AST SpaceMobile falls as report says SpaceX discussed Boost Mobile deal

ASTS falls on competition concerns

Yahoo Finance reports that shares of AST SpaceMobile fell 11% on Monday after market concern grew around reports that SpaceX is in talks with EchoStar about Boost Mobile. The article says the move reflected worries about added competition in direct-to-device wireless service.

Reported SpaceX-EchoStar discussions

According to The Washington Post, SpaceX discussed a deal with EchoStar that could involve buying Boost Mobile or gaining access to its network so SpaceX can launch its own wireless service. The report says Boost Mobile’s network is currently leased from AT&T and T-Mobile, and that any proposed service may need their consent. Yahoo Finance says ECHO stock was up 2% at the time of writing.

Why the report matters for AST SpaceMobile

Yahoo Finance says the possible deal would strengthen SpaceX’s direct-to-device plans and increase pressure on AST SpaceMobile’s business model. AST SpaceMobile is building a satellite network intended to work alongside existing wireless carriers. The company, according to the article, partners with operators such as AT&T and Verizon rather than trying to replace them.

SpaceX’s wireless ambitions

The article says SpaceX is aiming to become a standalone wireless competitor. Yahoo Finance reports that SpaceX recently bought low-band spectrum that would help combine Starlink satellites with what Elon Musk has described as a “major mobile carrier.” The piece also says Bloomberg reported last month that SpaceX is pursuing agreements for at least 80,000 cell sites across the United States and is speaking with at least one major cellular infrastructure company. Bloomberg also reported that Crown Castle was approached, alongside American Tower and Vertical Bridge being named among major tower owners.

Retail trader reaction

Yahoo Finance says Stocktwits sentiment around ASTS and SPCX stayed in bearish territory over the past 24 hours, with low message volume. Sentiment around ECHO, by contrast, moved from bearish to bullish.