Satellites bypassing towers in Mexico, going direct to users, says Scotiabank

Scotiabank believes a the “dawn of a new era” is here whereby satellites will bypass terrestrial towers and provide services directly to mobile users. Mexico’s Federal Telecommunications Institute announced the conclusion of a spectrum auction in Band 53, comprising 10 MHz in the 2483.5 – 2495 MHz frequency for $4.2M, the analyst tells investors in a research note. The firm this is exactly the same band that Globalstar (GSAT) uses in the U.S. and Canada to provide basic SOS and text services to Apple (AAPL) iPhone users. Through an agreement with Globalstar, Apple provides 24 months of service to customers owning an iPhone 14 or newer models, Scotiabank points out. It says the auction’s winner will be announced next month, but there was a sole participant, and Globalstar has a gateway in Mexico with the spectrum specifically tagged for satellite-to-cell use. Equity investors in Mexico can now gain direct exposure to this nascent industry after AST SpaceMobile (ASTS) listed in the SIC market. Scotiabank views Apple providing telecom services through a satellite company as positive for users and negative for the towers.