AST SpaceMobile (ASTS) shares rise as AT&T, Verizon, and T-Mobile form satellite joint venture

TLDR

• AT&T, Verizon and T-Mobile are forming a joint venture to use satellite networks to eliminate coverage dead zones in the United States.
• AST SpaceMobile stock rose nearly 2.1% on the news, after earlier rising nearly 5%.
• AST already has deals with AT&T and Verizon and sees the joint venture as a validation of the direct-to-device satellite model.
• The company needs between 45 and 60 satellites to launch commercial service, but currently has only six in orbit, hampered by a Blue Origin launch failure in April.
• AST missed Q1 2026 estimates badly — EPS came in at -$0.66 versus expected -$0.21 — but reiterated its $1 billion revenue target for 2027.

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AT&T, Verizon and T-Mobile — three companies that typically spend their days trying to destroy each other — announced Thursday that they are forming a joint venture to eliminate cellular dead zones across the United States using satellite-based wireless networks. The three carriers plan to pool their spectrum resources to enhance capacity and help satellite operators reach more customers.

The deal still needs to be finalized, and each company can continue its communications business independently.

For AST SpaceMobile, the news arrived well. ASTS stock rose 2.1% in early trading on Thursday, after jumping nearly 5% shortly after the announcement.

AST SpaceMobile, Inc., ASTS

Timing is important. AST already has deals with both AT&T and Verizon to bring service directly to consumer devices – without the need for special hardware. The new joint venture effectively underscores what AST has been building for: 5G-quality voice, data and video coverage delivered from low Earth orbit.

CEO Abel Avillan described the move as a positive sign. “AST SpaceMobile is excited to see how the industry is preparing to enable space-based cellular broadband connectivity for every American,” he said. “We plan to be a key enabler of this transformation.”

The race to get satellites into orbit

There is one big catch. AST has only six satellites in orbit at the moment, and needs between 45 and 60 satellites to provide commercial service in northern latitudes. The company aims to achieve this goal by the end of 2025.

That timeline took a hit in April when Blue Origin botched a launch mission intended to land a target Ast Satellite in orbit. The carriers made clear in their statement that they expect to work with multiple satellite providers, so AST can’t afford to fall far behind.

Competitive pressure is real. SpaceX promises to offer Starlink Mobile service by the end of 2027, and Amazon is moving into space after its acquisition of Globalstar, targeting entry in 2028.

William Blair, who maintained a market perform rating on the ASTS this week, noted that the stock had been volatile – falling 10% after hours in one recent session, only to reverse a 10% gain from the previous day. Despite this volatility, ASTS is up nearly 204% over the past year and carries a market cap of about $32 billion.

First quarter results miss the mark

AST’s recently announced first-quarter 2026 results fell well short of expectations. The company reported EPS of -$0.66 versus expected -$0.21. Revenue was $14.7 million, compared to analyst estimates of $37.48 million.

Despite the error, AST reiterated its revenue guidance and pointed to advances in satellite technology, which helped stabilize investor confidence following the report.

The company also reiterated its $1 billion revenue target for 2027 in its earnings call. William Blair said he believes positive developments have occurred regarding the investigation into the New Glenn rocket anomaly, although AST is limited in what it can publicly disclose.