2026-10-12
53:42
AST SpaceMobile vs SpaceX Spectrum
Kook
This solo episode of the AST SpaceMobile Podcast features host Kook alone, recorded after a brutal week for ASTS stock. He unpacks a sharp selloff tied to leveraged-trading pain, a delayed Blue Origin launch, and confusion over SpaceX's spectrum purchase.
Kook argues SpaceX's purchase of low-band spectrum, which he pegs at roughly $8 billion and which triggered the selloff, actually signals SpaceX abandoning its role as a wholesale B2B satellite provider to carriers in favor of a direct-to-consumer Starlink Mobile strategy. He says that removes SpaceX as AST's main competitive threat for mobile-carrier partnerships.
He also covers the State Department's J-LEO announcement naming AST and Rakuten, a Brazil spectrum win, Elon Musk's spectrum fight with India, and skepticism that Starlink Mobile can out-compete entrenched US carriers. He relays analyst Tim Farrar's view that Starship delays will slow SpaceX's own satellite rollout.
Kook's headline conclusion is that the market badly misread the SpaceX news. He says Barron's and sell-side analysts agree it should favor AST SpaceMobile, not hurt it, as carriers rally around AST's technology instead of SpaceX's.
AST SpaceMobile vs SpaceX Spectrum
Kook
This solo episode of the AST SpaceMobile Podcast features host Kook alone, recorded after a brutal week for ASTS stock. He unpacks a sharp selloff tied to leveraged-trading pain, a delayed Blue Origin launch, and confusion over SpaceX's spectrum purchase.
Kook argues SpaceX's purchase of low-band spectrum, which he pegs at roughly $8 billion and which triggered the selloff, actually signals SpaceX abandoning its role as a wholesale B2B satellite provider to carriers in favor of a direct-to-consumer Starlink Mobile strategy. He says that removes SpaceX as AST's main competitive threat for mobile-carrier partnerships.
He also covers the State Department's J-LEO announcement naming AST and Rakuten, a Brazil spectrum win, Elon Musk's spectrum fight with India, and skepticism that Starlink Mobile can out-compete entrenched US carriers. He relays analyst Tim Farrar's view that Starship delays will slow SpaceX's own satellite rollout.
Kook's headline conclusion is that the market badly misread the SpaceX news. He says Barron's and sell-side analysts agree it should favor AST SpaceMobile, not hurt it, as carriers rally around AST's technology instead of SpaceX's.
Key Takeaways
- ASTS stock fell sharply on heavy volume last week after SpaceX announced it would buy low-band spectrum, but host Kook argues the market's negative reaction was backwards and the news is actually good for AST SpaceMobile.
- Kook describes SpaceX's spectrum purchase as roughly $8 billion (stated casually/approximately) for what he believes is Nextel-era 800 MHz spectrum, and frames it as SpaceX pivoting from a wholesale B2B satellite-to-carrier model toward a vertically-integrated, direct-to-consumer 'Starlink Mobile' service.
- That pivot, according to Kook, removes SpaceX as AST SpaceMobile's main potential competitor for mobile-carrier partnerships, strengthening AT&T, Verizon, and T-Mobile's incentive to stick with AST instead.
- Kook says Barron's publicly stated the ASTS selloff didn't match the fundamentals, and cites sell-side firms Berenberg and Roth Capital as viewing the SpaceX spectrum news as validation of AST's direct-to-cell strategy rather than a threat.
- The US State Department named AST SpaceMobile and Rakuten specifically in a joint communique on US-Japan technology cooperation tied to the J-LEO satellite project.
- Kook argues Elon Musk's public dispute with the Indian government over spectrum access, which he ties to lobbying by an Indian billionaire he refers to as Ambani, illustrates a structural international weakness for SpaceX versus AST's local-partner model.
- Kook relays a report that telecom analyst Roger Entner described the new AT&T/Verizon/T-Mobile satellite joint venture as informally known as the 'Non-Elon Club,' intended to prevent SpaceX from unilaterally setting satellite-to-phone standards.
- Former AT&T network executive Chris Sambar, now at T-Mobile, publicly stated that AT&T, Verizon, and T-Mobile are aligning around direct-to-satellite technology, and Kook cites reports that T-Mobile has removed Starlink branding from its satellite marketing.
- Kook relays analyst Tim Farrar's view that SpaceX's new terrestrial build-out obligations will further delay its second-generation direct-to-cell satellites, which already depend on the not-yet-operational Starship rocket and were pushed to the second half of 2028.
