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AT&T and AST SpaceMobile $ASTS Complete First Satellite-Based Call and Text

The race to bridge connectivity gaps through satellite technology has reached a significant turning point. AST SpaceMobile, in collaboration with AT&T, has recently completed a pioneering voice call and text message transmission using satellite infrastructure directly to a standard mobile device. This development, achieved via AST’s Block 1 satellites and AT&T’s spectrum, marks a notable step towards integrating space-based networks with terrestrial mobile systems, potentially reshaping how remote and underserved areas access communication services. The implications for both consumer access and industry competition are substantial, as this technology promises to bypass traditional infrastructure limitations.

Technical Achievement and Strategic Implications

The successful test, conducted in mid-2025, demonstrates the feasibility of direct satellite-to-cell communication without the need for specialised hardware on the user’s end. This is a critical advancement, as it leverages existing smartphones and network spectrums, reducing barriers to adoption. AST SpaceMobile’s approach with its Block 1 satellites, which are part of a broader plan to deploy a constellation of low-earth-orbit satellites, aims to provide broadband-level connectivity globally. Reports indicate that this test involved a native voice call over Long-Term Evolution (VoLTE) standards and a standard SMS, routed through AT&T’s core network, validating the integration with existing mobile infrastructure.

Strategically, this positions AST SpaceMobile and AT&T as frontrunners in the satellite-to-cell domain, particularly as competitors like T-Mobile, in partnership with SpaceX’s Starlink, roll out their own satellite texting services in 2025. While T-Mobile’s offering currently focuses on basic messaging with limited data capabilities, AST SpaceMobile’s broader ambition includes voice, data, and video services, as evidenced by earlier milestones such as a satellite-based video call completed in February 2025. This suggests a more comprehensive service offering that could challenge existing market dynamics over the next few years.

Financial and Operational Context

AST SpaceMobile’s operational roadmap provides further insight into the scalability of this technology. The company has outlined plans to launch additional satellites throughout 2025 and 2026, with the first Block 2 BlueBird satellite scheduled for July 2025. These next-generation satellites are reportedly three times larger and boast ten times the data capacity of their predecessors, indicating a significant ramp-up in service potential. Financially, AST SpaceMobile secured a $550 million credit agreement in July 2025, providing the capital needed to support this aggressive deployment schedule. This funding, coupled with commercial agreements with major carriers like AT&T and Verizon, which together cover a substantial portion of the US market, underpins the company’s growth trajectory.

For AT&T, this partnership aligns with its broader strategy to expand coverage in remote and off-grid locations, a segment historically underserved by traditional cell towers. The revenue-sharing model with AST SpaceMobile, extending through 2030, ensures a long-term commitment to this technology, with potential upside as adoption grows. Historical data for AT&T shows consistent investment in network expansion; for instance, capital expenditure in Q4 2024 reached $5.8 billion, a figure in line with ongoing infrastructure investment in 2025 as satellite integration progresses.

Competitive Landscape and Market Risks

The competitive landscape in satellite-to-cell services is intensifying. As noted in recent industry updates, T-Mobile’s Starlink-powered service, launched in July 2025, offers texting and limited data for a monthly fee, with plans to expand data access through third-party applications by October 2025. This early-mover advantage could capture market share among price-sensitive consumers. However, AST SpaceMobile’s focus on broadband capabilities and direct integration with carriers like AT&T and Verizon may offer a more robust solution in the long term, particularly for enterprise and government applications. A recent filing with the FCC also highlights AST SpaceMobile’s intent to target first responders, a niche but critical segment for reliable connectivity.

Nevertheless, risks remain. The capital-intensive nature of satellite deployment, coupled with regulatory hurdles and technical challenges in scaling coverage, could delay commercial rollout. Sentiment on platforms like X, including commentary from users following the sector, suggests optimism about AST SpaceMobile’s potential to outpace competitors within a year or two, though such views are speculative and not a substitute for hard data. Market adoption will ultimately hinge on service reliability and cost competitiveness, areas where concrete outcomes are yet to be fully tested.

Conclusion

The successful voice call and text transmission via AST SpaceMobile’s Block 1 satellites, in partnership with AT&T, represents a tangible step towards a future where satellite connectivity is seamlessly woven into everyday mobile networks. While challenges in scaling and competition persist, the technical and strategic groundwork laid in 2025 positions AST SpaceMobile as a serious contender in this nascent field. Investors and industry observers will be keenly watching the rollout of Block 2 satellites and broader commercial adoption over the coming quarters, as these will determine whether this technology can deliver on its promise of global connectivity. For now, this milestone serves as a reminder that the boundaries of communication infrastructure are, quite literally, being pushed into orbit.

