Episodes

FM1 is expected to be ready to ship in August 2025 (this month), with the actual launch date to be mutually determined with ISRO afterward; there may be sequencing tension with another important ISRO mission originally scheduled after AST's.

Abel Avellan confirmed on the call that all future launches are completely independent of one another and are not contingent on a successful FM1 launch or phased-array deployment, meaning FM2 could in theory fly before FM1 if FM1's launch is delayed.

References slide 7 of the presentation showing 13 planned launches sequenced against micron completion; by September there should be enough microns completed for 5 launches, and — reading the ready-to-ship timeline, with the standard caveat that timelines are contingent on multiple factors — launches 3 and 4 could theoretically be ready in November and launch 5 in December.

The company expects to average launches every 1 to 2 months through the rest of 2025 and 2026.

The company has completed microns for a total of 8 Block 2 BlueBird satellites so far; Block 2 satellites are roughly 3 times bigger than Block 1, mainly due to larger solar panels and phased array.

The company appears on track for a production cadence of microns for 6 satellites per month by the end of Q3 2025, and is targeting completion of microns for 40 Block 2 satellites in early 2026; Anpanman says the new control bus ('tuna can'), not micron production, is likely to be the bottleneck.

The company reiterated it will have up to about 400,000 square feet of manufacturing facilities across Texas, Europe (Spain), and other locations, supported by 1,200 workers; Anpanman notes the company did not specifically call out its Homestead, Florida site today, which he speculates is intended for government satellite production given its proximity to other defense primes.

The company is procuring materials for roughly 40 satellites in order to avoid potential tariff impacts, and reiterated a target production cadence of 72 satellites per year.

Abel Avellan said mid-band BlueBirds (serving Ligado L-band and S-band frequencies) will support spectrum from 1.5 GHz up to 2.6 GHz, which surprised Anpanman since he had believed the range only extended to 2.4 GHz; he notes this could open the door to using the 120 MHz of 2.5 GHz spectrum held by T-Mobile (via the Sprint/Clearwire merger) and SoftBank in Japan.

Says Abel mentioned, though Anpanman is unsure he heard it correctly, that there could be up to 8 additional satellites potentially ready (though maybe not fully tested) just a few weeks after FM1, which he takes as a sign of aggressive production pace.

Abel said the 6 satellites currently in orbit are being used by government customers testing different applications; Scott Wisniewski said there are 5 to 10 different unique use cases, which Anpanman notes is the first time the company has quantified that figure.

The company said it now has a total of 8 US government contracts after 2 additional awards this quarter; Scott described these as 'programs of record' that can grow into hundreds of millions of dollars in revenue once past initial test phases.

Scott noted AST's satellites are the largest phased arrays in low Earth orbit and can be built for about $23 to $24 million each, far cheaper than traditional government satellite primes that can cost hundreds of millions to billions of dollars per satellite over multi-year timelines.

Says the company reiterated it tested with 'all US forces' and that US firms were involved in developing some satellites, suggesting FM1 and FM2 carry unique government-oriented capabilities that may later trickle down to the Block 1 fleet.

The company guided to intermittent commercial service in the US by the end of 2025, which Anpanman says was a bit of a surprise to him, and to UK, Japan, and Canada commercial service in Q1 2026 — consistent with Rakuten separately moving up its own guidance from end of 2026 to early 2026.

The SatCo European JV is drawing interest from 21 of 27 EU member states, according to the company.

CFO/Chief Legal Officer Andy Johnson said the Ligado transaction remains on track to close and is now purely in a regulatory review process; the confirmation hearing originally scheduled for August 7 was pushed to August 27, reportedly due to a disagreement over a term with Inmarsat.

On the recently acquired S-band ITU priority spectrum rights, the company said the deal effectively gives it priority standing to negotiate S-band licenses with regulators worldwide (outside the US and Europe, where S-band is already allocated), which Anpanman calls a strategic moat that would be hard to replicate.

The company reiterated guidance of $50 to $75 million in revenue for the second half of 2025, with most of it expected to be government-related; some contract details may remain undisclosed if classified.

Bookings this quarter were $14 million, primarily related to MNO purchases of infrastructure like gateways; the company said it expects roughly $10 million in bookings on average for the next few quarters.

The company confirmed a $550 million SPV, backed by underlying Ligado assets and currently arranging bridge/term-loan financing, will cover a $420 million payment due to Ligado in October and a $100 million payment due in March 2026, meaning no cash out of AST's own pocket for those two payments (though ongoing usage and interest payments still apply).

