Latest / AST SpaceMobile Podcast / Anpanman - Verizon and 100pct Connectivity - A Paradigm Shift

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Anpanman - Verizon and 100pct Connectivity - A Paradigm Shift · AST SpaceMobile Podcast

0:06
This is the AST Space Mobile podcast.
0:10
We just basically turn your phone and be seamless,
0:14
regardless of where you are. We don't want the user even to
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know that it's connected by satellite.
0:21
Listen, the opportunity that we have is very, very, very large.
0:27
Good morning everybody. What a crazy few weeks.
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If you can hear me, please give me a thumbs up.
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I'll wait to start. Or can someone send me a message
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and let me know that they can hear me?
0:45
Anyone OK? I see a thumbs up.
0:48
Yeah. What an exciting morning.
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This is something that was expected that was supposedly
0:56
priced into the market, and now we have it.
0:59
And this is on top of just a massive kind of beside of
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himself because what a long journey.
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Five years, five years is suffering.
1:13
And now we're seeing all the hard work, due diligence,
1:17
stress, sleepless nights, you know, everything just coming
1:21
together. And you know, as I talk about
1:25
how the puzzle pieces are clicking in, they truly are
1:28
clicking in. And so, yeah, this morning the
1:32
big piece of news, AFC Swiss Mobile signed their definitive
1:36
commercial agreement with Verizon.
1:38
For the folks who maybe perhaps are new to the story, last year
1:42
in the end of May 2024, the company did enter into a, you
1:48
know, a memorandum of understanding in addition to
1:51
with with Verizon, in addition to getting a strategic
1:56
investment, which was $65 million convert and then $35
2:01
million of commercial pre payments, which by the way, with
2:05
this definitive agreement, I think those some portion of
2:08
those commercial payments actually get released, if not
2:12
the whole thing. But but yeah, so when that
2:16
announcement happened last year, that's what caused the stock to
2:18
re rate, but it was a bit open-ended, meaning that while
2:21
we did get an investment and of course right on which was crazy.
2:26
Yeah, they, they decided to work handed hand with AT&T to support
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AC Space Mobile. They both contributed their 850
2:34
megahertz spectrum, which as we all know terrestrial spectrum
2:37
is, is highly valuable and it's their scarce asset.
2:41
It's the lifeblood of the carriers.
2:43
Contributing that and in a partnership to your biggest
2:47
rival is not a trivial thing, but but yeah, that happened last
2:52
year. And so AC for intensive purposes
2:55
locked up 60, you know, 2 thirds, 66 percent, 70% of the
3:00
the most popular wireless market in the world by now having AT&T,
3:05
which signed a current commercial defender agreement
3:08
and then of course Verizon, which now formalizes that
3:11
agreement. And I think it's important to
3:14
under score what this means and which I'll talk about in a
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little bit. But he's to say, given the stock
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price reaction today, clearly, you know, to to the extent there
3:27
was expectation that this was coming, but it was not priced
3:30
in. And I'll explain why what that
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means. You know how this been
3:35
announced, call it at in fall of last year.
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It would mean something very different to what it means now.
3:42
And that's why it truly wasn't priced in.
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But someone in in a chat that I'm in came up with this this
3:49
term, which I think was good. Is that the not the invisible
3:53
hand, but the pimp hand of the market just slapped all of our
3:57
collective faces this morning. And that includes long
4:00
investors. It includes short sellers.
4:03
It includes all the fudsters, dim spacebar and his his ilk,
4:09
all the legacy guys. I remember and and somebody who
4:13
runs the website. You know that that covers what
4:17
how all the terrible takes of Tim Tim Farrar.
4:20
But whoever runs that website that that that preserves his
4:26
tweet for tweets for posterity. What was it?
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I guess it was like a few weeks ago he was claiming that it's
4:31
like it was likely that Verizon was going to leave AST space
4:34
monger, go to Starlink. What a fucking tool.
4:37
What an idiot. That guy.
4:41
He's basically paid by legacy. The legacy satellite guys, also
4:45
global star, I mean, you name it.
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And so he'll come up because he's paid.
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He'll come up with every reason under the sun to create a point
4:54
of view, which of course ends up, you know, on the one hand
4:57
is, is to create FUD and and to speak negatively about AC space
5:00
mobile. But then, you know, I guess
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he's, he's kind of like a street Walker.
5:04
Like he sells, he sells his services and then he doesn't
5:06
mind being completely wrong. So it'll be interesting to see,
5:10
not that I care, but it'll be interesting to see, you know,
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what he, how he tries to spin this today because, yeah, this
5:17
is, there is no spin. Like there's a definite
5:20
commercial agreement with with ASD Space Mobile.
5:23
But yeah, I'm going to go through a few things here.
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First, I, I think, you know, kudos to Scott Wisniewski, the
5:32
president and chief strategy officer, ASD Space Mobile.
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He's just been executing master strokes in terms of strategy.
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And so it was what, 2 weeks ago? I mean, he was giving everybody
5:47
fair warning, whether you were long or short that this was
5:50
coming. And, you know, to be fair, like
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he had hinted Verizon was coming a number, you know, that it was
5:56
close, but obviously it took longer than expected.
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But you know, his his little conviction and talking about how
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there were two or a handful of agreements that were coming
6:07
soon. Yeah, you get people fair
6:10
warning and and a lot of us in the space mob had put together
6:12
that Verizon was coming. That's why I had like tweeted
6:15
all these hints like, you know, Verizon soon and and then of
6:19
course, you know, we, we got the news that Bell Canada announces
6:24
Castle testing. And by the way, like I'll
6:27
reiterate the fact that Bell Canada announced successful
6:31
testing results from the summer for them to do it now means
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like, you know, I would assume that Bell Canada is going to
6:38
announce a definitive commercial agreement with ASD space, but
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we'll probably within the next few weeks.
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So that's another thing to accord to we we talked about
6:45
like Catalyst season being upon us.
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It truly is. I mean, we've got FM one, FM 2
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launching in the next two to three months in the multi launch
6:54
campaign going off as well. I think, you know, if we're
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fingers crossed we'll have 33 launches before the end of the
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year. As I mentioned before, we just
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had successful testing with Bell Canada.
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And by the way, like Bell Canada, you know, there are
7:10
strategic investor they were there early.
7:12
And so again, I I expect that defended commercial agreement to
7:16
drop anytime now. And the other thing of course we
7:19
saw and I joked about it. The Prime Minister of Canada was
7:22
here with Trump and they were meeting Trump made some comments
7:26
about Golden Dome about how it's going to cover Canada.
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Guess who covers Canada as well ASD space mobile.
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Guess who has, and this is really important.
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Guess who has Legato Alden spectrum that covers Canada ASD
7:40
space mobile. Guess who doesn't have satellite
7:43
spectrum covering Canada for truly 100% coverage?
7:46
Starlog Starlink only bought Echostars spectrum here in the
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US. They're going to have to pursue
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spectrum rights in Canada, but we happen to have it already.
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So if if Trump is pushing golden Dome coverage over Canada,
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there's one specific player that can provide that coverage.