- Kook estimates AST needs roughly 25 launches on vehicles like New Glenn to deploy its 243-satellite constellation, versus a rough estimate that Starlink's broader satellite plans could require on the order of 300 Starship launches, a gap he argues favors AST's near-term execution.
- Kook notes the FCC has opened additional spectrum for Supplemental Coverage from Space and removed a continuous-coverage requirement, giving AST SpaceMobile more flexible access to spectrum held by its carrier partners.
- Kook says AST SpaceMobile received a new FCC Special Temporary Authority to test the 902-928 MHz band for advanced radar capabilities tied to non-communications government use cases.
- Kook pushed back on investor criticism that AST needs to 'control the narrative,' arguing the company already communicates extensively through its 10-K filings, earnings calls, and industry presentations rather than hyping unconfirmed programs like Golden Dome or Japan's J-LEO.
Detailed Discussion14 topics
A Brutal Week for ASTS Stock
3
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ASTS stock had what Kook calls a horror-show week driven by three specific negative developments happening together: a delayed Blue Origin launch, AST's own execution slipping, and confusion around SpaceX's spectrum purchase.
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Kook describes leveraged traders getting hammered, including people using heavy options leverage or ASTX (a leveraged ASTS product) who sent him DMs describing facing 'basically ruin'; he says momentum stocks broadly got hit, not just ASTS.
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Kook spent the weekend refreshing his personal 'Code Red' ASTS diligence document for an upcoming re-release, noting it had been roughly six months since his last update.
Satellite Shipment Tweet and Company Communication Style
2
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AST tweeted that its satellites had arrived at Cape Canaveral, information the community already knew; Kook speculates the company may have held off posting until it had schedule certainty for the launch date, and floats a Monday announcement of a firm launch date as possible though he's 'not particularly hopeful.'
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Kook pushes back hard on investors demanding the company 'control the narrative,' arguing AST already communicates extensively via its 10-K, earnings calls, investor presentations, and industry events, and that it deliberately avoids hyping unconfirmed programs like Golden Dome or Japan's J-LEO because of government confidentiality requirements and cultural protocol (especially with Japan).
State Department Spotlights J-LEO and Rakuten
2
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The US State Department named AST SpaceMobile and Rakuten specifically — not a broad list of companies — in a joint communique on US-Japan technology cooperation, which Kook frames as evidence of high-level government coordination around AST's role in strategic competition with China.
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Kook argues AST's strength in the 'awareness' and 'decision' components of the military 'kill chain' concept makes the J-LEO project strategically valuable to Golden Dome beyond basic connectivity use cases.
International Spectrum Wins: Brazil and the Elon-India Dispute
3
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Kook notes AST — and separately SpaceX — received spectrum access in Brazil this week, calling it an incremental but under-appreciated win.
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Kook discusses Elon Musk's public Twitter fight with India's government after an Indian billionaire he refers to as Ambani allegedly lobbied to block SpaceX; Kook argues this damages SpaceX's international standing because sovereign governments may distrust a US company with unilateral 'kill switch'-style control over connectivity.
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Kook argues AST's B2B model, which 'vests power' in local mobile network operators and governments through data sovereignty, is a structural international advantage versus SpaceX's more centralized, vertically-integrated approach.
SpaceX Buys Low-Band Spectrum — Good or Bad for AST?
3
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Kook says SpaceX bought low-band spectrum he describes casually as costing roughly '$8 billion, whatever,' which he believes is Nextel-era spectrum that's been around for about 20 years; the news triggered an immediate roughly 15% single-day ASTS stock drop on about 50 million shares traded.
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Kook argues the purchase is actually good news for AST because it shows SpaceX removing itself as a B2B competitor and instead becoming a vertically-integrated B2C 'Starlink Mobile' provider, a business model Kook says is fundamentally inconsistent with how Elon Musk operates and with how AST's MNO-partnership model works.
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Kook relays that two friends — a telecom industry contact with CEO-level MNO relationships and a banker with spectrum expertise — independently and unprompted told him the SpaceX news was good for ASTS, and cites Barron's publicly stating the stock drop 'shouldn't' have happened and calling it an endorsement of AST's strategy, alongside supportive sell-side notes from Berenberg and Roth.
Did ASTS Miss Out on the Spectrum?
1
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Kook speculates the AT&T/Verizon/T-Mobile joint venture, not AST directly, was likely the bidder that drove up the spectrum's price, and that AST may instead be positioned for a lease/revenue-share deal on that spectrum rather than an outright purchase, consistent with how AST already accesses partner spectrum without buying it outright.
Can Starlink Mobile Actually Compete With the MNOs?
