AST SpaceMobile, Inc. (NASDAQ:ASTS) Q4 2022 Earnings Call Transcript

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Landon Park: Okay. And then just last one for me. I’m wondering if you’ve had any discussions with MSS spectrum license holders for potential partnership. I think there’s certain obvious benefits to having a global unified band that can potentially be embedded in smartphones moving forward. Have you given any thoughts to potentially pursuing a partnership along those lines?

Abel Avellan: Well, what I can say at this moment, our satellite has the ability to support both 3GPP and MSS spectrum. We have designed that from the very beginning, both our ASIC, our antennas, our transmitters, our receivers, which take years to develop, they already incorporate a capability for a multitude of bands, no one in particular. But our view is that the real business and the biggest potential, it is reducing the spectrum from the MNO, for a very, very simple reason. There is gigahertz capacity or spectrum allocated to cellular and the very few 10s of megahertz allocated to MSS. So our view is focus on 3GPP spectrum that we reuse front terrestrial in a chair matter or in a dedicated matter in order to assure a weaker connectivity per country. But having said that, that doesn’t discard our capacity and our ability to also overlay MSS spectrum to what we believe is the core and the most important market, which is reuse in 3GPP spectrum.

Landon Park: So just a follow-up there. So when we think about use cases in terms of potentially being fringe use cases and populated suburban areas where there are fill dead spots, but they’re relatively small. Would you be able to use carrier spectrum in small dead spots like that? Or will it create interference issues with the terrestrial networks?

Abel Avellan: Yes. We had an approach with the 3GPP spectrum, which is shared with terrestrial that one of the big advantages of having a very large array allowed us to geographically distinct and reuse the spectrum. So we don’t need dedicated spectrum on a national basis. We can parse it out by regions, by sales, by beans. And then we work with the operators in basically a frequency plan that allowed us to cover the very small holes in the network as of the very large holes in the network. So that’s the way how we do it. Of course, we do this in complete coordination and with the cellular operator, which is at the end, beholder of the spectrum.

Landon Park: How small — I mean, are those — because I mean, some of these gaps are very, very small and in relatively populated suburban areas. So how tight can you get your beams in terms of filling in some of those gaps?

Abel Avellan: Yes. It is not only by separating through the beams. So our beams get to around 24 kilometers, and that’s a matter of 24/12 depending on demand. And then easy gaps are smaller than that, then basically, it’s a frequency plan coordination that is done together with the operator. So it’s basically tonal spectrum into those areas. So when we think about it, we think about it 3GPP dedicated spectrum on 3GPP, non-dedicated of chair spectrum, but both 3GPP spectrum already owned and operated by the operators.

Landon Park: So under that scenario, the operator would have to vacate certain frequencies in those small pockets on a wider basis in order to allow you to operate, right? Is that allow under the way FCC rules are being written?

Abel Avellan: Yes.

Landon Park: That’s how it would it function?

Abel Avellan: Yes, that’s our expectation. Our expectation is that that the operators with our system, they will be able to, in the most efficient way that exists today, given the size of our arrays, we’ll be able to chair spectrum in a dedicated or a chair matter in order to cover every single gap in their correspondent territory.

Operator: Thank you. At this time, I’m showing no further questions. I would now like to turn the call back over to Scott Wisnewski for any closing remarks.

Scott Wisniewski: Thank you, everyone. And our company is building the first and only space-based cellular broadband network and is designed for use of the phone in your pocket today. We’re very excited for the path ahead for AST SpaceMobile. Thank you to our shareholders and analysts for their questions, and have a great weekend, everybody.

Operator: Thank you. This does conclude today’s teleconference. We appreciate your participation. You may disconnect your lines at this time. Enjoy the rest of your day.

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