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An Interesting Growth Opportunity in the Cellular Connectivity Industry

Austin Lieberman sees a compelling investment case capitalizing on expanded cellular coverage.

January 22, 2021

As access to high-speed internet and cellular connectivity has spread to many parts of the globe, it’s easy to feel like the entire world has access to these services. However, even in the United States, there are many coverage gaps for wireless mobile networks.

In fact, more than 5 billion mobile phones move in and out of coverage and roughly 50% of the global population is without mobile broadband access. Over the next several years, I think we’re going to see investors pay more attention to the growth opportunities in the cellular connectivity market.

One company that I think will benefit from this over the next decade is New Providence Acquisition Corp (NASDAQ: NPA). New Providence Acquisition Corp is a Special Acquisition Company (SPAC) that brought AST Space Mobile to the public market.

AST SpaceMobile owns the first and only space-based cellular broadband network that provides coverage everywhere and is compatible with all 5 billion existing mobile phones. The company partners with leading cellular data providers like Vodafone, Telecom, and AT&T to offer their customers connectivity outside of their cellular coverage areas for a very low cost.

AST SpaceMobile has more than 750 patent claims for its technology and has a network of satellites in low-earth-orbit to power its coverage.

This is a very early-stage and risky company, but management expects to earn $181 million in revenue by 2023 and $9.6 billion in revenue by 2027. If the company is successful and can continue landing big partnerships with carriers, expand their network, and get more customers using their service, this could be a tremendous growth story over the next decade.

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