AST SpaceMobile stock jumps on FCC approval

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AST SpaceMobile (ASTS) shares rally after the company says it received temporary approval from the Federal Communications Commission (FCC) to test with AT&T (T) and Verizon (VZ).

Julie Hyman and Josh Lipton explain what the approval means for the satellite company and its investors.

To watch more expert insights and analysis on the latest market action, check out more Market Domination here.

This post was written by Naomi Buchanan.

00:00 Speaker A

All right, let's look at AST Space Mobile as well. That company's saying it has been granted special temporary authority by the Federal Communications Commission for testing with AT&T and Verizon. Now a little bit of context here. This is basically start they can be with Starlink is what AST uh Space Mobile does. So they provide um connectivity to phones from satellites in places that might not otherwise have that connectivity. And so this then raise the possibility that there will be more folks who have AST Space Mobile as a provider in the United States at some point.

00:51 Speaker B

I saw executives quote saying, "We are now accelerating our path to commercial activity, starting with testing service with off-the-shelf cellular handsets on AT&T and Verizon networks." The reports I was reading, Julie, sort of basically means, listen, they can now this allows their their commercial satellites to provide voice and data and video capabilities, right? On AT&T and Verizon's premium low-band wireless spectrum.

01:33 Speaker A

Yeah, and this has been a big week for AST Space Mobile, actually. On the 29th, they announced, um, a Vodafone contract that they're going to bring commercial satellite to mobile broadband service to customers in Europe at some point during this year. So that this news today following on that news, and those shares, by the way, up a cool like 600% over the past year or so.

02:15 Speaker B

That's a move.