The company reiterated it will have $1.5 billion of cash on the balance sheet and said it is fully funded for deployment of the 45 to 60 satellite constellation, which Anpanman describes as the business being largely de-risked as long as the launch timeline holds; additional funding could still be needed if there are delays or new opportunities (e.g., a dedicated government-focused entity).

The company said that once 25 satellites are in orbit, that initial constellation is expected to contribute meaningfully to covering operating costs, which Anpanman guesses relates to hitting service KPIs tied to government customers.

CFO Andy Johnson expressed confidence that commercial revenue, government revenue, and non-dilutive funding sources will meet the company's funding needs; the company terminated its $500 million ATM program after using approximately $493 million of it.

Andy Johnson said the company is shifting spend away from 'standing up the business' toward commercialization and strategic development, while noting the company would still seek additional financing if appropriate.

The company reiterated it is pursuing roughly $500 million in Ex-Im and IFC funding and appears further along in that process, though the exact timeline is unclear.

As of the call date, AST has completed assembly of microns and phased arrays for 8 Block 2 BlueBird satellites, in addition to 6 currently in operations, and expects to complete assembly of approximately 40 satellite equivalents of microns and phased arrays by early 2026.

Manufacturing uses a 95% vertically integrated approach and remains on track to reach a cadence of 6 satellites per month during 2025; the company will soon have over 400,000 square feet of manufacturing space supported by a global workforce of over 1,200.

Responding to an investor question on production rate: within about a week AST will be at 9 satellites (phased arrays) built, in addition to the 5 already in orbit; the company now has the capability to reach 6 phased arrays per month and expects around 40 phased arrays built by end of 2025/very early 2026, with full-satellite build rate expected to catch up later this year to match a launch cadence of one launch every 45-60 days with 6-8 satellites per launch; 6 launches are already secured/manifested for 2026.

Provided the right market conditions, AST's long-term plan is to actually produce 72 satellites per year, split between low-band and mid-band variants using its own spectrum.

FM1, AST's first next-generation Block 2 BlueBird satellite, will be ready to ship in August 2025; the company is working with its launch provider to determine the earliest possible launch date.

AST anticipates at least 5 orbital launches by the end of Q1 2026, occurring every 1-2 months on average, to reach a goal of 45-60 satellite launches during 2025-2026, driving continuous coverage in the US, Europe, Japan, and other strategic/government markets.

Responding to a question citing ISRO's chairman suggesting a communications-satellite launch (assumed to be AST's) within a couple of months, and asking about the chance of a batch Block 2 launch ahead of that ISRO launch: Abel said that is not the plan — the satellite is ready to ship this month, AST is finalizing the exact launch date with ISRO, and the 6 planned launches run independently across multiple launch vendors/partners.

The court formally approved the Ligado definitive documents underpinning 80-year L-band usage rights, closing that transaction milestone; separately, AST closed a long-term non-recourse SPV-level delayed-draw financing facility usable once formal FCC approval is received, and is working on bridge financing ahead of FCC approval via a sponsor backstop commitment. The relevant spectrum is already FCC-authorized for geostationary-orbit space usage, and AST expects full approval to be a 2026 event, with initial filings expected in the coming months.

With L-band access for the US/Canada plus new S-band landing rights being pursued country-by-country, AST can combine low-band (from telco partners, for penetration and performance) with mid-band capacity (from its own L/S spectrum) on a global basis.

Responding to a question on the Ligado transaction's payment structure: the primary outflow is just north of $500 million, financed via non-recourse SPV financing; the payment obligation begins at the end of October 2025 (bulk of it, approximately $420 million) with a further approximately $100 million due in March 2026. Separate ongoing spectrum usage fees will begin later this year as part of the operating model.

Asked whether S-band is licensed nationally anywhere yet, Abel said it's a project starting now; AST will go administration-by-administration according to partner priorities to complement L-band and low-band access, building on 'bring-to-use' status established around 2016.

On S-band's current usage: there's some history of usage in the US and Europe, but in most other markets around the world usage is limited and the band is largely reserved for space use — creating a significant opportunity for AST to offer value to regulators and operators country-by-country.

On regulatory timeline and device support: AST deploys in tranches, starting with existing 3GPP low-band spectrum already supported in essentially every phone (a 5-billion-plus device addressable market); L-band and S-band chipset support is expected in future chipsets, timed to align with AST's own deployment plan as it adds those bands.

AST is preparing to deploy nationwide intermittent service in the United States by the end of 2025 with US MNO partners AT&T and Verizon, followed by the United Kingdom, Japan, and Canada in Q1 2026.