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And as we all know, we all have a very high level conviction
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that the company and including Scott, who's been more vocal
8:13
about it, I think the company is going to get Golden Dome.
8:18
What does that happen? You know, it's up for debate,
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but like I I've kind of changed the how I express these events
8:26
on these these spaces is that I think we should all kind of in
8:31
your collective minds as you kind of go through the
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day-to-day machinations of the market and and re rethink, you
8:37
know re underwrite your investment ASTC mobile.
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I think the the keyword to think about is inevitability, right,
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Because I think these things, whether it's the bug Canada
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defender agreement, whether it's defense use cases, what what
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100% connectivity means this is this stuff is all inevitable.
8:57
Like AST, yeah, there's going to be because it's space, there's
9:01
going to be delays. It's going to take longer than
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you expect. The company, the engineering
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mindset is to get things right the first time and every time.
9:10
So they're not going to they're not going to ship the satellite
9:12
and put it out into space without absolutely without
9:14
making absolutely sure that they've accounted for any
9:17
possible scenario and that you know you've got forward and see
9:21
that you know the the satellite has every chance to succeed,
9:25
right. And so when you're under that
9:27
engineering mindset, sometimes things take longer than
9:29
expected. But given the type of service
9:32
we're about to deploy and how critical it will be for all
9:36
these other industries, which I'm going to talk about, and
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that's what got me and Kook last night totally hopped up, which
9:43
is why I tweeted, you know, it past midnight that our
9:47
discussion basically, yeah, informed me that we're not
9:51
bullish enough. I truly believe that.
9:54
So anyway, yeah, this, as I mentioned before, there there
10:01
was this narrative out there from short sellers, skeptics,
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you know, in industry consultants or clueless that,
10:10
you know, Verizon was somehow going to use that switch.
10:13
And I, you know, in, in all honesty like that, that was a
10:16
true potential risk because there was no definitive
10:20
commercial agreement that was signed just yet.
10:22
And obviously Verizon was already half pregnant.
10:25
They'd already contributed their spectrum.
10:28
They've already gone through the SEC review process with us and
10:30
continue to be very supportive. They also made overall $100
10:35
million investment, part of that commercial prepayments part of
10:38
it in the credible debt, which then became equity.
10:40
Now they're a shareholder. But you know, never say never.
10:43
Like there's always a risk. You know, if you in any
10:48
transaction, it's not done until it's done.
10:50
And anybody who's worked on M and A transactions knows that at
10:55
the 11th hour they can fall apart.
10:58
And sometimes that happens for a reason, right?
11:00
Like people, people want to get better economics or there's
11:06
there's personality issues or any number of things or maybe
11:08
competitor comes in and and tops your bid.
11:10
And so, but you know, they got it over the finish line.
11:14
That's great. And so I think it'll be
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interesting to see, you know, how the press and media and
11:20
everybody reacts to this because the, you know, Echostar Starlink
11:27
start and by the way, like it is totally like 100% a great
11:34
signal. And I think space mob gets this
11:36
right whenever Starlink starts putting out PR about like, Oh my
11:41
God, we did the first video call, which was, by the way,
11:43
absolute bullshit. They, they never did the first
11:45
video call. And, and when they did that
11:47
call, they had two engineers standing next to each other,
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next to their building, their office.
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And I, I, I forget where it was, maybe it was in Washington or
11:55
something. That's not a true test.
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Like that's within Wi-Fi coverage.
11:59
Those two engineers are sitting next to each other.
12:01
They could be actually being they, they could literally be
12:04
routed through the same exact satellite.
12:06
And that doesn't really demonstrate anything like
12:09
anybody can do that link actually does that.
12:10
They they, they do a video call between 2:00 between the exact
12:15
same satellite. Satellite connects to both
12:17
phones. The true task is like if you are
12:20
in a remote area that has no coverage and you do a video call
12:24
to a satellite, which then beams it down to the operators network
12:29
and then connects that to someone further away, you know,
12:32
much further away. So, but anyway, my point there
12:35
is that, well, first that test that Starlink touted is absolute
12:39
bullshit. But then they're putting that
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aside whenever Starlink, which over the last, gosh, I don't
12:46
know, two weeks, they have just been pounding PR, going to the
12:50
press and like tweeting stuff like, oh, we're doing all these
12:53
things and we're going to release these like dumb down
12:55
apps that can deliver services, you know, basically with
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hundreds of kilobytes of data throughput, which is great.
13:03
And and that's a great service by the way.
13:05
Like in the in the absence of no service at all, people will, I
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mean, even if it's 100 kilobytes a second or half a half a MB
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megabit per second, like that's a good service.
13:17
And even for me, like if I'm using my Bloomberg on my phone,
13:21
I just need to see prices moving and do so.
13:25
So that's a good service, but it's not broadband and that's
13:27
what we're doing. But my point is that when
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Verizon starts beating or sorry, when Starling starts beating the
13:34
drum and starts putting PR, it's almost as like as if, you know,
13:39
the sun rises, It's it's it's in anticipation and you know that
13:43
ACCS mobile has something coming.
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The reason why I say that is, you know, the industry is pretty
13:49
small and I'm sure you know, AC, for example, one way that
13:53
Starling can get a, a beat on what's happening is that
13:57
obviously SpaceX launches our satellite.
13:59
So they know, they probably know, you know, when launches
14:02
are happening, they probably hear from different competitors.
14:05
I'm sure Starling was talking to Verizon too.
14:06
Like over the last several months, they were begging like,
14:10
hey, sign an agreement with us, do a deal with us.
14:14
And maybe that's why it took some time with AST, right?
14:17
Like maybe the definitive personal create took time
14:20
because Verizon's like, oh, you know what, let's see what
14:21
Sterling could do. Well, guess what?
14:23
They signed it with us. They re underwrote the, the
14:25
transaction, the relationship. And so, and This is why
14:31
everything isn't priced in. And So what does that mean?
14:36
So you'll have and well, the market for in general over the
14:40
long term is, is pretty smart. Obviously it gets things wrong
14:45
many times. Like anybody who thinks the
14:47
market is efficient or fully efficient is kidding themselves,
14:50
right? Like the market was fully
14:52
efficient, the 2008 financial crisis would have ever happened,
14:55
right? But that was when the system was
14:59
over leveraged. And, you know, you had a cascade
15:01
of events and obviously we were in a bubble.
15:05
And yeah, if the market's efficient, why do we have
15:06
bubbles? But anyway, I won't go down that
15:09
rabbit hole, but the market for the most part is efficient to
15:15
the extent players are rational and you know, capital is
15:18
properly allocated. But the reason why this was not
15:21
pierced and now the expectation is that Verizon was eventually
15:24
going to have a definitive agreement with AC space mobile
15:27
and people. People were expecting it, but
15:30
they were still biting their nails right.
15:32
And you had Fudster saying oh what if it doesn't happen or
15:35
where to start? Link signs Verizon.
15:37
So there is a high degree amount of uncertainty and with every
15:40
passing a month that degree of uncertainty increased, right?
