31:59to beam down accurate cells on the ground and, and of course
- 32:04they have interference solutions too.
- 32:05And so Europe, which is, which obviously has small countries
- 32:10that have very complex borders, those current satellites do not
- 32:13work and cannot work in the European context.
- 32:16And so Deutsche Telekom announced this deal with
- 32:19Starlink, but then, you know, not until 2028.
- 32:21And of course in Starlink time 2028 probably means like 20-30.
- 32:26So they need the V2 satellites to actually work in Germany.
- 32:30And so when people were interviewing the CEO of George
- 32:32Telecom and said, hey, we saw you and you did this, this deal,
- 32:36he didn't, he didn't roll punches back.
- 32:38He said, well, you know, Alan's not a very popular guy in
- 32:41Europe. And so he needs us from a
- 32:44political perspective. But then also, you know, they've
- 32:47got the only, you know, service available today, which is true.
- 32:52However, if there are other providers that can that offer
- 32:56better service in Europe, we will, we will use other
- 32:59providers. And then he ends, he ended, you
- 33:01know, some of those quotes by saying, you know, we're not
- 33:03dumb. We know that we're basically,
- 33:05you know, dealing with a tiger when we're, you know, we're
- 33:08doing business with Elan because everyone knows that eventually
- 33:10Elan wants to get into the mobile phone business in terms
- 33:14of being an M&O, well, actually providing hardware and being an
- 33:17M&O. And so at the other day, like
- 33:20any M and OS that are working with Starlink, you're, you're
- 33:22basically, you've brought in the Trojan horse, you're giving them
- 33:25your customers and you're giving them free marketing, which is,
- 33:30you know, for Starlink, they are a direct to consumer business
- 33:33where they sell satellite terminals to your home to
- 33:37provide Internet. And then eventually they want to
- 33:39provide some type of mobile service to, to your directly
- 33:43right, cutting out M and OS. And they might be able to do
- 33:46that if they become a virtual network operator, you know, they
- 33:50enter in some type of partnership with, with a
- 33:52terrestrial provider to use their network and then, you
- 33:55know, they directly sell it to you.
- 33:57But anyway, I don't want to get to go down that rabbit hole, but
- 34:01I think it's important. And I, I pointed this out today
- 34:04that if deutsche.com takes over T-Mobile, I think T-Mobile
- 34:08working with Starlink, which that that relationship, the
- 34:14exclusivity ends this summer. I think that actually becomes a
- 34:18jump also the way. So I'm like T-Mobile could be
- 34:22T-Mobile slash storage telecom could be a relationship that AST
- 34:25could, could actually win. And it's crazy to say it.
- 34:31And I've, I've talked about this multiple times where I I never,
- 34:33I never thought Verizon would join AT&T and working with AC6
- 34:37mobile, but it, but it happened like I thought that was like not
- 34:40even a zero chance. There was like a negative
- 34:42chance, if that even makes sense.
- 34:44But, but now Deutsche Telecom, who clearly is, is wary of
- 34:49working with, with Starlink, You know, is there a scenario one
- 34:54day where they could work with AC space mobile?
- 34:57And obviously, like Verizon and AT&T are going to have a word
- 35:01and say and, and, and if that's possible, and if those two
- 35:04parties say no, we don't want to let them in on it, then, then
- 35:07that's the end of the story. Like it's not going to happen.
- 35:09But in a world where Elan is, is buying, you know, spectrum, mid
- 35:14band spectrum, which obviously is not good for terrestrial
- 35:17coverage, but it's great for data.
- 35:19You know, he's spending $23 billion.
- 35:21He's going to go into the AWS 3 auction to try to buy more.
- 35:25This guy is going to be, you know, he's going to be trying to
- 35:30build a competitive, you know, wireless service and that's got
- 35:36to give every M&O around the world some level of pause.
