AST SpaceMobile, Inc. (ASTS) stock surged 10.05% on Friday, driven by a pivotal regulatory approval that paves the way for the company to advance its ambitious space-based cellular broadband network.

The Federal Communications Commission (FCC) granted AST SpaceMobile Special Temporary Authority (STA) to test its first five commercial BlueBird satellites with unmodified smartphones on the networks of major U.S. carriers AT&T and Verizon. This approval enables AST SpaceMobile to conduct trials of its innovative solution, which aims to provide seamless cellular broadband connectivity directly to mobile devices without the need for specialized software or hardware.

The FCC's decision represents a significant milestone for AST SpaceMobile as it accelerates its path to commercial activity. The company plans to install five gateways in the United States and begin testing services on AT&T and Verizon's networks, leveraging their premium low-band wireless spectrum. The orbiting Block 1 BlueBird satellites are designed to support non-continuous cellular broadband service across the United States and in select global markets, targeting approximately 100% nationwide coverage with over 5,600 coverage cells.