Rakuten-backed AST gives up on satellite launch failure and cancels No. 7 satellite

AST SpaceMobile said its BlueBird 7 communications satellite entered a lower-than-planned orbit after launching on Blue Origin’s New Glenn, forcing it to abandon operations.

The company plans to dispose of the satellite through atmospheric reentry; while booster recovery succeeded, the satellite mission itself failed.

The financial loss is expected to be covered by insurance.

The setback could affect AST SpaceMobile’s satellite network rollout and the future plans of partner Rakuten Mobile.