- 35:39And so I think in a scenario where T-Mobile were to go to
- 35:43Verizon AT&T and say, hey, look, man, let me work with you guys
- 35:48and not contribute some spectrum in the mid band and we can all
- 35:53use it together. And, and maybe, I don't know,
- 35:55maybe I'll just get less favorable economics.
- 35:57So I'm not contributing low band spectrum, but let me in.
- 36:00And then at Verizon AT&T say, no, we're not interested.
- 36:03We, we're going to take your subscribers.
- 36:05Then T-Mobile could say, well, if you don't let me in, then
- 36:09what I, what I'm going to do is I'm going to take us all to
- 36:11hell. I'm going to, I'm going to
- 36:13enable Starling to become a full-fledged wireless operator
- 36:18by letting them be an MVNO and, and basically lease terrestrial
- 36:23capacity for me. And just like Mint Mobile or you
- 36:26know, some of these, these basically marketing brands.
- 36:28But I'm going to let swirling do that.
- 36:29And yeah, I'm going to, I'm going to lose customers of them.
- 36:33And, but, but I'll make back some of the economics by
- 36:35obviously getting a wholesale agree with them, but then also
- 36:39taking, getting wholesale revenues from the subscribers
- 36:41they take from you AT&T and your Verizon.
- 36:44And in that scenario, I think that's where AT&T and Verizon
- 36:46could, and this is all high stakes, by the way, but that's
- 36:49that's scenario where AT&T and Verizon could say, well, you
- 36:51know what, let's let these guys in because we don't want, we
- 36:55don't want to have to deal with Starlink as a potential
- 36:57competitor on the mobile phone side, which obviously has
- 37:01implications too around fiber, 5G, home, which, you know,
- 37:06Starlink competes with all of them today.
- 37:08But that could be a scenario where they actually let them in.
- 37:12And so the news today, this all goes back to the news today.
- 37:16If George Telecom does try to merge, you know, bring back in
- 37:21T-Mobile, then I think that Starlink relationship becomes
- 37:25even more precarious. And so, yeah, I, I don't this,
- 37:30this, the market's not pricing, which by the way, like back in
- 37:36May of 2024 and everyday prior to that, the market did not
- 37:41price in any amount of potential that Verizon would, would step
- 37:46in and join AT&T and working with AST mobile And the stock,
- 37:51you know, was trading at what 5 and and then rallied to 39 over
- 37:56that summer. And that was primarily I, I
- 37:59would say, yeah, they primarily all of it was driven by the fact
- 38:02that AST went from owning 1/3 of the US market to owning 2/3 of
- 38:07the market and working with the two largest, most regible
- 38:10carriers. I mean, putting T-Mobile aside,
- 38:11right, T-Mobile is always been viewed as kind of the lower end,
- 38:15the lower end, but Maverick type of player.
- 38:18So just imagine like if T-Mobile joined AT&T and Verizon and AC
- 38:23locks up 100% in the US market, what would that do?
- 38:26What would that do in the stock price?
- 38:28And of course, like put that on top of the fact that we've got
- 38:30SCC approval. And yeah, I mean, I, I, I can't
- 38:35imagine, I, I, yeah. So I, I guess, yeah, you, you
- 38:40picked the number, it's probably too low, right.
- 38:43So anyway, I'm going to look at there's a lot of comments now
- 38:50let's see here. Yes, let's see Eddie Garcia,
- 38:57once FCC approves every other Ford agency is claimed to do so
- 39:00provides the top cover. That's correct.
- 39:02That's 100% correct. Let's see here, someone saying
- 39:09every, they're joking. Everything is pricing except
- 39:11when a SAT goes down, people think it's going to take 50%.
- 39:14Yeah, those people were absolutely wrong.
- 39:16By the way, this guy's back man. He, he had, he had gone through
- 39:20a rational analysis and came to the conclusion that stock would
- 39:23probably be down. And once everything kind of
- 39:25settled at 3 1/2% and he was absolutely right.