References

  • AST_SpaceMobile [@AST_SpaceMobile]. (2025, February 24). History in the making! We have successfully made the first-ever satellite-based video call using an everyday, unmodified smartphone [Post]. X. Retrieved from https://x.com/AST_SpaceMobile/status/1894045276567998680
  • AT&T. (2024, May 16). AT&T and AST SpaceMobile Sign Definitive Commercial Agreement. Retrieved from https://about.att.com/story/2024/ast-spacemobile-commercial-agreement.html
  • AT&T. (2024, September 12). AST SpaceMobile Launches First Five Commercial Satellites. Retrieved from https://about.att.com/story/2024/ast-spacemobile-launches-first-five-commercial-satellites.html
  • AT&T. (2025, February 24). AT&T and AST SpaceMobile Take Connectivity to New Heights. Retrieved from https://about.att.com/story/2025/ast-spacemobile-video-call.html
  • AT&T Inc. (2025, July 18). AT&T Q2 2025 Financial Results. Retrieved from https://investors.att.com/~/media/Files/A/ATT-IR/financial-reports/quarterly-earnings/2025/q2/2q25-earnings-release.pdf
  • Bloomberg. (2025, July 23). AST SpaceMobile Launch Schedule and BlueBird Info. Retrieved from https://www.bloomberg.com/news/articles/2025-07-23/ast-spacemobile-bluebird-satellite-launch-schedule
  • Blumenthal, E. (2025, July 23). Starlink Texting Launches on Big Three Phone Carriers Today. Check If You’ll Get It for Free. CNET. Retrieved from https://cnet.com/tech/mobile/starlink-texting-launches-on-big-three-phone-carriers-today-check-if-youll-get-it-for-free
  • FCC. (2025, July 20). AST SpaceMobile Ex Parte Notice – First Responder Market Plans. Retrieved from https://www.fcc.gov/ecfs/document/20250720-10123
  • Hughes, T. (2024, May 21). AST SpaceMobile: A New Asset Class Held Down by Outdated Models. MarketBeat. Retrieved from https://marketbeat.com/originals/ast-spacemobile-a-new-asset-class-held-down-by-outdated-models
  • King Tut [@kingtutcap]. (2025, July 25). $ASTS is already showing off video calls (and has been for 1.5 years)… T-Mobile / Starlink on the other hand… [Post]. X. Retrieved from https://x.com/kingtutcap/status/1922027625775612029
  • Mobile World Live. (2024, May 16). AT&T, AST SpaceMobile draw closer to sat-to-phone launch. Retrieved from https://www.mobileworldlive.com/att/att-ast-spacemobile-draw-closer-to-sat-to-phone-launch/
  • Mobile World Live. (2025, July 23). AST SpaceMobile, AT&T Lean into First Responders. Retrieved from https://mobileworldlive.com/ast-spacemobile/ast-spacemobile-att-lean-into-first-responders
  • Satellite Today. (2024, May 16). AT&T Signs Commercial Agreement With AST SpaceMobile for Satellite-to-Cell Service. Retrieved from https://www.satellitetoday.com/connectivity/2024/05/16/att-signs-commercial-agreement-with-ast-spacemobile-for-satellite-to-cell-service/
  • spacanpanman [@spacanpanman]. (2024, October 23). $ASTS hitting milestone after milestone [Post]. X. Retrieved from https://x.com/spacanpanman/status/1829160156795486282
  • spacanpanman [@spacanpanman]. (2025, February 1). The Block 2 BlueBird satellites are 3x bigger and have 10x the data capacity of the Block 1 satellites [Post]. X. Retrieved from https://x.com/spacanpanman/status/1886533011841413405
  • spacanpanman [@spacanpanman]. (2025, February 1). First Block 2 BlueBird satellite launch scheduled for July [Post]. X. Retrieved from https://x.com/spacanpanman/status/1886789115166728250
  • TeslaNorth. (2025, July 23). T-Mobile Launches Starlink-Powered Satellite Service for Phones. Retrieved from https://teslanorth.com/2025/07/23/t-mobile-launches-starlink-powered-satellite-service-for-phones
  • TipRanks. (2025, July 18). AST SpaceMobile Secures $550M Credit Agreement. Retrieved from https://www.tipranks.com/news/company-announcements/ast-spacemobile-secures-550m-credit-agreement
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