AST SpaceMobile Signs Three Brazilian Carriers for 700 MHz Satellite-to-Phone Service

Deal Structure Shifts Spectrum Risk to Carriers

AST SpaceMobile signed a proposed partnership with Brazilian regional carriers Brisanet, Unifique and iez! Telecom on October 23 to deliver satellite voice, data and video to unmodified smartphones using the operators' 700 MHz spectrum. The three carriers will fund and build the terrestrial ground gateways linking their networks to AST's low-Earth-orbit constellation. The arrangement requires authorization from Brazil's telecom regulator Anatel and possibly antitrust approval from Cade before commercial launch.

The model differs from standalone satellite connectivity: AST supplies the space segment, while the carriers contribute licensed mobile spectrum, ground infrastructure and existing subscriber relationships. That creates regulatory and execution dependencies that pure-play satellite operators do not face, but it may also enable tighter integration with mobile plans and eliminate the need for specialized terminals or applications.

Regulatory and Infrastructure Dependencies

Anatel approved AST SpaceMobile to operate 248 LEO satellites in Brazil in May. Direct-to-device services currently operate under a regulatory sandbox extended in August through April 2029 or until permanent rules take effect. The three carriers acquired their 700 MHz holdings in May in 10+10 MHz blocks after spectrum from a 2021 5G auction was returned.

One report indicates testing will begin in November and run for two years in the operators' service areas, but the parties have not disclosed pricing, gateway investment amounts, allocation among operators, launch dates or final commercial terms. The service remains proposed, not operational.

Because the offering would use carrier-controlled spectrum within a sandbox, permanent operating rules could alter geographic coverage, interference protections, licensing conditions or commercial terms before deployment. Enterprises should treat availability, performance guarantees and emergency-service support as unresolved until Anatel publishes final framework regulations.

Competitive Implications for Remote Coverage

The agreement gives AST access to three regional mobile operators and broadens its potential Brazilian distribution footprint. It competes directly with Starlink's satellite services and challenges terrestrial 4G and 5G expansion by using carrier spectrum to cover locations beyond conventional cell-site reach.

The carrier-integrated model may prove more compatible with existing mobile subscriptions than standalone satellite terminals, but it introduces coordination risk. Starlink-style services require no spectrum-sharing agreements, no carrier gateway deployment and no multi-party regulatory approvals. AST's approach trades execution simplicity for potential subscriber reach through carrier channels.

Enterprise Procurement Considerations

Enterprises operating on highways, in remote areas or across regions with weak terrestrial coverage could eventually gain a backup communications path for smartphones and field personnel without distributing satellite terminals. That assumption depends on final service availability, pricing and performance — none of which has been announced.

Buyers should not budget for a confirmed product. The immediate planning issue is potential future spending on hybrid mobile and satellite connectivity, not a purchase-ready service. No quantified throughput, latency, availability or outage-reduction benchmarks have been disclosed, so performance claims cannot yet support a vendor-selection decision.

Procurement risk stems from the proposal's contingent status. Final contracts, gateway deployment, testing and regulatory approvals must occur before service becomes available. Enterprises should compare any eventual AST offer with terrestrial private 5G, conventional carrier roaming, Starlink-equipped sites and other direct-to-device partnerships when commercial terms and service-level commitments are published.

What to Watch

Monitor Anatel's licensing decisions and the publication of permanent direct-to-device regulations before April 2029. Track whether the three carriers disclose gateway investment amounts, commercial pricing or enterprise service plans during the reported November-to-2028 testing window. Evaluate whether AST publishes capacity, latency or availability data that enables comparison with alternative connectivity methods.

The concrete facts are the 700 MHz spectrum assignment, planned gateway investment, Anatel's 248-satellite authorization, the sandbox extension to April 2029, and a reported November two-year test window. Pricing, capacity, service levels and customer adoption remain undisclosed. Enterprises should treat this as a regulatory and spectrum development with incomplete commercial evidence, not a deployable connectivity option.