A Billionaire Immigrant Once Mocked by Elon Musk Now Challenges His Sky Empire

In the fiercely competitive race to connect the world with satellite internet, a surprising challenger has emerged on the horizon—Abel Avellan, a Venezuelan-born entrepreneur who has quietly built AST SpaceMobile into a direct threat to Elon Musk’s SpaceX Starlink and Jeff Bezos’ Project Kuiper. Once dismissed by Musk as a "meme stock," Avellan’s venture now stakes a bold claim on the lucrative and untapped market of satellite broadband directly to smartphones, positioning itself as a disruptive force in an industry long dominated by American tech titans.

Last September, as crowds gathered at Cape Canaveral to witness SpaceX’s Falcon 9 rocket soar for its record-breaking 373rd mission, the payload was not Musk’s ubiquitous Starlink satellites. Instead, onboard were five massive new satellites from AST SpaceMobile, each carrying an antenna the size of a tennis court, designed to unfold in orbit and beam broadband internet straight to mobile phones anywhere on the planet.

This marked a crucial milestone for Avellan’s company and its vision to deliver cellular connectivity without the need for traditional cell towers or bulky satellite phones.

Unlike Starlink, which primarily serves fixed locations such as homes, businesses, vehicles, and government facilities, AST SpaceMobile’s strategy hinges on providing direct-to-phone connectivity. This market remains largely underserved, especially in regions where cellular towers are sparse or non-existent.

Avellan’s ambitious plan is to blanket the globe with just 90 satellites—far fewer than the thousands deployed by Starlink—leveraging their super-sized antennas to deliver broadband signals directly to standard mobile phones.

This difference is fundamental. While SpaceX and Bezos’ Project Kuiper flood low Earth orbit with small, relatively cheap satellites to create a network primarily for fixed internet access, AST aims to replace cell towers entirely for mobile users, providing seamless connectivity when users are hiking in remote locations, sailing offshore, or living in developing countries with limited infrastructure.

“The cheapest and most efficient way to provide broadband is through your phone,” Avellan said in a recent interview. His company hopes to launch 60 satellites by the end of 2026, making global coverage a real possibility in the near future.

By bypassing the need for expensive terrestrial infrastructure, AST’s technology could revolutionize how the more than 2.6 billion people without reliable internet access get online.

Despite AST’s promise, the disparity in scale between the two rivals is stark. Starlink boasts over 7,100 satellites in orbit, a $12.3 billion revenue stream largely generated from fixed internet services, and a staggering valuation exceeding $350 billion. AST, by comparison, went public via a SPAC in 2021 and currently holds a market capitalization near $8.7 billion.

The company’s satellite construction costs—approximately $21 million per unit—are nearly 20 times that of a Starlink satellite, reflecting the complexity of their giant antennas.

Yet, AST’s smaller constellation with fewer, more capable satellites could be a strategic advantage in cost-efficiency and longevity. Each AST satellite has an expected lifespan of around 10 years—significantly longer than the 5 to 7 years for Starlink’s—reducing replacement frequency and related expenses.

The key engineering challenge for satellite-to-phone communication lies in overcoming the physics of signal transmission. Mobile phones have tiny antennas that struggle to pick up broadband signals from satellites millions of miles overhead.

AST’s solution is its enormous 700 to 2,400 square-foot antennas deployed on each satellite, allowing a stronger, more focused beam capable of maintaining broadband connections even to small devices on the move.

AST’s strategy extends beyond hardware innovation. The company has secured partnerships and investments from global telecom giants including Vodafone, Rakuten, Verizon, and AT&T, offering access to nearly 3 billion subscribers worldwide.

These alliances not only provide capital—AST raised $110 million from such partners before its SPAC launch and an additional $462 million post-IPO—but also critical market reach and distribution channels.

AT&T, a major AST investor, plans to offer satellite connectivity to its customers using AST’s technology as soon as the satellite network expands sufficiently. JR Wilson, AT&T’s Vice President of towers and roaming, likened the Starlink vs. AST competition to the 1980s home video format war, noting how Beta, despite its early arrival and superior technology, ultimately lost to VHS due to pricing and practicality.

AST hopes to avoid similar pitfalls by targeting mobile users and emerging markets rather than fixed home internet.

AST’s collaboration with Vodafone to form a joint venture for satellite connectivity in Europe and Africa exemplifies the company’s focus on markets where traditional infrastructure is insufficient. Providing affordable satellite internet as an add-on to mobile plans could be a game changer for billions in developing regions.

Avellan’s journey from a Venezuelan immigrant to a billionaire tech CEO embodies the American dream’s spirit. With a background in engineering and early career experience at Ericsson, he founded Emerging Markets Communications in 2000 with a modest $50,000 investment and a pregnant wife.

The company served niche markets like Africa, the Middle East, and maritime industries. Selling it in 2016 for $550 million, he reinvested proceeds into founding AST in 2017.

His deep industry knowledge and boots-on-the-ground experience in satellite communications uniquely position him to challenge entrenched players. Avellan’s hands-on approach has turned AST into a nimble competitor capable of pivoting to underserved markets and pushing the boundaries of satellite technology.

While AST’s technology is promising, the telecom industry’s heavily regulated nature means that market success will depend on navigating complex governmental approvals and spectrum rights worldwide. Elon Musk’s SpaceX benefits from insider connections and regulatory momentum, which may pose a hurdle for AST.

Moreover, Starlink’s beta testing with T-Mobile to enable texting on mobile devices without cellular coverage illustrates that Musk’s empire is aware of the threat and actively developing countermeasures.

Still, AST’s novel approach of direct-to-phone satellite broadband, combined with its major telecom partners and focus on emerging markets, makes it a credible contender to Musk’s dominance in the satellite internet space.

By 2026, when AST aims to have 60 satellites operational, the company could start carving a significant slice of the satellite-to-phone market. Deutsche Bank forecasts AST’s revenue could exceed $370 million that year, scaling to over $5 billion by 2030—impressive figures for a company still in its infancy.

The satellite internet landscape is evolving rapidly. The arrival of a billionaire immigrant’s startup, once mocked by Musk, challenging the industry giants heralds a new era of competition and innovation.

If AST’s ambitious vision pans out, millions of people in remote and developing regions could experience connectivity like never before, rewriting the rules of global communications and shifting the balance of power in the sky.

Abel Avellan’s AST SpaceMobile presents a fascinating counterpoint to the well-funded, highly publicized efforts of Elon Musk and Jeff Bezos. Through innovative technology, strategic partnerships, and a focus on affordable mobile broadband in underserved markets, AST is not just a satellite startup—it’s a challenger reshaping the future of how billions connect.

The battle for dominance over the final frontier of internet access is heating up, and in this high-stakes contest, the underdog might just have the winning play.