15:44
So we were, what was it a year? So last year, last year they
15:49
signed at the end of May. So you were basically, you know,
15:52
a year and four months from that initial partnership to get to
15:56
this defend agreement. So every passive month, the
15:58
probability of that agreement kind of lay edge down a little
16:02
bit, right. But more importantly, and yeah,
16:05
it was a bummer it took so long. But as they say, good things
16:08
come to those who wait and especially by waiting to sign
16:13
this different agreement, it tells us a lot of information
16:16
that the market now has to reassess.
16:19
And what do I mean by that? Well, So what has happened since
16:24
June of last year? We've got the block when
16:27
Bluebirds that are flying around Earth and there's been, you
16:31
know, testing that's happened with that.
16:32
You've got obviously the the administration, US has changed,
16:37
the FCC has changed. They've become much more
16:39
supportive of the service. So what was viewed as kind of
16:42
something interesting and great now I mean, was it the FCC
16:48
Brandon Carr just announced that October is space month and and
16:52
direct to device connectivity and broadband connectivity in
16:55
general from space is become the tip of the spear for a Med
16:59
American competitive leadership globally right.
17:03
Like we obviously China is developing a, a star like knock
17:07
off. They are also doing a knock off
17:10
for a directive device, which, you know, there some of us have
17:13
seen the, the satellite that looks very similar to our Block
17:15
1 satellites. And, and Chinese going to get
17:18
there. They're going to make a
17:19
competing service. However, due to sovereignty
17:23
issues and, and the like, you know, you're going to have this
17:26
bifurcation of the market where it can be US and US friendly
17:30
countries and allies will be using Starlink and HD-6 mobile
17:34
and you'll have everyone else, meaning it'll be China, people
17:38
in Russia maybe will be using the service.
17:40
Who else is there? Iran, W Korea, maybe some
17:43
African countries. Yeah, there's going to be this
17:46
other group of, of folks who use the Chinese service and they're
17:50
going to be comfortable with that.
17:51
Like, you know, if you're, if your country using Huawei
17:54
technology, maybe you're OK with, with the satellite using
17:59
their satellite services. There's some, there's some
18:02
problems with that. But then, you know, I'm not
18:03
going to that's a totally different Twitter space.
18:08
But yeah, the the important thing is that the administration
18:10
has changed. You know, now we're ramping up
18:13
production, you know, we've expanded space, but a lot of
18:16
things have changed over those that you know, what is that?
18:20
12716 months, right. So for the defendant agreement
18:26
to be announced now the reason why the market has to re
18:29
underwrite this for the reason why it was not, you know, was
18:31
not priced in, is that there the probability of it not happening
18:35
had gone up over the over time, but now obviously it's happened.
18:37
So the stock is is, you know, re rating for that.
18:41
But most importantly, what this is today is a validation of
18:46
where we are. So what does that mean?
18:48
Like, but yeah, people are pissing their pants about launch
18:51
being delayed. You know, we should have got our
18:54
first satellite, the first lot to satellite up back in what
18:58
April or that was the original target, which by the way, like
19:01
I've talked about this before, space companies, you, you put
19:03
forward aggressive targets because everybody, your
19:06
employees, your suppliers, your service providers, everybody
19:10
works towards that target with the understanding that it's
19:13
aggressive and it it may slip. And then if it slips by a month
19:18
or two, then great. But if you put out targets that
19:20
are that are, you know, I would say more conservative or
19:24
realistic than than often times things will slip beyond that
19:28
one. And so you, you generally
19:31
speaking, you want to put forward more aggressive but
19:34
realistic targets. That's just kind of how the way
19:37
the world works in space. But yeah, what this means, as I
19:41
was saying before, is that launch being delayed production
19:45
and getting ramped up, you know, more.
19:47
Most importantly, Verizon, you know, they Scott has talked
19:50
about working with like 100 different folks at Verizon, you
19:52
know, network integration testing operation, you know,
19:57
doing all the back end stuff. But but most importantly to me,
20:01
testing with, you know, on the Verizon network and their
20:04
spectrum and their phones like that's all happened to you.
20:08
Verizon also is part of due diligence is probably looked at
20:12
ASTS funding plans their their ramp of of launching service,
20:17
like all these different things, right.
20:20
And then and so over that the past 16 months, a lot has
20:23
changed and the information that.
20:26
The the decision point of what Verizon made at the end of May
20:30
was very, to be quite candid was like pretty uncertain versus the
20:34
decision they're making today. They have a ton more information
20:37
and a lot of the, for example, you know, some of the AST space
20:41
mobile investors criticisms and also the fudsters of like, oh,
20:45
these are things are delayed and there must be problems or
20:47
whatever. Verizon's looked over all that
20:50
stuff and I guarantee you they've been talking to Starling
20:52
too. And all through that 16 months
20:55
they've decided today we're going to ASTC, we're signing
20:59
this contract and that's powerful that that's the mark.
21:04
No, it's not priced in. They just re underwrote this
21:07
investment and so did so do all of us and so do institutional
21:12
investors and so do short sellers and show so does the
21:15
industry by signing in definitive curve for agreement.
21:17
Today they looked at everything that has happened up to this
21:20
point and they look at the future plans and the multi
21:23
launch campaign and initial commercial service and they're
21:27
they're voting with their feet. They're saying, all right, we're
21:29
signing this agreement today. That is powerful.
21:34
We're not we're not signing with Starlink.
21:35
We're not signing with some of these like legacy players like
21:39
this is it? This is where we're making our
21:41
bed. We've looked at everything and
21:43
you know, we're not we're not like some fly by night shop, you
21:47
know, mobile virtual network operator like Boost Mobile or
21:51
something like no, we're Verizon.
21:53
We're like the we're we're the most profitable carrier in the
21:57
United States, you know, along with AT&T and we're making our
22:02
bet and this is our bet and based off of everything we've
22:04
seen and the future potential, this is where we want to go.
22:08
It's ASD space mobile. And so that has ripple effects,
22:12
right? Like you're going to have all
22:16
the industry press, you know, Verizon's going to be talking.
22:18
But then, you know, just as importantly, regulators like the
22:21
FCCS can be like, oh, OK, so now there's two definitive
22:25
commercial readings with Verizon.
22:26
ATTI know Verizon was like working with you guys, but but
22:29
they're they're serious. So, yeah.
22:30
And by the way, like the our application for US commercial
22:34
access just got the comment period closed, I think it was
22:38
yesterday. And so commercial access, I
22:40
mean, that's going to be a huge event, right?
22:42
Like and that's, that's going to be coming.
22:44
We talked about catalysting. So that's going to be the next
22:46
few weeks, right, like 2 weeks, maybe a month or two.
22:51
But when we get granted US commercial access, that is a
22:54
total game changer, right? Because then you can actually
22:57
start service and that's a hard thing to do.
23:01
I mean, for HD-6 mobile, I think our initial application for
23:05
commercial access was like in 2018, nineteen, I forget.
23:09
But you know, I, I think it's important like when when people
23:12
talk about, yeah, no problem, we're going to get into this
23:14
market too. It's like that's a long, arduous
23:17
process to do it. And obviously the the FCC is
23:20
trying to be more accommodative to helping foster innovation and
23:25
they want to speed up these regulatory processes.
