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Last September, Cape Canaveral, Florida, buzzed with seasoned spectators as SpaceX's Falcon 9 rocket embarked on its 373rd mission. Unlike previous launches, this rocket wasn't loaded with another of Elon Musk's Starlink satellites. Instead, it carried five satellites from AST SpaceMobile, a budding rival in the satellite internet market that SpaceX has labeled a "meme stock" in federal regulatory filings.

Equipped with 700-square-foot antennas, these satellites represent an early effort in AST's ambitious plan to establish a global network that could one day rival SpaceX. These sizeable antennas—and an even larger 2,400-square-foot model to follow—are central to AST CEO and founder Abel Avellan's strategy to deliver internet directly to mobile phones. Unlike SpaceX, which uses thousands of satellites to connect various fixed locations, AST aims to provide global coverage using just 90 satellites. The company plans to have 60 satellites in orbit by the end of 2026.

The goal is to extend mobile connectivity to areas beyond the reach of traditional cell towers, allowing people to make calls in remote locations, be it in a forest or far out at sea. Historically, this kind of connectivity required expensive satellite phones with specialized hardware. "Our vision is to provide connectivity without disadvantage to wherever people are located," says Avellan, 54.

AST's approach contrasts sharply with established giants like SpaceX and Jeff Bezos' Project Kuiper. While SpaceX's main revenue stream comes from providing internet to fixed stations, and Kuiper plans to launch over 3,200 satellites, AST focuses on direct-to-phone broadband. Even though SpaceX is testing text services with T-Mobile, its satellite fleet far outnumbers AST's. Nonetheless, AST sees an opportunity to deliver affordable satellite-based mobile plans, particularly to the 2.6 billion people in the developing world who struggle to access the internet.

AST anticipates its service can be integrated into existing cellphone bills for just a few extra dollars each month. By potentially bypassing the need for new cell towers, AST offers cost-effective solutions for telecom companies. Deutsche Bank estimates that AST's revenues could exceed $370 million by 2026 and hit $5 billion by 2030.

One of the significant challenges facing both AST and SpaceX is the need for a direct line of sight from satellite to phone. While SpaceX plans to tackle this by deploying thousands of small satellites to maintain connections, AST's larger antennas make it easier to deliver broadband to mobile devices. Despite each AST satellite costing about $21 million, compared to $1.2 million for a Starlink satellite, the large antennas enable better connectivity and longer operational lifespans.

Industry experts like John Baras, a University of Maryland aerospace engineering professor, highlight that AST's large antennas are more suited for mobile devices, whereas Starlink was designed primarily for fixed stations. AST has already demonstrated successful video calls with Verizon, Vodafone, Rakuten, and AT&T networks using its satellites.

Backed by major investors like AT&T, Vodafone, and Rakuten, AST's partnerships provide access to a vast customer base and crucial radio spectrum. The company raised $110 million in early funding from these telecom giants and additional capital through a public offering in 2021, driving its market cap up to around $8.7 billion.

CEO Abel Avellan, who started his career at Ericsson and later founded Emerging Markets Communications, envisions AST as a game-changer in the satellite communication industry. Having sold his first company for $550 million, he is now focused on making AST a leading provider of satellite internet.

AST's journey is not without challenges, especially from SpaceX, which views it as a competitor. SpaceX has taken AST to the Federal Communications Commission over various regulatory issues. Despite being labeled a "meme stock," AST's shares have seen significant gains, driven by enthusiastic retail investors.

For Avellan, the excitement and investor interest underline the potential impact of his vision. "People are enthusiastic about the prospect that no matter where you live or work, you can have broadband," he says. "If at the same time they can make money by investing and following what we do? Even better."