- 39:27Because like losing 1 satellite and the grand scheme of things,
- 39:29it pushes your timeline back a little bit.
- 39:31But when looking at a reasonable DCF valuation, it doesn't really
- 39:37take much off, right? And you, and by the way, like
- 39:39when you lose that one satellite, you lose some time if
- 39:42you can ramp. And, and I know it's the
- 39:45company, it's been taking a long time from their ramp production,
- 39:48but if they can catch up and, and exceed what they were, you
- 39:51know, what they were planning to do, then you can get that value
- 39:54back. But the key thing is in his
- 39:58post, he was saying based off of, you know, losing that one
- 40:00satellite, he was like, maybe you'll have like a 3 1/2% market
- 40:03reaction, ended up being 5. And then you saying maybe you'll
- 40:07drop, you know, down to 70. Was it 73 was announced?
- 40:12No 74 and we actually went to something 3 1/2 intraday
- 40:16yesterday. But but yeah, just like I've
- 40:19been kind of talking about for the last few weeks, like don't
- 40:22listen to these doom axers, like these people who are engaging,
- 40:25trying to get you to engage. And especially these these like
- 40:29snake oil salesman who we'll come in and just like shit all
- 40:33over AST and say, well, you're what you're invested in and it's
- 40:36it's got problems, but you should just go buy this other
- 40:38company, which is great. It's the best thing since I
- 40:40spread like, guys, come on, we can see through all that shit.
- 40:43We've we've like been through this for five years.
- 40:46Like you're trying to pitch some other company in in, you know,
- 40:50trying to prey on vulnerability of like the company going
- 40:52through a negative event. Come on, like at least try
- 40:57better do something else. Try a different boy.
- 40:59Like it's not going to work. But anyway, let's see.
- 41:05Someone's saying this approval helped to build a price floor.
- 41:08Yes, that's right. That's absolutely right.
- 41:10Having full regulatory approval is highly valuable.
- 41:13And as I mentioned before, even if AST decides to shut down
- 41:16business tomorrow, they could sell, someone could acquire AST
- 41:20in order to get the valuable SEC approvals for this specific, you
- 41:25know, consolation. Obviously they would modify it
- 41:262°, but there's a ton of value in that Let's see here someone
- 41:36saying can't believe after all these years, the highs and lows
- 41:39this week are insane yes, absolutely that's that's
- 41:41correct. It's been an A total emotional
- 41:45roller coaster. That's what makes investing fun,
- 41:48right? It's like the lows suck and you
- 41:50and you, you suffer and and, you know, grit your teeth and and,
- 41:56you know, do that hopefully with like other friends who are
- 41:58invested, but then that just makes the highs that much
- 42:01sweeter. And and today, yeah, I'm I'm on
- 42:04cloud 9. Let's see here is the cussing
- 42:12ANPA man a leading indicator? I don't I don't often cuss, but
- 42:17but I guess I I do sometimes, but yeah, yeah, someone's saying
- 42:22don't hear infant excited too often, usually calm, recently
- 42:25stressed out, but now happy. Yeah, no, I'm, I'm, I'm elated,
- 42:29man. This is, this is amazing,
- 42:31especially after again, like going through the loss of BB7,
- 42:36kind of going through that, that the seven, the seven stages of
- 42:40of, you know, whatever it is like cope and depression to have
- 42:44this is just just absolutely amazing.
- 42:48Anyway, I, I've I think my my kids soccer practice is about to
- 42:52end, so I might end the space here.
- 42:56I'm going to try to join stock weekly tonight, but but I'm not
- 42:59sure the schedule. So I know, I know we'll be well
- 43:02covered by middle space mod member, but maybe I'll try to
- 43:06fire space up later this evening if I'm not in stock weeks, stock
- 43:09talk weekly, but I'll try to join.