23:27
But you know, you've got to prove that you can do this.
23:31
You've got to have partners, you got to have the technology, you
23:34
got to have spectrum, whether you own that or you partner to,
23:38
to utilize somebody else's. It's a very long process, right?
23:41
And then not only just threshold, I mean, spectrum to
23:44
feeder things or sorry to the device.
23:47
You also need to get spectrum to, you know, from your ground
23:50
stations to the satellite. Like it's a it's a big deal.
23:52
It takes a long time, but anyway, but that's, that's one
23:55
of the big modes. And I think the most important
23:57
point is that Verizon by signing this agreement today is
24:02
basically given at least, you know, this is how I feel they
24:06
validated everything up to this point.
24:08
And so there's always going to be like some Maggie questions in
24:12
anybody's mind of, you know, does the technology scale is it,
24:16
is it is it going to do well if there's like a lot of users,
24:19
well, well, guess what they've been testing with these five
24:23
Block 1 satellites with Verizon and they like what they see.
24:29
And so I highly, highly doubt that Verizon will be science
24:34
agreement if there was any question that the service is not
24:38
going to be successful. And credit to Verizon, like
24:42
they, they drag their feet, they wanted.
24:44
It's just like when you are, you know, you have to do something
24:50
like you buy a house or, or you know, you make some big
24:53
financial purchase and commitment, but it's like a
24:57
really big one and you're, you know, it's not, you know, you
24:59
have to do it, but it's tough. You drag your feet, you wait,
25:03
you wait until the last minute because you want to have more
25:05
information. You want like, you know, if
25:08
you're, if you're buying a house, you want to have the
25:11
inspections, you want to get an engineer in there, you want to
25:13
drag your feet. Maybe rates go down.
25:16
So you want, you don't want to close yet.
25:18
And then in the meantime, maybe you're like looking at other
25:19
houses too. And then but you drag your feet
25:23
because you want absolute perfect information before
25:26
closing deal. And that's what Verizon did.
25:27
They drag, that's my perspective.
25:29
They drag their feet, they waited till the last minute and
25:32
of course last minute meaning like we're on the cusp of
25:34
commercial service. So it's like shit or get off the
25:36
pot and they they're doing it. And by doing that, you know,
25:42
Verizon has done us a favor by validating up to this point.
25:49
So that's super powerful. I think I think anybody who kind
25:52
of tries to poo poo that this Verizon definitive agreement
25:55
should have been priced in or that it doesn't really mean
25:57
much, they're kind of are missing, they're missing the
26:00
plot. They're missing the whole point.
26:02
Like it's going over the head. And that's what.
26:06
And by the way, like we saw this back in the end of May last year
26:10
when Verizon announced a deal with AST space Mobile, the
26:16
market had to completely shift its its thinking and it was a
26:19
true validation, right? Like based off of everything up
26:22
to that point, Verizon was like, yeah, we we we evaluated
26:25
Starlink and we want to go with AST.
26:27
And in May if at the end of May 2024 and the stock completely
26:33
rebated, went from was it like 13 bucks or sorry, not 13 bucks.
26:37
It was like in the 8 or nines. And then it re rated along with,
26:41
of course, other news, but it went to like a peak of 39
26:43
several to 26. And that's because you know,
26:49
they're for 18 T to work. They see they, you know, to make
26:52
an investment to have a commercial agreement.
26:55
You know, the company will work. Company was working with AT&T
26:57
back in back I guess long back as 2018.
27:03
And so you know that that was a great yeah great validation.
27:09
But for a another party to come in later to do all the due
27:13
diligence and evaluate all the solutions out there, but then
27:16
decide and you know, also decide with to work with a a big rival
27:20
for rising to do that back in May of 2034, that was a big
27:24
validation point. And so today we have a slumber
27:27
tug event where this definitive commercial agreement is a huge
27:30
validation of what the company has done today.
27:34
As I mentioned before, Bell Canada like that, that definite
27:38
agreement is coming soon. You know, if it's going to
27:40
happen, you know, Scott, please give us a break.
27:43
You know, you can do it like, you know, in a few days.
27:46
I'd be fine with that. You don't have to, you know,
27:48
stop it now. Give the market like some some
27:51
time to read. But I think an important thing
27:55
as well is that Scott has become super savvy and and perhaps it's
28:00
like through the help of retail, the space mob, but he's become
28:03
super savvy in terms of PR. And I know people have
28:07
criticized the company from time to time, but when they do PR,
28:10
they slap the shit out of people, right?
28:12
Like it wasn't it. It's not lost on me and nor
28:16
should it be to any of you, and especially to, you know,
28:19
institutions and short sellers, like they dropped the ATM
28:22
yesterday full well knowing that Verizon was coming today, right?
28:27
And so they put the A-Team in place.
28:30
And I mentioned this before in my talk yesterday, they're
28:32
they're pretty in place for a reason.
28:34
Like there, there's opportunities for them.
28:36
And you know, people will say, well, the first constellation is
28:40
fully funded. Yeah, it's fully funded.
28:41
But there's other stuff to do. There's other stuff to do.
28:44
Like we whether it was Legato in January, we we bought that
28:49
spectrum, which in hindsight, of course, everyone would question.
28:52
But then on Echoes, Sterling did Echo Star was like the smartest
28:55
thing, the best thing since sliced bread, right?
28:58
Which it is. And then now Fast forward to
29:01
stay. Yeah, we're fully funded for the
29:03
first consolation, but we also have other shit to do.
29:06
Like if you get Golden Dome or if you get any other defense
29:11
awards, you're going to have to pre fund some of that cap backs.
29:13
I mean, there's a reason why we got manufacturing space in
29:18
Homestead, FL. Like that's for defense.
29:20
It's not, it's not for commercial stuff.
29:22
And so that takes money. And so if, if the government
29:26
would come to you tomorrow and say, hey, we're going to award
29:28
you a billion dollar contract, but you're going to have to plow
29:31
in like $100 million, your own money.
29:32
Are you going to say no, of course not.
29:34
You're going to you're going to raise money and you're going to
29:36
go do it. And so I think, you know, it's
29:40
like that whole thing was lost on people.
29:45
It's like people are just whining about, Oh my God, the
29:47
company puts the ATM in place. By the way, like every time the
29:49
company has recently put in an ATM, the stock is like rallied
29:53
tremendously because people, people know like at this point
29:57
the company is a great steward of capital.
29:59
Like they're, they're doing these things for a very specific
30:02
reason and they're looking at highly accretive opportunities.
30:05
So like, who knows, tomorrow they may, you know, they may
30:07
announce the acquisition of some S band spectrum rights globally,
30:13
you know, and so there's, there's there's a whole host of
30:17
things whether, you know, they might need to ramp up satellite
30:21
production from, you know, Scott has already talked about like if
30:24
we get some military stuff, we might have to ramp up production
30:27
from 6 to 12 satellites a month. Like he's telling us now that is
30:33
in the realm of possibility. He like told the market and the
30:37
market kind of just shrugged it off.
30:38
But for people who are paying attention, like that's a fucking
30:42
big deal. That's crazy.
