Outstanding valuation framework here. The partnership model angle where ASTS piggybacks on mobile operators instead of burning capital on customer acquistion is probly their biggest edge. I worked ata startup that tried to compete head-on with incumbents and we ran out of cash, so seeing them take the B2B route makes a ton of sense for unit economics.
Glad you enjoyed the report. In addition to the lower cost benefit, there is also a speed advantage going B2B. ASTS can scale much faster than Starlink, and this is why Elon was so pissed off and aggressive. If the India launch succeeds, in 1 year's time ASTS could have millions of users and in 2 years 50-100M. Starlink has only 8M subscribers, ASTS could reach that in a few months in the best-case scenario.
Outstanding valuation framework here. The partnership model angle where ASTS piggybacks on mobile operators instead of burning capital on customer acquistion is probly their biggest edge. I worked ata startup that tried to compete head-on with incumbents and we ran out of cash, so seeing them take the B2B route makes a ton of sense for unit economics.
Glad you enjoyed the report. In addition to the lower cost benefit, there is also a speed advantage going B2B. ASTS can scale much faster than Starlink, and this is why Elon was so pissed off and aggressive. If the India launch succeeds, in 1 year's time ASTS could have millions of users and in 2 years 50-100M. Starlink has only 8M subscribers, ASTS could reach that in a few months in the best-case scenario.
Good article 👍
Thanks, Frank.