2
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Kook argues Starlink Mobile faces major structural hurdles: building out terrestrial towers and radios takes years, it likely lacks Apple/Samsung device partnerships, carrier churn is already low, and it would be entering a US market where AT&T, Verizon, and T-Mobile already compete intensely on price, device subsidies, and marketing.
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Kook cites a banking friend's view that Starlink Mobile is not a meaningful threat to the big three US carriers 'before a 2040-type outcome.'
Tim Farrar and the Starship Launch Math
2
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Kook relays analyst Tim Farrar's view that SpaceX's new terrestrial build-out will further delay its V2 direct-to-cell satellites, which already rely on Starship and had already slipped to the second half of 2028.
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Kook estimates (doing rough math with an AI tool) that AST needs on the order of 25 launches on vehicles like New Glenn to field its 243-satellite constellation, while Starlink's roughly 15,000-satellite plan could require on the order of 300 Starship launches, with a minimum viable direct-to-cell product alone needing an estimated 50 Starship launches — a cadence he calls essentially impossible on current Starship timelines.
The 'Non-Elon Club' Carrier JV and T-Mobile's Pivot Away From Starlink
2
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Kook cites a Roger Entner interview describing the new AT&T/Verizon/T-Mobile satellite joint venture as informally known as the 'Non-Elon Club,' designed to prevent SpaceX from unilaterally setting satellite-to-phone standards and to stop any single carrier from striking an exclusive MVNO deal with Starlink.
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Kook highlights T-Mobile executive Chris Sambar — the former AT&T network leader Kook credits with originally brokering AT&T's AST deal — publicly stating that AT&T, Verizon, and T-Mobile are coming together around direct-to-satellite service technology, and cites reports that T-Mobile has erased Starlink branding from its satellite offering.
US Carrier Market Structure vs. the ULA Analogy
1
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Kook argues the US MNO market, unlike the Boeing/Lockheed ULA launch monopoly born of insufficient demand, is a genuinely competitive 'street fight' between AT&T, Verizon, and T-Mobile with thin margins and constant promotional spending, meaning Starlink would face real competition rather than a complacent incumbent structure.
Other Carriers Reportedly Shifting From Starlink to AST
2
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Kook says it 'looks like' One New Zealand may be flipping from Starlink to AST SpaceMobile, and that he expects more carriers to follow this pattern.
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Kook notes Abel Avellan tweeted about the aggregate spectrum held by US carriers, implying AST already has access to it, which Kook reads as a possible subtle confirmation of a T-Mobile relationship.
FCC Tailwinds and Golden Dome Radar Testing
2
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Kook notes the FCC has opened additional spectrum specifically for Supplemental Coverage from Space and removed a continuous-coverage requirement, giving AST more flexible access to spectrum already held by its MNO partners.
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Kook relays (crediting community member Justin Barrett) that AST received a new FCC Special Temporary Authority to test in the 902-928 MHz band for its advanced radar capabilities, which he connects to Golden Dome-related non-communications use cases the company is restricted from publicly detailing.
New Glenn Returns to the Pad
1
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Kook says he was personally invited to invest in a new Blue Origin funding round at a high valuation with strong investor interest, and that Blue Origin is stacking first-stage boosters with roughly 20 second stages in production, which he says would materially improve AST's satellite deployment pace if New Glenn resumes launching reliably.
When the Market Gets It Wrong
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Kook recounts a past example with Anpanman: when AST announced its Verizon deal, the stock rose only about 5% despite what Kook considered monopoly-level significance for the stock (then trading around $5), prompting him to buy aggressively above the market offer; he draws a parallel to the current selloff, suggesting the market may again be mispricing good news before recognizing it.
Watch Items3
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Possible announcement of a firm launch date for AST's next batch of satellites
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SpaceX's V2 direct-to-cell satellites, which depend on Starship
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New Glenn's return to the launch pad
Open Questions4
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Was AST SpaceMobile itself bidding on the low-band spectrum SpaceX ultimately bought, or was it the AT&T/Verizon/T-Mobile joint venture bidding on AST's behalf via a prospective lease deal?
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Can Starlink Mobile actually become economically viable as a direct-to-consumer carrier given device-ecosystem lock-in with Apple and Samsung, the lack of existing towers, and the capital intensity of competing with entrenched US MNOs?
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Will SpaceX ultimately pursue an MVNO deal with one of the big three US carriers, and would such a deal even be economically competitive given markup requirements on wholesale network access?
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Will the Indian government relent and grant SpaceX market access given Elon Musk's public dispute with India's government, or will the diplomatic friction persist?