AT&T Plans 2026 Satellite Beta Launch with AST Spacemobile
AT&T is collaborating with AST Spacemobile to extend its network into the direct-to-cell market, aiming to cover remote and rural U.S. locations where terrestrial networks are unviable. The partnership will utilize AST Spacemobile's capabilities, including its recently launched Bluebird 6 satellite, the largest commercial communications array in low Earth orbit. To support the initiative, AT&T has activated its fourth satellite ground gateway, which connects the satellites to its core network. The company plans to begin a beta satellite service for select customers and FirstNet public safety users in the first half of 2026, targeting a critical gap in nationwide connectivity.
T-Mobile Holds Early Lead with 2024 Beta Test
The push into satellite communications places AT&T in a competitive race with its main rivals. T-Mobile holds a potential lead, having started beta testing its own direct-to-cell service with Starlink in 2024. This earlier start could provide T-Mobile a significant competitive advantage. Meanwhile, Verizon has also partnered with AST Spacemobile, the same partner as AT&T, to use its 850 MHz low-band spectrum for satellite services. This creates a direct challenge to AT&T's expansion efforts and sets the stage for competition for satellite network resources.
AT&T Stock Outperforms Industry with 9.8% Annual Gain
Investor confidence in AT&T's strategy appears solid, as the company's stock has gained 9.8% over the past year, contrasting sharply with the broader telecom industry's 1.7% decline. From a valuation standpoint, AT&T trades at a forward price-to-sales ratio of 11, which is below the industry average of 11.86, suggesting a potentially more attractive entry point for investors. Supporting this outlook, earnings estimates for 2025 have edged up by 0.5% to $2.06 per share over the last 60 days.