Q2 gateway equipment bookings were $14.9 million, a sequential increase driven by accelerated deployment of global network infrastructure; AST expects roughly $10 million average quarterly bookings during the second half of 2025.

AST reiterated its belief in a second-half 2025 revenue opportunity of $50-75 million, contingent on successful Block 2 launch/deployment, US government contractual milestone achievements, gateway equipment sales to MNO partners, and service revenue from activated commercial service — with no assurance any or all of these will be achieved.

Explaining how the 120 Mbps peak data rate per cell translates to real-world usage: a satellite has between 2,500 and 10,000 cells depending on band (10,000 achievable with the new ASIC), and within roughly a 12-kilometer-radius cell, the 120 Mbps peak capacity is shared dynamically among users doing voice, text, video, FaceTime, WhatsApp, or email — the number of concurrent users depends on local cell density and changes as more satellites are added.

Asked what the nationwide intermittent service product will look like and whether it will be a paid product or a promotional vehicle, Abel said AST is coordinating with telco partners on this and prefers to comment jointly with them, but noted the US government is already using the satellites on an intermittent basis today.

Asked where IoT fits into the carrier partner timeline given the day's focus on broadband, Abel said the gap between continuous and non-continuous coverage is relatively short, that early applications are primarily governmental, and that IoT is a relatively small market compared to cellular broadband and the government opportunity, but is planned in addition to consumer broadband capability.

Asked about the government TAM given recent developments in Washington, Abel said multiple government branches are testing and using AST's operational satellites under 8 contracted programs today, spanning both communications and non-communications applications already in use.

Asked whether a future 'Block X' satellite variant with government-specific capabilities might emerge, and whether current government capabilities were part of the original design or added later, Abel said government-use capabilities are already present and in use on satellites currently in operation, and that Block 1 required additional design features incorporated about a year and a half ago.

Added that the constellation's design lets AST evolve and tweak the large phased array's capability over time — rather than the classic approach of adding a transponder or payload — which the company can do attractively from a financial perspective as long as it maintains its constellation.

Guidance for Q3 2025: adjusted operating expenses of approximately $50 million (excluding transaction expenses); capital expenditures expected to decrease to a range of $225-300 million, due to the timing of certain launch payments.

AST reiterated an average capital cost estimate (direct materials plus launch) of $21-23 million per satellite for the planned constellation of over 90 Block 2 BlueBird satellites — unchanged from last quarter's guidance, subject to fluctuation from geopolitical factors.

AST is progressing diligence and documentation on over half a billion dollars of potential non-dilutive capital from multiple US and international quasi-governmental agencies, following completion of initial funding clearances.

Responding to an investor question on funding sufficiency, Andy said AST's pro forma balance sheet of over $1.5 billion, combined with near-term government and commercial cash inflows, means the company believes it is fully funded to reach the 45-60 satellite level; going forward, capital strategy will shift from funding baseline thresholds toward commercial/strategic development and optimizing capital structure, with de-risking as a goal rather than treating new capital as a primary funding need.

Kook expects the company to repeat or reaffirm guidance of at least 20 Block 2 satellites by year-end, which he calls the point at which 'the true inevitability of this company' and a major stock revaluation occurs.

A subsequent June 2025 prospectus dropped the specific July language, instead saying the company expected to 'commence our launch campaign shortly' for over 60 satellites in 2025 and 2026 at a cadence of about one launch every one to two months, heavily hedged with contingency language — which Kook attributes to the company having just learned that a launch ahead of them (ISRO's) was slipping.

A July 28, 2025 prospectus (filed alongside a new convertible bond offering) reinserted specific language: the company expects to ship the first next-generation Block 2 satellite to the launch provider in August 2025 and commence its launch campaign of over 60 satellites shortly thereafter.

ASTS disclosed in its recently filed convertible-note prospectus that it expects to sign an agreement with Verizon.

Unveiled the company's orbital launch plan: 5 scheduled launches over the next 6 to 9 months, with orbital launches occurring every 1 to 2 months on average during 2025 and 2026, expecting to deploy over 60 satellites during that period to drive continuous coverage in the US, Europe, Japan, and for the US government.

The launch campaign begins with the first Block 2 BlueBird satellite achieved in Q2, with the launch scheduled during July.

The upcoming July launch is in India, and for reasons beyond the company's control shareholders won't be able to be invited to attend that launch, unlike the September Cape Canaveral event that drew over 1,000 shareholder attendees; future Cape launches will again include shareholder invitations given the roughly every-1-to-2-month cadence going forward.

