SpaceX criticizes AST SpaceMobile as a “Meme Stock” to stop mobile Starlink

In a rare move, SpaceX is attacking a major competitor, AST SpaceMobile, for allegedly spreading misinformation aimed at stopping the launch of SpaceX’s Starlink mobile system.

“AST and its investors continue their scorched-earth campaign to thwart competing direct-to-mobile operations,” the company told the FCC on Wednesday.

In a letter, SpaceX derided AST SpaceMobile as a “meme stunt” pushed by foreign investors and partners to slow progress on SpaceX’s Starlink cellular technology, which is set to launch a beta test with T-Mobile this fall.

“Apparently not content with just harming competition in America, AST is now taking its disinformation campaign overseas by recruiting its European investors and partners to parrot its talking points and harm competition there as well “, claims SpaceX.

The company sent the letter after a group of European telecommunications providers warned the FCC that it would sue for damages if the commission loosens the rule for SpaceX and allows it to operate Starlink cellular technology beyond normal radio emission limits.

European telecoms say they fear the Starlink mobile system will create radio interference with their networks. But at least three of the European companies – Vodafone, Telefonica and Orange – are backers of AST SpaceMobile, which is also developing a mobile satellite service to transmit internet data to phones. A beta test for AST SpaceMobile could start in December.

AT&T and Verizon — two other backers of AST — have also asked the FCC not to loosen its radio emission rules for Starlink cellular technology.

SpaceX is dismissing the opposition as a lobbying campaign orchestrated by AST. “The Commission should not bow to the unfounded legal threats of AST’s investors and partners,” SpaceX said, later adding: “The Commission should look through the anti-competitive defense of AST and its collection of investors and partners.”

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SpaceX is getting closer to the commercial launch of its Starlink mobile system, which currently includes over 200 satellites. But to reach its full potential, the company has asked the FCC for a waiver to operate the technology beyond so-called “out-of-band emission power flux density limits.” Without it, SpaceX has warned that the Starlink cellular system will struggle to power real-time video and voice calls, forcing the technology to settle for text-based messaging.

It has led to an escalating regulatory battle over radio broadcast limits; it is unclear which way the FCC will rule. Meanwhile, SpaceX insists its Starlink cellular technology is designed to prevent tampering, citing its own technical studies. “Indeed, like AST investor AT&T’s outlandish advocacy, these AST supporters provide zero technical support for their opposition to SpaceX’s out-of-band emissions waiver,” the company told the FCC.

AST SpaceMobile—which has seen its share value rise more than 500% over the past 12 months—did not immediately respond to a request for comment. But last month, the company’s partner AT&T criticized SpaceX for trying to operate Starlink cellular technology beyond normal limits. SpaceX “just has to follow the rules like everybody else. That’s what we’re doing and we don’t have any issues with approvals,” said AT&T Network Chief Chris Sambar.

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About Michael Kahn

Senior reporter

Michael Kan

I’ve worked as a journalist for more than 15 years – I started as a schools and cities reporter in Kansas City and joined PCMag in 2017.

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