30:43
Oh, you need to like build another constellation for the,
30:45
for the government potentially. And so you, you have to put AATM
30:49
in place just in case. Yeah, take my money.
30:52
And so it was funny because like Kook has talked about this
30:56
where, you know, when you get to a point where the where the
31:01
narrative had changed and the market understands why you need
31:05
capital and it's for highly creative opportunities.
31:09
When you do a fundraise. And by the way, the company does
31:13
not do is not doing market offerings anymore.
31:15
They're they're going to do this through AT Ms. which are very
31:17
efficient. They've done the right way and
31:19
if the if supported by the market, you know, you have like
31:23
little slippage and you can take advantage of when the stock
31:26
price is in your favor, when the market understands that and
31:32
you're going to be a good steward of capital and a good
31:34
fiduciary, then they reward you. They reward you for it.
31:37
It's like why some companies when they do following offerings
31:40
or converts, you know, stock may trade down a few percent for the
31:45
next day. You see it up.
31:46
And so yesterday we saw that shift, that paradigm shift where
31:51
the company announced an ATM. You know, the market shit it's
31:55
pants through degree. And and of course, I'm sure
31:57
short short sellers, you can always count on those clowns.
32:01
They shorted the stock down to 6% in the hole in the morning.
32:06
And you had our our favorite short seller.
32:10
He's kind of like a Keystone copper.
32:12
Just some of these guys. I mean, they truly are the
32:15
bottom signal. God bless them.
32:17
I hope they keep going because I've made a ton of money by just
32:20
following them. And by the way, like I, I, I do
32:22
think Pivotal Capital and Adata Capital, they're definitely
32:27
worth following. I should actually follow them
32:30
today. But they truly are the bottom
32:33
signal When they get, when they get very confident and they say
32:37
it's over and they tweet like FUD, that's the time when you
32:41
want to, if you're trading any part of your position, that's
32:43
when you want to get longer at exposure because they just never
32:47
miss. They're so good.
32:49
And so, you know, kudos to them. I I, I believe like Pivot
32:52
Capital, Pivotal Capital, I think he probably works in a pod
32:55
shop. But if I was like I said, if I
32:57
was his boss, I would pay him like 3X whatever he makes.
33:00
I would just tell him, you know, just keep giving me your best
33:03
ideas. And then I would have a separate
33:05
book so that I wouldn't, you know, hurt his feelings.
33:07
But I would just take the other side of everything gaming
33:10
because I mean, he's just an absolute money maker.
33:13
But anyway, I digress a little bit.
33:15
But yeah, so I think, yeah, I just thinking when I talk about
33:23
this paradigm shift, actually where was I?
33:29
That engine kind of threw me off.
33:33
But yeah, so I think like the fact that the company can raise
33:37
capital and people view that, know that they're going to do
33:41
highly accretive things with that.
33:43
That changes things quite a bit, right.
33:45
You go from a what is a pre revenue startup, which by the
33:50
way like we're going to start, we're generating material
33:52
revenues this quarter and it's going to continue to ramp.
33:55
But when we do fundraising like that's going to be, I think
33:59
people are going to be that positively.
34:00
Now obviously there's like a bunch of retail investors among
34:04
the mob. We were like, oh, the solution
34:05
is bad, but no, it's not. It's people sometimes forget
34:10
like growth companies, the capital to grow and pursue
34:14
opportunities until they get to a point profitability where they
34:17
become self funding. We're not there yet, but we're
34:19
getting everyday we're getting closer and closer.
34:22
And then when you do have inorganic opportunities, meaning
34:25
you know something beyond what's in front of your face, but you
34:28
know, you, you need to whether it's M&A or there's like a
34:31
completely new business that you have to pursue.
34:33
Sometimes you need to raise capital as an accelerant to go
34:36
pursue them, right. And so that's, that's kind of
34:38
what we're seeing. But the other thing I wanted to
34:42
talk about, so this is what got me bulled up last night when I
34:45
was talking with Kook. You know, we were, I guess a few
34:49
things we were talking about. One was when, where, where can
34:52
the stock price go? This kind of, I see reform
34:54
trader down there. His, his analysis kind of got us
34:57
thinking about it. And, and I think anybody who
35:00
throws around like the potential of $500 stock price, it, it kind
35:04
of, it's hard to comprehend, but when you think about where the
35:07
market is now, and I'll be the first person to say like, we're
35:10
in a pretty frothy environment, but the question is, what part
35:15
of the cycle are we in, right? So we're in this mode now where
35:19
more rate cuts are coming because of what's going on in
35:22
Japan. And we're basically in zerk
35:23
again, like 0 interest rate environment or heading that way
35:26
soon. And so my guess is like, you
35:29
know, are we in the third inning?
35:30
Are we in the 4th inning? But we probably have another, I
35:33
don't know, 6 to 12 months. And there's going to be like
35:35
gyrations along the way in corrections.
35:37
But this is a very accommodative environment.
35:41
And then especially given what the US government is doing.
35:45
And I'll talk about how this is how this plays into space.
35:48
But yeah, I mean, it, it's it's you have a president who watches
35:53
the stock market every day and is highly supportive.
35:55
And whenever the market sells off, he calls people panic.
35:58
And and then when things go well, he like takes a victory
36:00
lap. So clearly they're focused on
36:02
managing the market in addition to, you know, the economy and
36:05
other things. And now what does that mean long
36:07
term? It's probably not a good thing
36:09
for the for for the economy to get to, you know, to get
36:16
basically juiced up. But I think it's important to
36:19
recognize the game and to understand it and to play it
36:23
properly. And what I mean by that is
36:25
during this period of time, things are going to work and
36:29
things that are speculative are going to work.
36:31
And so do you, you know, you can take one side of the view of,
36:35
well, I'm not going to participate because I think it's
36:37
all everything's kind of overvalued or, and sit on hands,
36:41
or you can actually look at trends and situations and, and
36:46
take advantage of it, right. And I think, and how does this
36:49
relate to ACCS mobile? I I think the opportunity for
36:52
the stock price to get to several 100 to, you know, 1000
36:56
like that's all in the realm of possibility, but it's going to
36:59
take a long time. At least in a normal, a normal
37:03
distribution, like a normal market.
37:04
It would take time of execution of rolling out service of
37:09
getting, you know, the service getting to a level where you
37:12
you've got like a number of subscribers, maybe hundreds to
37:15
then billions of revenue to eventually get to some of these
37:18
prices. But then when you're in a market
37:21
that is basically pulling forward expectations and
37:25
discounting that crazy things can happen, right.
37:28
So what I mean by that is what was it?
37:32
I guess it was like a year ago, two years ago, like we all knew
37:34
about AI and, and there were some people who were early in
37:37
terms of touting the benefits and how it's going to be
37:40
disruptive. But the second order and 3rd
37:43
order effects, I don't think people fully understood, right?