The first of the upcoming 5 launches will carry only 1 satellite; some early launches will have fewer than full vehicle capacity, but the company wants to have roughly 20 satellites up as soon as possible and is overproducing at the factory to ensure it isn't the bottleneck versus available launch vehicles.

Depending on the vehicle, launch capacity is roughly 3 to 4 satellites per smaller vehicle or up to 8 satellites on larger vehicles; because these are the largest-ever commercial communications satellites, the first launch will typically be a single-satellite launch given the specific vehicle used.

AST's strategy has been multi-operator and launch-vehicle-agnostic all along; the timing is somewhat dynamic so firm per-launch satellite counts can't all be committed, but the company will provide updates launch by launch, quarter by quarter.

Manufacturing remains on track and is accelerating toward a target of building 40 Block 2 BlueBird satellites this year, each the largest-ever commercial communications satellite in low Earth orbit, alongside contracted orbital launch capacity for 60 satellites as of today.

AST is on track to reach a manufacturing cadence of 6 satellites per month during Q4 2025, and expects to reach an equivalent cadence for micron and phased-array production during Q3 2025, enabled by a 95% vertically integrated manufacturing strategy.

Confirmed the company's message on the 6-satellites-per-month cadence is consistent with last quarter's guidance of 'second half of 2025,' just now made more precise as specifically Q4 2025.

The novel ASIC chip is currently in assembly and testing, with validation/qualification stages nearing completion; the chip is expected to be available for satellite integration as early as June 2025.

The custom ASIC will support up to 10 GHz of processing bandwidth per satellite (10x the current FPGAs), with peak data speeds up to 120 Mbps and support for many thousands of cells per satellite.

The ASIC will be integrated approximately 2 launches after the next (July) launch, as final integration into the satellite build is still being completed; the first production batches use FPGAs.

The Block 2 satellite is a full-blown operational satellite coming off the production line, using the same micron building blocks as Block 1 (just 3.5x larger); the company is producing 40 satellites this year and expects to have roughly 53 satellites' worth of phased arrays completed by year-end.

At a pace of 6 satellites per month (72 per year), AST's basic constellation design is 96 satellites supporting low-band spectrum and 96 satellites supporting mid-band spectrum, with the mid-band/MSS/3GPP spectrum support for the Ligado band already built into the current ASIC and core satellite design.

AST plans to activate initial cellular broadband capabilities in the US, Europe, and Japan on premium low-band spectrum together with AT&T, Google, Rakuten, Verizon, and Vodafone.

Activation has already started in the US, Europe, and Japan, with Rakuten, Vodafone, AT&T, and Verizon all announcing initial video-call usage (the most demanding broadband application); the company will begin lighting up all 5,600 US cells starting in June/July through a beta phase.

The planned beta service will resemble the final full-constellation service as closely as possible (intermittent, since fewer satellites are up) and will offer voice, text, data, email, internet, FaceTime-style video calling; beta is targeted to start this year, consistent with prior guidance.

AST has a definitive commercial agreement with AT&T and is working on commercial agreement details with Verizon; the plan is for beta service by the end of this year and a fully open commercial consumer service in early 2026, covering text, internet data, and access to applications like video conferencing.

AST doesn't only serve areas with zero terrestrial coverage — it also fills in where terrestrial service isn't good enough for a full 5G experience, which requires substantial added capacity; low-band spectrum has inherent allocation limits, so the additional ~45 MHz mid-band spectrum lets the network keep adding subscriber capacity, mirroring how terrestrial operators historically start in low-band and add higher bands as usage grows.

Not really — the focus remains the consumer's user experience; combining both spectrum types is simply a technical way to enable more simultaneous users at higher data rates as part of one unified network.

L-band is already supported in the Android ecosystem as part of the 3GPP standard; with support from AT&T, Verizon, Vodafone, and roughly 50 global operators, AST anticipates 1 to 2 phone-model iterations before the band is broadly available across new phones, which is why the deployment strategy starts with low-band (already in every phone) and adds L-band later in the rollout.

AST now has 6 government contract awards to date; the new Defense Innovation Unit (DIU) contract, announced today, is a communications-use-case award (distinct from the SDA's non-communications use case) expected to yield low tens of millions of dollars of revenue over the next 12 to 18 months.

The DIU recently received $2 billion of additional funding and is a place where the government looks to support new technology quickly across a broad base of agencies; the low-tens-of-millions guidance included a roughly $20 million ceiling, though such initial contract figures can be somewhat artificial as they're often a starting point for expanding use cases.

