AST SpaceMobile Secures Verizon Deal, Challenging SpaceX & T-Mobile

AST SpaceMobile and Verizon Expand Space-Based Cellular Broadband Partnership

AST SpaceMobile has formalized a new agreement with Verizon to provide space-based cellular broadband service throughout the United States. This represents the company’s most substantial partnership yet and signifies a key advancement in its efforts to gain a greater foothold in the developing space-to-cellular communication sector.

Integrating Satellite and Terrestrial Networks

The newly established agreement will see Verizon integrate AST’s satellite network with its existing ground-based infrastructure. Utilizing Verizon’s 850 MHz spectrum, the collaboration aims to broaden coverage to areas lacking traditional cell tower access. Specific financial details of the agreement have not been publicly released.

Building on Previous Collaboration

This current deal expands upon a prior partnership announced between the two companies last year. Verizon initially committed $100 million to facilitate the deployment of AST’s services.

Strategic Importance for AST

Verizon is now the second major mobile carrier to collaborate with AST, joining Vodafone under a ten-year agreement. This partnership with Verizon arrives at a crucial juncture for AST as the company accelerates the deployment of its BlueBird satellite constellation. The constellation is designed for direct connectivity with standard, unmodified mobile phones.

BlueBird Satellite Deployment Progress

Currently, AST has successfully launched its first five BlueBird satellites into low Earth orbit. This initial “Block 1” deployment is intended to provide “intermittent” coverage across the U.S. Simultaneously, AST is in the process of assembling the next generation of satellites – “Block 2” – with a planned deployment of 45 to 60 satellites by the year 2026.

A Rapidly Evolving Market

This partnership highlights the accelerating pace of development within the satellite-to-cell market. SpaceX, through its Starlink network, has already initiated its direct-to-cell service in conjunction with T-Mobile. Furthermore, SpaceX recently increased its market ambitions by agreeing to acquire $17 billion in wireless spectrum from EchoStar.

Demonstrated Capabilities and Future Challenges

AST has successfully demonstrated 4G and 5G connections between its satellites and smartphones, including successful voice and video calls. These tests, according to the company, have “proven the capabilities” of its network. However, the challenge of scaling this technology to accommodate millions of users remains.

Market Reaction

Following the announcement of the deal, AST shares experienced a significant increase, rising by over 15% on Wednesday.

• Key Partnership: AST SpaceMobile secures a major deal with Verizon.
• Expanded Coverage: The collaboration aims to extend cellular service to remote areas.
• Satellite Deployment: AST is actively deploying its BlueBird satellite constellation.
• Competitive Landscape: The satellite-to-cell market is rapidly gaining momentum.