37:46
And so the ones that did started buying, you know, I remember
37:49
when some of the Bitcoin miners started, you know, that first
37:53
deal, I think it was like core Weaver, somebody did a deal for
37:57
an AI to to host AI infrastructure, which, you know,
38:01
I did some cursory research and I was like, Oh yeah, these these
38:04
like crypto mining companies are probably going to be great
38:09
hosts, you know, great providers of basically AI data centers,
38:13
right. And so, but I never acted on it
38:17
because I was so busy with the AST and of course things were
38:19
going well. It just didn't really focus.
38:21
And by the way, like there's a lot of things that are going on.
38:24
It's OK to stay focused on what you do.
38:26
And, and when you realize like there's a lot of opportunities,
38:29
sometimes when there's so much noise, you can't focus, you end
38:32
up missing or not doing things well and everything.
38:34
Like you just really have to stay focused on the thing that
38:37
you know, well, but if you had kind of made that connection and
38:43
it's like, OK, well, there's going to be a tremendous demand
38:45
for AI and these these processors are going to need
38:47
power. Then I should go buy like these
38:50
crazy concepts of next generation modular nuclear
38:54
companies that are out 1015 years out.
38:57
Like maybe I should take a punt on some of these and, and even
39:01
quantum computing, like some of these names when they were
39:03
trading of a dollar or so. It's like, oh, maybe I should
39:05
take a punt now. Obviously, like there's a huge
39:07
question about, you know, the modular reactors.
39:10
I think those eventually will come to, you know, that the the,
39:14
those will become commercially viable.
39:16
And, but, but now they're being discounted to all of them are
39:21
being the valuations being discounted to today.
39:23
As you know, they're all decent monitoring to be successful and
39:26
really needed. And by the way, like I've
39:28
started doing some work around solar, like every type of energy
39:33
source, whether this administration likes or not,
39:36
like all of them are going to be important, right?
39:38
Because there's going to be this huge demand for electricity and,
39:43
and whether it's nuclear, hydro, wind, solar, like everything's
39:48
going to need to be tapped. And so some of these solar
39:51
names, you've seen them rally quite a bit.
39:53
I think we're starting to see, you know, the big, the boom into
39:56
that. But the reason why I mentioned
39:57
these things is that we're in this market environment now
40:00
where people can see that they're not looking at just one
40:03
or two years out now because of Ray.
40:05
Something's floppy. But then people kind of see
40:07
where things are going. You're looking at 4567 years, 10
40:11
years out. I mean, for these nuclear names
40:13
is 10 to 20 years out. And so going back to what
40:17
Reformed trader was saying is like you have these sectors
40:21
where there's like there's multiple ways to express the
40:24
investment of the thesis, whether it's nuclear, quantum,
40:27
you know, AI. But then for this particular
40:30
market, which is going to be massive.
40:31
And I'll talk about why it's going to be massive.
40:34
There's only two companies to express the bet, right?
40:36
I mean, there's like a few legacy guys that are doing X
40:39
messaging and and very intermittent type of services.
40:43
That's that would be Iridium, which got who's gotten destroyed
40:46
global star, which is rally because it's it's Apple
40:49
association. And then there's a few others as
40:52
well. But if you want to focus on
40:55
direct to device broadband connectivity, I will I guess
40:59
broadband connectivity that then that would primarily be AC space
41:01
mobile. And then if you are looking at
41:03
emerging broadband connectivity or eventually that would be
41:05
Starlink. The only way to invest in
41:08
Starlink is through for most normal investors is through a
41:12
special purpose vehicle that you know somebody is is shilling.
41:16
You would send you, you know, in order to which holds Starlink
41:20
shares and then you've got to pay 2 and 20 to participate in
41:23
that vehicle. That's one way.
41:26
And then by the way, like SpaceX is worth $450 billion.
41:29
So you know, how much upside is there?
41:32
You know, could it trade over a trillion?
41:34
Sure, but but it's going to take some time to get there.
41:39
But then the other way to play it is in the public markets is a
41:43
Steve space mobile. There's like one true.
41:45
And by the way, it's not like you're getting exposure to
41:48
rockets and you're getting exposure.
41:50
I mean, in Spacex's case, that's good because they're a dominant
41:53
provider. But here you're getting very
41:56
exact exposure to the niche that you want, which is direct to
42:00
device connectivity, which is an exciting market.
42:02
It's going to transform and disrupt the wireless industry.
42:06
And this is the only true way to express the bet.
42:09
And it's a great way to express the bet goes through the company
42:11
that has a technological lead. It's working with over 50 M and
42:16
OS globally covering 3 billion subscribers.
42:19
It's got regulatory back in the US.
42:21
It's it's about to, you know, you get regulatory backing in
42:25
Europe, you know, it's already going through the regulatory
42:28
process in Japan and and so on and so forth, right?
42:31
Like this is the way to play it. You've got Eldan spectrum
42:35
through regatto, which you know, depending on how people
42:38
evaluate, is it worth 15 billion, You know, wind fully
42:41
deployed 20 billion, you know, the market cap of AST space
42:44
mobile recently, I haven't looked as of today, but it was
42:47
like 26,000,000. So, so you're already getting
42:50
like a high valuable asset that the company owns for the next 80
42:53
years, right? But the reason why I think so
42:59
going back to what reformed trader was saying, like if
43:01
people are pulling forward expectations in this, you know,
43:04
this frothy environment, like, you know, I, I talked about how
43:08
once we get to the launch campaign and we get into launch,
43:13
like I think a stock price of 100 is likely.
43:15
And that was putting aside like we're not even discounting, you
43:19
know, a Verizon definitive crucial agreement, which by the
43:21
way, it just happened today. And then Bell Canada first net,
43:25
some of these other things are getting commercial access to the
43:27
US. But just just on launch, I
43:28
thought we were going to go from it was at 49 dots to call it,
43:33
you know, 100 or at the low end, you know, 70.
43:37
I think in the my post, which I was pinned like 79.
43:40
So where do you pass that? And, and we know like these
43:43
things can overshoot because like in the first launch
43:46
campaign, the stock went from 13 to as high as 39 and then kind
43:49
of settled at 26. So I, I don't know what the
43:52
ultimate high is going to be. And then then we'll obviously
43:55
pull back from that and settle, you know, once once launch
43:58
happens. But yeah, once people I think
44:02
and Kevin Mack had mentioned this before yesterday, he's
44:04
like, I don't think it's shortcoming and it's people who
44:06
are re rating the stock higher because they see the
44:10
fundamentals are improving, which I agree with.
44:12
And so, yeah, I mean, we're as the as institutions are, you
44:18
know, they're getting to the office today and like, oh, wait,
44:20
they see space mobile. They signed it to fit an
44:23
agreement with Verizon. So it's good to see that that's
44:25
another milestone. What does that mean?
44:27
Oh, I guess these guys are going to be one of two big winners of
44:30
this massive market. But then I would argue they
44:33
don't really know what the market is yet and that this is
44:36
kind of the next section I'm getting into.
44:38
But yeah, it it that's that's how the stock price could re
44:41
rate much higher beyond what we think, because we as investors
44:46
think we know most of the story. But then once the market, the
44:50
rest of the market decides like this is the name to own and you
44:54
have a ton of demand for the stock, then that's when the
44:57
numbers OF100200300 like it's possible, it's possible.