The US government is already using AST's satellites today, which makes the value of the capability very clear to them and has resulted in 6 ongoing government programs; AST sees a strong opportunity to participate in Golden Dome given the government is already using its satellites for applications relevant to that program.

AST has been building small contracts over recent quarters through broad-based dialogue; the DIU is one clear example of an area receiving a large incremental funding increase, so on net the puts (funding increases) outweigh the takes (funding pressure elsewhere).

Guided Q2 2025 adjusted cash operating expenses to approximately $45 million (similar to Q1) and Q2 2025 capital expenditures to increase significantly, to a range of $230-270 million, primarily reflecting the timing of payments on multiple launch contracts.

Revised the average capital cost per Block 2 BlueBird satellite (direct materials plus launch, for a constellation of over 90 satellites) to a range of $21-23 million, up from the prior $19-21 million estimate, driven by higher launch costs tied to the announced near-term launch schedule and higher direct-materials costs from recently announced tariffs; the estimate remains subject to fluctuation with geopolitical factors.

AST reiterated its belief that operating a constellation of 25 BlueBird satellites can potentially generate positive cash flow from operating activities, despite the increased per-satellite cost estimate.

The cost increase reflects paying somewhat more to pull launch timing forward at a time when launch capacity was harder to secure, in order to get service to market as fast as possible; on materials, some raw materials sourced from abroad are affected by tariffs.

The tariff situation is dynamic and volatile with geopolitical news; the company continues to look at optimizing payload and future launch optionality, and views the modest cost increase (roughly $20 million midpoint to $22 million midpoint) as mitigated by the value of bringing the service to market quickly.

AST issued its first formal revenue guidance: a 2025 revenue opportunity in the range of $50 to $75 million, back-end loaded in the second half of the year, contingent on (1) successful launch/deployment of Block 2 BlueBird satellites tied to US government application milestones, (2) gateway equipment sales to MNO partners, and (3) service revenues from activation of commercial service on currently operational (6 in orbit) and newly deployed satellites; no assurance was given that these objectives will be achieved.

A big contributor is the government business, including the milestone-based $43 million SDA contract tied to work on the 5 Block 1 satellites and the first Block 2 satellite, plus other government revenue; on the commercial side there's expected to be gateway installation revenue and some initial service activations.

Established a new incremental 2025 ATM facility for up to $500 million over the next 3 years to help fund the company's operational plans, to be used in a disciplined, opportunistic fashion.

AST is evaluating a path to an equipment loan facility of between $50 to $100 million as a form of non-dilutive funding to support manufacturing expansion, with more details to come as conversations progress.

The company recently completed initial clearances for non-dilutive funding from quasi-governmental sources, commencing an approximately 6-to-9-month diligence and documentation phase for over half a billion dollars in potential non-dilutive capital from multiple US and international agencies.

The focus is on non-dilutive capital — citing the newly issued $50-75 million second-half 2025 revenue guidance, advancement of non-dilutive financing from sources like IFC and the Ex-Im Bank, and various government/MNO contract and infrastructure prepayments as the priority funding sources.

The ATM gives flexibility but is not the priority; the January 2025 convertible raise already funds the company through 25 satellites (the threshold for non-continuous service in major markets), and for the 60+ and 90+ satellite constellation tiers, the company is weighing equity, debt programs like Ex-Im Bank financing, and manufacturing-equipment financing, while prioritizing partner prepayments and keeping the balance sheet strong given a volatile macro climate.

The Ligado transaction is for AST to acquire usage rights for 45 MHz of mid-band spectrum in the US; definitive agreements were signed toward the end of Q1 (late March), and the approval process is on schedule with more detail expected in coming weeks. AST is structuring financing collateralized specifically by the acquired spectrum usage rights, which will create a modest G&A impact in subsequent quarters via a separate financing package.

Described spectrum as the 'fuel' for the business, split into two phases: low-band spectrum shared with operator partners (AT&T, Verizon, Vodafone, Rakuten, etc.) for fastest go-to-market and best penetration, plus AST's own ~45 MHz mid-band acquisition (Ligado) which, combined with the satellites' size, will enable 120 Mbps per cell and support thousands of cells per satellite; on conclusion of the Ligado transaction, AST would hold one of the largest blocks of sub-6GHz spectrum in the US.

Support for the MSS, L-band, and 3GPP mid-band spectrum is already built into AST's current ASICs and core technology design, so no separate modification approach is needed beyond the existing design (96 low-band + 96 mid-band satellites at a 6-per-month/72-per-year pace).

