Globalstar CEO Paul Jacobs has been spreading his message that there is no demand for the type of direct-to-device satellite broadband $ASTS offers. And he offers his bear case.
In his CNBC interview on Friday, he cited Idirum and Qualcomm failures in the 90s as evidence that consumers won't pay for coverage away from cell towers - as if consumer expectations have not changed in the last 2 decades.
Yesterday he [cites ](https://www.pcmag.com/news/globalstar-ceo-isnt-convinced-people-will-pay-for-cellular-starlink)a study by GSM Association, which suggests only 32% of mobile subscribers would use the service, and they'd only be willing to pay up to 5% more in extra costs.
Quick math using the study he cited and data from Google gives us:
32% of 386M US subscribers currently paying an average $141/Month each = 123M people willing to pay $7.50 per month for satellite D2D. 50/50 revenue share with mobile operators leaves 123M x $3.75 = $461M/Month in revenue up for grabs. That's just the US.
$461M/Month revenue opportunity is his BEAR CASE lol.
Add in Canada, Europe, Africa, Japan, and the path to $1B/Month revenue for ASTS is easy to see.
ASTS current Mktcap: 7B
Prediction: Mktcap 150B by 2027
Positions:
* 2,400 shares @ $25
* Jan 27 leaps at $25 and $45
[Positions](https://preview.redd.it/xo4rcdxc2n7e1.png?width=3024&format=png&auto=webp&s=553be88d815a172a741f89f545036eea08a60dff)