45:01
Or 500 is, as a form trader said, under the right
45:04
conditions, you could get this like high level view for it,
45:07
which is why I go back to where Myspace the other day, which is
45:12
like, make sure you have a plan. Like even these scenarios that
45:16
you thought were not possible until maybe 1-2, three years
45:19
later, have a plan in case those things get pulled forward
45:22
because it's possible. I'm not saying it's, it's likely
45:25
and I'm not saying it should happen, but it can happen.
45:29
And there's a decent chance it will.
45:30
And I'll explain why here shortly because I think this,
45:35
this next segment is like why there's a great chance that will
45:38
happen. So here's the title of this
45:41
space. Like 100% connectivity is a true
45:45
paradigm shift. It's like it's going to
45:47
transform mobile connectivity, what it means to be connected,
45:52
and it's going to be required. It's not going to be something
45:54
like an aspiration. It's going to be absolutely
45:56
required. And I think I see Ryan O'Connor
46:00
down there and, and, and Prania as well as I've written about
46:03
this in their recent letters. But you know, when you have a
46:07
true paradigm shift, that's when the real rewriting happens,
46:10
right? And I think it's something that
46:11
I didn't really appreciate. And yeah, we all, we've all
46:14
talked about it. And but he kind of hit home when
46:17
I was speaking to this industry consultant who knows the telecom
46:22
site very well. He, he works with like all the
46:23
major M and OS. And he was saying one of the
46:27
killer use cases of this is the fact that everything needs to be
46:31
connected at all times, right? And so his, his analogy was
46:34
like, imagine Domino's Pizza. They want to go deliver pizzas
46:37
by drone. The FAA is going to ask the
46:42
first question to be like, so are you going to, are these
46:44
drones going to be connected all the time?
46:46
And they're going to say, Oh yeah, you know where they have
46:48
these like 3 GBP modems and they're going to have a service
46:52
of the Verizon or AT&T. But then, and so, yeah, they'll
46:55
be connected. And then the FAA will say, well,
46:57
no, you have to guarantee me that they're going to be 100%
47:00
connected. There can't be even through dead
47:02
spots. They need to have connectivity
47:03
and then and then Domino's going to be like, what do you mean
47:06
it's a dead spot? They can't have connectivity.
47:08
So during that period of time, like the drone will have
47:10
autonomous, you know, functionality where it'll figure
47:13
out where it is through GPS and it'll make it through that dead
47:17
spot. And the FAA will say this is
47:19
dead on arrival. I'm not proving this because
47:22
like, I think for public safety, imagine a world where, you know,
47:26
we talked about like Internet of Things and, and drones and
47:30
robots and autonomous vehicles. Forget about autonomous
47:34
vehicles, even just regular your day-to-day car today, right?
47:38
Everything in the future will need to be connected and it
47:41
needs, it's not just connected, but it'll have to have 100%
47:44
connectivity. So for these companies that are
47:46
looking at drones or robots, like you cannot from a
47:51
regulatory point of view, you know, and if it's like an
47:54
autonomous truck, like a semi barreling down a highway, but it
47:58
goes into a dead, dead spot of coverage, The writers going to
48:02
be like, there's no fucking way I'm approving this because they
48:05
need a human operator that's monitoring these things at any
48:07
point in time to have their finger on a kill switch that
48:11
basically turns the thing off because if you don't do that,
48:14
then then human lives are at risk, right.
48:16
And so going back to the pizza analogy, like if there's a, if
48:20
there's kids playing in the yard and this drone is in a dead spot
48:23
of coverage and it and the kit and the drone decides to land on
48:25
the kid and the kid gets injured or, or a pet gets injured.
48:28
Like the company, Domino's can't afford that type of liability.
48:32
And you would have a huge backlash of like, fuck these
48:34
drones. Like no one's, no one wants to
48:36
use them. And so it's going to be a bare
48:40
minimum, minimal requirement that you have 100% country, no
48:44
matter where you are for these types of vehicles or services.
48:47
And so terrestrial networks can't do that because you have
48:51
to build a tower. And you know, if you want 100%
48:54
community, you're going to have to overbuild, You're going to
48:56
have to build in areas where it's uneconomic.
48:58
But even then, you're going to have dead spots because towers
49:01
aren't perfect. They don't, they may not overlap
49:03
perfectly or there may be like valleys or they may be different
49:07
areas where they, where they don't work.
49:08
And so the beauty of AC6 Mobile is 1, It uses a cellular
49:13
spectrum and it will cover those dead spots.
49:15
But then just as importantly, this is where the company's like
49:18
truly visionary. They will leverage their L van
49:21
spectrum, which covers the entirety of the US and Canada.
49:24
And then, you know, they're going to expand to other
49:25
countries as well. But that's true ubiquitous 100%
49:29
coverage that overlaps with the trash network.
49:31
You can go to the DMNO and say, hey, look, I'm going to leverage
49:34
your spectrum and we're going to use the cellular spectrum in
49:38
these dead areas. But then we're also going to
49:41
provide you with this MSS spectrum for to augment your
49:45
capacity. Like you're going to be able to
49:47
leverage our network in areas where perhaps, you know, it's
49:50
congested, like, let's say a football game like will help.
49:53
We're going to, we're going to put in, we're going to give you
49:55
additional connectivity options where then you're going to
49:58
aggregate like, and then I'll put in spectrum connectivity.
50:03
But then more thing is that they're going to be able to go
50:07
to car manufacturers, real by manufacturers prones and say,
50:11
Hey, look, IAT and T and price are going to say, Hey, we can
50:13
give you 100% guaranteed coverage.
50:16
And then those guys are going to be able to go to regulators, the
50:18
FAA, the Highway Safety Administration or whatever,
50:22
NHSTA or whatever. And they're going to be able to
50:25
say, Hey, we, these, these vehicles are going to be
50:27
connected all the time. We're going to be monitored by
50:29
humans. If there's any issues, then
50:31
we'll be able to control it and we'll be able to, you know, shut
50:33
them down. And that's like a true game
50:35
changer. And and that's just like, you
50:39
know, we talk about the MN OS having 3 billion subscribers.
50:43
Like forget about the subscribers, like how many
50:45
devices there are going to be. If there's like 3 billion
50:47
subscribers, there could be 15 billion devices that need to be
50:51
connected or 20 billion. I don't know you, you make up
50:53
the number. I mean, my family, we've got
50:56
like 4 phones, 2 watches, No 3 watches.
51:01
We've got like all these air Tags, which by the way, like
51:03
those things eventually are going to get a cellular modem or
51:07
some type of ability to connect. Like just imagine the
51:10
proliferation of devices in your house and then and then imagine
51:14
like those device, some number of those devices going outside
51:18
and need to be connected any, anytime, anywhere.
51:21
And so that's a huge paradigm shift.
51:23
And, and it's not, you know, the other thing is like ACE TS,
51:27
large satellites are able because we have a large phased
51:30
array and the spectral efficiency and you know, you
51:33
have cellular and also MSS spectrum being able to penetrate
51:39
walls, houses, but also like cars.