Because AST's satellites are the largest ever in LEO with a large field of view, fewer gateways are needed than typical constellations — roughly 4 or more applied for in the US, 1 or 2 in most other countries (with a shared continental solution in Europe); no firm year-end gateway count target was given, but US, Europe, and Japan remain the priority markets for faster gateway deployment.

Gateways carry a low margin but are not a loss leader, and there's potential upside to the guidance, though bookings can be lumpy quarter to quarter.

Noted the company watched the Iberian outage with interest as an example of the emergency/infrastructure-failure use case AST's service is designed for; in Europe, the Vodafone joint venture will exclusively distribute AST's service and share ground infrastructure across the continent to support both everyday connectivity and emergency response.

Abel stated the company completed a '$450 million convertible senior note offering,' resulting in nearly $1 billion in cash on the balance sheet, with a cap call transaction increasing the effective conversion price to approximately $45 per share and a 4.25% coupon; the covered cap call limits dilution to existing shareholders to approximately 3% at the effective conversion price.

AST is pursuing non-dilutive financing from quasi-governmental sources, having passed milestones including 'transaction committee acceptance'; if successful, proceeds would fund cost-effective long-term debt for large projects, alongside continued exploration of domestic and global development-institution financing.

Scott said AST is pursuing at least 3 quasi-government facilities, at least one with a delayed-draw/milestone-based structure; that type of thinking also factored into how the company financed its recent spectrum deal.

Andy said AST is well positioned to reach the first threshold of 25 satellites (which starts service) and well beyond, with a pro forma balance sheet of about $1 billion; the company will keep evaluating smart capital-raising opportunities but did not size a specific additional funding need.

Abel said the company is accelerating procurement to complete 40 fully integrated and assembled Block 2 BlueBird satellites, plus components/materials (microns and phased arrays) for more than 50 satellites total.

Abel described the manufacturing footprint as approximately 194,000 sq ft in Midland, Texas, 59,000 sq ft in Barcelona, Spain, and soon an additional 85,000 sq ft in Homestead, Florida.

Answering an investor question about hitting 6 BlueBirds/month, Abel said AST is manufacturing 40 satellites now and working long-lead items for all 53 microns, expecting a rate of 6/month by the second half of 2025; he cited the Barcelona facility here as 50,000 sq ft (versus 59,000 sq ft cited earlier in the same call — an internal inconsistency).

Andy said Q4 2024 capex was approximately $86 million (about $77 million of capitalized direct materials/labor for Block 2 satellites plus facility/equipment expansion in Midland), versus $26.5 million in Q3 2024, and guided Q1 2025 capex to $150-175 million as production and the launch campaign ramp.

Andy reiterated AST is 'becoming a commercial enterprise' and building administrative/manufacturing capacity to support production optimized at about 6 satellites/month in the second half of the year, with investment flowing into Midland, Barcelona, and soon Southern Florida.

Abel confirmed cost-per-satellite guidance is unchanged, still in the $19-21 million range.

Abel said AST completed bring-up and initial validation of its novel ASIC chip, supporting (as stated) 'up to 10,000 MHz, 10 GHz in processing bandwidth per satellite' with peak data speeds up to 120 Mbps; the ASIC is expected in Block 2 BlueBirds later in 2025. (The '10,000 MHz'/'10 GHz' phrasing recurs inconsistently across the call, possibly conflating spectrum and processing-bandwidth figures.)

Abel clarified the ASIC is required only on AST's satellites, not handsets — AST's system works on unmodified phones. Satellites launched using FPGAs initially; the company is now packaging the ASIC for incorporation in the second half of 2025, describing it as ~10 GHz processing capacity, one of the most advanced nodes in space.

Abel said AST signed an agreement for long-term access to up to 45 MHz of lower mid-band spectrum in the US for direct-to-device applications — the largest available block of high-quality nationwide spectrum in the US — complementing existing low-band 850 MHz access via AT&T.

Andy said the Ligado deal is tracking nicely and within the parties' timeframe, though work remains and bankruptcy proceedings need to play out; he called it a strategic initiative with good progress.

Answering a question on remaining risks to full FCC commercial-constellation authorization, Scott said AST is in the final stages of a commercial modification of its existing license, to be followed by a beta service for scale testing and then a paid service.

Abel said AST exercised its option for more launches and now has fully contracted launch capacity for approximately 60 satellites during 2025-2026, supporting continuous service in the US, Europe, Japan, and select other markets.