- 43:11But but yeah, everyone crack, crack open a doctor Pepper and
- 43:15memory Steve Larrison. Have a beer, get whatever
- 43:19favorite drink you want. You know, everyone just take a
- 43:24step back and take a breath and just enjoy this moment because
- 43:27this is this is huge. This is I, I can't emphasize how
- 43:32important this is, what this means for the company and the
- 43:34business. And yeah, I whether it was
- 43:39priced in, in terms of, you know, this, that actual stock
- 43:43price or mentally it doesn't matter.
- 43:46Like there's nothing quite like if, if you, if you're expected
- 43:49to win a championship and then you and, and you know, leading
- 43:53up to that, everyone expects it. But then when it actually
- 43:55happens, there's nothing quite like it, right?
- 43:57And so, so again, I think everybody should just, yeah,
- 44:00just just soak it in. I hope, hopefully the company
- 44:03doesn't PR to this evening, they wait for the morning to just
- 44:07drop it on, on everybody. I hope that's the case.
- 44:11But but yeah, there's going to be a lot of ink written about
- 44:13this and future regulatory approvals from different
- 44:17jurisdictions and, and a lot of commercial business being
- 44:19unlocked. This is great.
- 44:21So I'll end it there. And everyone, thanks for
- 44:24joining. We'll talk again this evening
- 44:27probably at 8:00 PM. And yeah, looking forward to
- 44:32everyone's takes and, and again, looking forward to some of the,
- 44:36the bears takes as well. I, I can't wait to see the, the,
- 44:40the mental gymnastics and, and the negative narrative that
- 44:43they're going to try to spend on this, which quite frankly, like
- 44:46there's nothing negative about this.
- 44:47This is just unbelievably positive.
- 44:49So take care everyone. Thanks for joining and
- 44:53congratulations man. They call us pumpers, call it a
- 45:09man. They were delusional, chasing a
- 45:12dream. But we got news for every short
- 45:15that's short. We are the space mine.
- 45:18We hold forward every crumb of day to every weekly meet.
- 45:22We know what's coming. We know the heat, the paid lie,
- 45:26and we see it clear. But we believe in what we're
- 45:30building here. Sea Booster, YouTube
- 45:34Billionaires Club. Sea Booster.
- 45:39We don't connect the unconnected.
- 45:45That's the plan. Satellite the soldiers with the
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- 46:02Abel's leading got the vision right.
- 46:04Golden Dawn coming. Missile defense fly.
- 46:07First responders always on the line.
- 46:10Government contracts. Watchers climb.
- 46:13Callers clueless callers code. But we know the truth.
- 46:17We know the result. Everyone wins when the space
- 46:21might win. That's where the future begins.
- 46:23Has deep boosters. Future billionaires clues.
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- 46:42the unconnected dance, the plan satellite.
- 46:46The soldiers will face my clan hasty booster YouTube
- 46:51billionaires club. We see what's true.
- 46:57While the first fade we breakthrough space coming.
- 47:02We'll need this FT booster future billionaires club FT
- 47:13booster we don't need your rubber.
- 47:16The unconnected plan satellites and soldiers will face my planet
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- 47:59Thanks for listening to the AST Space Mobile podcast.
- 48:02If you enjoyed this episode and you'd like to help support the
- 48:05podcast, please share it with others, post about it on social
- 48:08media, or leave a rating and review.
- 48:11To catch all the latest news about AST Space Mobile, make
- 48:15sure to subscribe. Thanks again and I'll see you
- 48:17next time. We're doing something very, very
- 48:23big and I think with this technology we can really affect
- 48:26billion lives. AFT Space globally is the only
- 48:29company that has proven technology to deliver cellular
- 48:33broadband connectivity directly from space to do everyday
- 48:37smartphone. People will just basically turn
- 48:39their phone and be seamless, regardless of where you are.
- 48:43We don't want the user even to know that it's connected by
- 48:45satellite. Our role is to bring this into
- 48:49reality, always in partnership with the MMO.
- 48:58Listen, Waffles.