51:42
That's going to be really important when people want to
51:44
use the service, right? You don't want to be dropped
51:47
even if you're, I mean, I think I talked about this before, like
51:50
80% of device usage is in the house, but then that 20% when
51:55
you're out, half of that, call it 10% is in your car and you
51:58
want it to work through the roof of your car.
52:00
But having ubiquitous coverage is going to be important, not
52:04
just for like physical human subscribers, but it's going to
52:07
be required for all these devices and vehicles that
52:11
especially the vehicles that are going to provide services that
52:16
will need to be connected all the time.
52:18
And that's not going to be something that a company just
52:21
decides how come it's going to be required by regulators.
52:25
And so and you and then of course, you can like imagine
52:28
that into the defense applications and the battle
52:31
space. We don't need to go through
52:33
that. But I mean, all the things that
52:34
are connected, Andrew, and you name it, like all these things
52:36
are going to have to be connected and there's enough
52:39
redundancy. The the enemy is going to try to
52:41
jam one network. And that's why I like AC space
52:44
Mobile, Starlink, even some of these other players like the,
52:48
the US government's going to leverage everybody because
52:51
you're going to want to have resiliency.
52:53
So if something is jammed, then something else works.
52:57
So there's going to be like a seat at the table for pretty
52:59
much everybody. But I think, I think like when
53:04
talking about re rating, most institutions are focused on the
53:08
consumer side. You know, they haven't even
53:10
thought about golden Dome defense applications.
53:12
I mean, everybody sees AC space mobile and they think of like,
53:15
hey, that's a mobile phone company that can connect to
53:17
satellites. No, it's way beyond that.
53:20
And, and Prana and his investor letter yesterday covered like in
53:25
detail because the guy's been studying, he's been basically
53:29
become a knight, an engineer at night.
53:31
He's been reading a lot of books about spectrum and, and the
53:34
different applications that can be used with spectrum.
53:36
And so in his letter last night, which I posted, you can see to
53:42
me it crystallized what it meant.
53:43
Like, yeah, and, and Cassie's written about this too, but like
53:47
deals utilize our two satellites in order to view basically like
53:51
radar imaging and tracking is pretty damn cool.
53:54
And the accuracy that you're able to get from those two
53:58
satellites is is invasion. But yeah, so I think for
54:03
institutional investors, once they kind of, you know, they
54:05
scratch the surface and get involved, then they start
54:08
peeling back the layers and it's like, Oh my God, this is not
54:11
just a mobile phone connectivity company, it's a defense company.
54:15
It's like 100% connectivity for drones and, you know, all all
54:21
kinds of things, right? Kind of enabling the next
54:23
generation of applications where as, as some people said,
54:28
manipulating photons or spectrum, you know, basically
54:31
spectrum is going to be key to enabling these other areas of
54:35
growth, which are Richard drones and AI, you know, any number of
54:40
things. But anyway, but yeah, it's, it's
54:44
an exciting time. I think as I mentioned before
54:47
today is a big validation point that the market, it's going to
54:51
take time to digest and before they're able to adjust it,
54:54
there's going to be another news event which will be about Canada
54:56
on shore. But I think it's important to
55:00
know like it's got like from a investor perspective, like the
55:05
guy knows how to he's a killer. He like dropped.
55:09
I, I, I didn't get to finish this point before now.
55:11
I'm thinking about that, thinking back about it.
55:13
He dropped the ATM. He he, but before that he told
55:16
us like all these great things are happening, but he dropped
55:18
the ATM. I'm sure a bunch of shorts and
55:21
other people like, you know, the short sellers sold and or sorry,
55:25
shorten the sock and, and of course for those of us who knew,
55:29
Oh yeah, the company's dropping the ATM, it must mean like
55:31
something big's happening. And by the way, like I gave
55:33
credit to Rocket Lab holders like they understand Rocket Lab
55:36
like sets up the ATM Oh, Peter Beck must be he sees like some
55:41
really creative like acquisitions.
55:42
So, so this is good. Whereas like I think some of
55:45
our, our shoulders need to be conditioned as such that when
55:49
the company's raising capital, they're raising it for a reason.
55:51
The last time they they spent big money was on legato and and
55:55
that was like a highly a creative transaction.
55:57
They're putting this ATM in place for a reason.
56:00
It's not to fund the current consolation because it's totally
56:03
funny. It's to go pursue other
56:06
opportunities, many of which we don't even we can't comprehend.
56:10
And so I'll end the space for that that, you know, as we enter
56:16
in catalyst season, there's going to be a lot more great
56:19
news. I I just dropped, I reposted my
56:23
my old post from August in which I need to update on milestones
56:26
that have passed and upcoming catalyst.
56:29
Now several of those casts have already come to pass, but I
56:31
think near term we can look forward to our FM 1 FMT launch
56:36
and then FM 3 through 5 launch, all which I mean should happen
56:41
before the end of the year. Bell Canada Defender Agreement,
56:44
Golden Dome and any other defense awards.
56:48
And then, yeah, there's other partner MNO partnerships that
56:52
can come to fruition. First that, you know, we've been
56:55
panning the table for quite some time, but we do know that
56:59
they're close to making some type of investment or contract.
57:02
So, so that should be coming soon.
57:04
And, and yeah, there's a lot of things that, I mean, you can
57:07
just read the list. But anyway, I hope that was
57:09
helpful. The market's about to open.
57:11
I need to get ready to do to, to make some moves.
57:14
So I'm going to end the space here.
57:16
But yeah, thanks everyone for joining.
57:17
I hope this is helpful, but yeah, very big day to be
57:20
excited. Verizon signing this commercial
57:23
agreement, huge validation point after 16 months, everything
57:28
that's happened since then and about to happen, Verizon feels
57:32
really good about. And the science commercial
57:34
agreement. So a big fucking deal.
57:36
Take care everyone. We are all the best.
58:26
I'll be for both of us. They're the best.
59:11
The. She lifts around she draws the
59:24
wink a clap to simply March in the safe patrol and under my my
59:30
steep. My big Lord.
59:35
She hung around the sound of that the longest of my heart
59:46
stepped here up and home open the board's.
59:53
We are all the winners. We are all the best.
59:57
My people bump this up. They're the tea the mess ever on
1:00:01
the lunar only going all the way.
1:00:07
So Harvey and the movement all my life give me yeah.
1:00:11
We are all the winners. We are all the best.
1:00:16
The Beast. We are all the winners, we are
1:00:31
all the winners, we are all the. Thanks for listening to the AST
1:00:43
Space Mobile podcast. If you enjoyed this episode and
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Thanks again and I'll see you next time.
1:01:04
We're doing something very, very big, an activity technology.
1:01:07
We can really affect billion lives.
1:01:10
AFT Space Mobile is the only company that has proven
1:01:13
technology to deliver cellular broadband connectivity directly
1:01:17
from space. In everyday smartphone, people
1:01:21
will just basically turn their phone and be seamless,
1:01:24
regardless of where you are. We don't want the user even to
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know that it's connected by satellite.
1:01:29
Our role is to bring this into reality, always in partnership
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with the MMO. Listen, Waffles.