Answering whether AST would expand beyond SpaceX/Blue Origin/ISRO, Scott said BlueBirds are launch-vehicle agnostic and stackable/configurable across major vehicles; the three suppliers were chosen after a market deep dive, and more providers would be considered if capacity beyond the 60-satellite target is needed.

Abel said Blue Origin's New Glenn can launch up to 8 satellites per flight, roughly doubling Falcon 9 cadence, and AST expects to move to a New Glenn cadence of about one launch every 45 days later in the year.

Abel said combining non-communications government applications with commercial communications revenue enables per-satellite monetization, reiterating AST expects to be cash-flow positive at around 25 satellites, combining non-communications applications with gateway/infrastructure revenue.

Andy confirmed the 25-satellite target holds on an operating basis — capex will flex, but on an operating basis 25 satellites generates sufficient opportunities for free cash flow.

Abel said AST entered the year with about $1 billion in cash, is scaling to 6 satellites/month (~72/year), and needs 45-60 satellites for continuous US service, funding buildout increasingly via revenue rather than equity.

Andy guided Q1 2025 capex to $150-175 million and Q1 2025 adjusted cash opex to $40-45 million, consistent with Q4 2024 levels.

Scott confirmed the capability is non-communications, consistent with AST's operating frequencies, but declined to define it further; the $43 million is expected to be earned over roughly the next 12 months off the 5 commercial satellites and the first Block 2 satellite.

Scott said SDA contract revenue recognition should generally be modeled as linear over ~12 months, with a possible slight lag in the first couple of months.

Scott said the SDA contract's rev-rec is milestone-based given it's technology evaluation; AST prefers firm-fixed-price (not cost-plus) and tends toward the service side rather than hardware sales given its dual-use architecture, while remaining flexible on structure.

Abel said AST has agreements with approximately 50 mobile network operators globally, representing nearly 3 billion existing subscribers; initial service is planned with AT&T and Verizon (US), Vodafone (UK and Turkey), and Rakuten (Japan).

Scott said the first half of 2025 should show gateway sales/bookings bringing in cash and revenue, serving as a leading indicator of which markets see initial service revenue.

Scott said total European connections across all countries are about 600+ million, versus previously only Vodafone's pan-home markets; SatCo extends coverage from ~10 countries to roughly 3x that, adding significant new countries and operator potential, and supports a Europe-based operator regulators and MNOs can trust.

Guidance for Q4 2024: capital expenditures expected around $100 million as satellite production and launch contract payments ramp; adjusted cash operating expenses (excluding remaining ASIC costs) expected in a range of $30-35 million, with an expectation of trending to the low end.

AST has filed a formal application for a long-term export credit agency debt financing package, intended to source cost-effective long-term debt to fund large projects; the company said this work is 'progressing nicely' and will provide updates as appropriate.

AST is prioritizing non-dilutive prepayments from MNO partners and other strategic capital sources over traditional credit financing going forward, though it will continue to consider options for future credit facilities.

In the US, AST plans to deliver coverage via more than 5,600 cells on premium low-band spectrum, targeting close to 100% nationwide coverage on a non-continuous basis supported initially by the five in-orbit satellites.

Blue Origin's New Glenn rocket offers a 7-meter fairing (double the payload volume of 5-meter-class systems) and can carry up to 8 of the largest Block 2 satellites per launch, roughly double the ~4 per Falcon 9 launch; New Glenn is planned to become operational this year (2024).

Average estimated cost of direct materials and launch expense per Block 2 satellite is now expected to be $19-21 million, up from a prior estimate of $16-18 million, due to actual recently-contracted launch costs.

Management believes operating a constellation of 25 Block 2 satellites could enable additional funding sources, potentially including free cash flow, to help fund buildout of the remaining constellation.

Expected launch cadence toward the 60-satellite target is roughly '1, 4, 4, 8, 8, 8' across the secured launch vehicles; New Glenn is designed to be reusable up to 25 times, with the first launch scheduled this year (2024).

For the ISRO launch, AST expects to use the largest available ISRO rocket for the first launch, then shift focus to New Glenn, SpaceX, and other providers capable of launching its satellites.

The near-term focus is launching satellites with either the ASIC or the FPGA configuration to achieve coverage; the next launch will still use the FPGA configuration (same as Block 1), with ASIC-equipped satellites expected in subsequent launches later in 2025, roughly mid-2025 to Q3 2025.

Asked whether the 'hundreds of millions' government revenue figure implies hardware or service revenue, Scott said the contracts are primarily services contracts, though the company could in theory sell satellites over time; AST sees itself primarily as a manufacturer that makes its technology operational for both government and commercial customers.

