- Ligado is seeking FCC approval of its L-band license modification so that it can pursue a partnership with AST SpaceMobile
- One of the arguments in favor of the application is the need for competition beyond SpaceX’s rapidly expanding D2D satellite footprint
- AT&T and Verizon are backing AST SpaceMobile as the telecom industry seeks to prevent an Elon Musk-dominated D2D market
Nobody, except maybe Elon Musk & Friends, wants SpaceX/Starlink to be the only satellite provider lording over the direct-to-cell (D2C)/direct to device (D2D) market.
That’s the general gist of one of the ideas put forth by Ligado in its application to the Federal Communications Commission (FCC) to modify its L-band satellite license so that Ligado can work with AST SpaceMobile.
Ligado wasn’t quite as direct in its language, but here’s how the satellite company put it in its application to the FCC: “Approval of this Modification Application is all the more important given SpaceX’s announcement of its agreement to purchase EchoStar’s S-band spectrum, since the Commission will want to ensure the market for space-based mobile broadband is competitive, dynamic and responsive to the increasing threat from China.”
SpaceX and EchoStar struck a deal in September for SpaceX to acquire EchoStar’s S-band AWS-4 and H-block spectrum licenses for about $17 billion in a cash and stock deal. They followed that up with another agreement in November for SpaceX to buy EchoStar’s unpaired AWS-3 licenses for about $2.6 billion in SpaceX stock.
Ligado mentions SpaceX about a dozen times – mostly as a footnote – in its 22-page FCC filing, so it’s just a tiny part of the overall argument for approval. But it just so happens that the “please don’t facilitate a Musk D2D monopoly” story line figures prominently in a report that Recon Analytics’ founder Roger Entner shared with Fierce today.
It’s pretty obvious that SpaceX is miles ahead in the D2D space, the report notes. AST SpaceMobile has only a handful of satellites in orbit and no commercial service. SpaceX has more than 600 D2D satellites in orbit and it launched a commercial service with T-Mobile in October after a long time in beta.
SpaceX’s deal with T-Mobile comes with one year of exclusivity, which runs out either in late 2025 or early 2026.
AT&T, Verizon back AST SpaceMobile
A big part of what’s keeping AST SpaceMobile in the race is backing by AT&T and Verizon. AT&T was an early partner with AST SpaceMobile; Verizon solidified its stance in October with a definitive commercial agreement.
According to the Recon Analytics report, AT&T’s decision to lock into a binding agreement with AST SpaceMobile through 2030 “represents a deliberate erect middle finger strategy” rather than a forced reaction to market constraints. “Management fears that utilizing Starlink would ultimately accelerate Elon Musk's ambition to become a full-fledged service provider, leading to their own disintermediation as network operators.”
Consequently, “AT&T is willing to endure the short-term pain of AST’s operational delays to nurture a competitor that preserves their network sovereignty, calculating that the cost of funding a future Starlink monopoly far exceeds the risks of supporting a slower alternative,” the report says.
Verizon’s October 2025 agreement, accompanied by a $100 million investment, is structured differently. “While AT&T is the anchor tenant, Verizon is the late-stage validator. Verizon sees the T-Mobile exclusivity expiry approaching and faces a binary choice: sign with Musk in 2026 and admit defeat, or prop up AST to create leverage,” according to the report.
In short, AST SpaceMobile is the “not-SpaceX” play. “Its existence is a structural requirement for a telecom industry that refuses to accept a SpaceX monopoly. With definitive carrier agreements, government backing and a fully funded initial constellation, AST is positioned to survive,” the report states. “However, the expiration of T-Mobile’s exclusivity in 2026 starts a countdown clock: AST must demonstrate operational parity with Starlink before AT&T and Verizon are tempted to cross the aisle.”
Getting access to Ligado’s 40 MHz of spectrum is seen as one way AST SpaceMobile can fortify its game plan, providing a boost in bandwidth to support its broadband-from-the-sky aspirations in the U.S. and Canada.
“Direct‑to‑device is no longer a concept – it’s a competitive market taking shape," said Ligado Networks Chief Marketing and Strategy Officer Scott Wiener in a statement provided to Fierce. "By combining our licensed L‑band MSS spectrum with a constellation about to be launched, the public can get the benefit of space‑based 5G directly to smartphones. This filing ensures U.S. consumers have real choice in how they connect, and it keeps the U.S. ahead in the global race for D2D.”
For its part, AST SpaceMobile’s commentary on the Ligado application was short and sweet.
It submitted a one-page, three-paragraph letter endorsing Ligado’s application. “AST SpaceMobile looks forward to working with the Commission and Ligado to ensure full and efficient use of this L-band spectrum and enable space-based mobile broadband services across the United States and North America,” the company concluded.