Despite Satellite Launch Setbacks, U.S. Startup Accelerates Direct Satellite Network for Mobile Phones

AST SpaceMobile, Inc. (NASDAQ: ASTS) reported first‐quarter 2026 revenue of $14.7 million—roughly 20 billion KRW—and reaffirmed its full-year guidance of $150–200 million, or about 210–280 billion KRW. The company highlighted several key milestones: the additional deployment of BlueBird satellites; plans to launch BlueBird 8–10 aboard a Falcon 9 rocket in mid-June; progress on mass producing BlueBird 11–33; a successful test transmitting data directly to a commercial smartphone at 98.9 Mbps; and FCC authorization for commercial service using up to 248 satellites across the U.S. Despite a net loss of $191 million (approximately 270 billion KRW) in the quarter, AST SpaceMobile emphasized its strong liquidity position—with cash and equivalents of about $3.5 billion (4.9 trillion KRW)—and reaffirmed its goal of placing roughly 45 satellites into orbit in 2026.

In a recent New Glenn 3 launch, however, BlueBird 7 was inserted into a lower-than-planned orbit due to an upper-stage anomaly. The satellite cannot sustain long-term operations under its own propulsion and is expected to re-enter the atmosphere. AST SpaceMobile stressed that insurance will cover the loss, and that this incident does not affect its overall deployment schedule or strategic objectives. Additionally, Chief Financial and Legal Officer Andrew Martin Johnson filed a routine insider report disclosing the withholding of shares to cover taxes on the vesting of 70,000 RSUs—a transaction distinct from an open-market sale.

AST SpaceMobile also secured final FCC approval to offer commercial “direct-to-device” service—often called supplemental coverage—nationwide by leveraging spectrum from U.S. carriers such as AT&T and Verizon. Following the New Glenn setback and Q1 results that fell short of analyst expectations, the stock has experienced heightened volatility, with sharp swings before and after the earnings release.

Based in Texas, AST SpaceMobile is building a direct-to-device network that links existing terrestrial frequencies to low-Earth-orbit satellites, enabling standard smartphones to connect without ground stations. The company competes with SpaceX’s Starlink, Amazon’s Project Kuiper, Globalstar and others in this emerging space-based telecom sector, which promises to fill coverage gaps and address disaster-relief and defense needs while requiring substantial capex and intense regulatory and spectrum licensing efforts.