With a network of 45-60 satellites, AST estimates initial network capacity in the hundreds of millions of potential subscribers, targeting the most valuable wireless markets globally including the US, Europe, Japan, and the US government.

AST SpaceMobile has a 7-day contracted orbital launch window in the first half of September; current expectation is to launch in the first half of September, though this depends on factors outside the company's control including weather.

With these first 5 satellites, AST SpaceMobile is targeting nearly 100% geographical coverage of the continental US using premium 850 MHz low-band spectrum; after a few months of in-orbit service activation, initial service for AT&T and Verizon beta test users will start with 5,600 cells nationwide, providing non-continuous coverage.

After launch, the company anticipates a few months to activate service on the first 5 satellites; ground infrastructure is already prepared, with initial usage split between government users and MNO partners (US, Vodafone, and prepaying investors) starting in parallel.

AST SpaceMobile continues to consider using the balance of its senior credit facility (gross $51.5 million available) but is prioritizing non-dilutive strategic prepayments from MNO partners over drawing the facility; there are currently no plans for the remainder of 2024 to pursue an underwritten public equity offering.

The company continues to work on developing a financing package from export credit agencies to source cost-effective, long-term debt funding for large projects, and will update on progress.

Priority remains prepayment relationships with MNO partners as an effective non-dilutive capital source; the company also expects potential meaningful capital from milestone-linked payments with Vodafone, AT&T, and Verizon, and reiterated no plans for a public equity offering through the end of 2024.

Two new US government contract awards have come in recent months to one of the company's prime contractors; like the February contract these represent relatively small revenue individually but seek to evaluate potential for full-scale, multi-year contracted services; contracts are still being finalized.

Said the FCC plays a global leadership role and progress with international partners has been positive with no showstoppers; upcoming milestones include filings on ground gateways, test campaigns as Block 1 activity begins, and -- the big one -- SCS (Supplemental Coverage from Space) rights filings in the US with the FCC alongside AT&T and Verizon.

The company is continuing planning and initial production of the first 17 Block 2 satellites, to be built in phases with initial launch targeted for Q1 2025; equipped with the ASIC, these satellites will be about 2,400 square feet, supporting up to a 10x improvement in processing bandwidth versus Block 1 satellites.

Using the 3 bits/hertz demonstrated on BlueWalker 3 and planned commercial capacity of up to 40 MHz per beam, the company projects performance of up to 120 megabit peak data rates.

No -- the company is already building parts for the next 17 satellites and started this a few months back; the first 4 launches will be FPGA-based, the subsequent Block 2 satellites will be ASIC-based (a tenfold improvement over FPGA), and the company will not wait for deployment confirmation to continue building.

The satellite system is designed to be launch-agnostic across large/medium launch providers; depending on configuration and vehicle, expect anywhere from 4 per launch (larger Block 2s) up to 8 per launch.

The 17 satellites refers to subsystems being produced on a staggered timeline starting with long-lead items; production cadence is accelerating, helped by lessons from the first 5 commercial satellites, and the company now vertically integrates and controls IP/manufacturing for about 95% of satellite subsystems.

Confirmed still tracking for Q1 2025, with no delays or issues cited.

Cost guidance per satellite is being maintained, though the company continues seeking cost improvements as it approaches 95% vertical integration; launch campaign starts Q1 with additional launches following as satellites and launch slots become available.

No -- the 2,400-square-foot Block 2 satellite size is independent of whether it's equipped with FPGA or ASIC; launches can continue on FPGA as long as needed, so ASIC is not a launch prerequisite, though it's desired for its 10x capacity increase. The first ASIC die was received several weeks ago and is being incorporated into the Micron satellite design.

Adjusted cash operating expense guidance for the remainder of 2024 remains $30-35 million per quarter, with expectation of trending toward the low end of that range as Block 2 design nears completion and focus shifts to scaled production; this guidance excludes approximately $15 million of ASIC tape-out/initial production costs, which will be recognized as R&D expense in subsequent 2024 quarters.

The US is the largest, most developed wireless market and will be prioritized (AT&T and Verizon); next priority goes to MNOs/investors paying prepaid revenue, including Vodafone markets and Rakuten in Japan, then new prepaying MNOs. The 50-degree launch inclination covers all latitudes from 59°N to 59°S, letting the company select regions per prepayment priorities.

Said there is no pricing or go-to-market strategy to report at this time and that the referenced article was misquoted; the company is excited about its revenue-share model and adoption/wallet-share potential but is not giving pricing guidance, though go-to-market planning has accelerated.