AST SpaceMobile has signed a new agreement with Verizon to provide space-based cellular broadband across the United States. This is our most significant partnership to date and marks our latest move to capture a greater share of the emerging space-to-cellular market.
Under the agreement, Verizon will integrate AST’s satellite network with ground infrastructure and use Verizon’s 850MHz spectrum to extend coverage in remote areas that towers cannot reach. Terms of the deal were not disclosed.
The deal builds on the companies’ previous partnership announced last year, in which Verizon committed $100 million to support AST’s service rollout.
Verizon is the second major carrier to sign a contract with AST, following a 10-year agreement with Vodafone. For AST, the deal with Verizon comes at a critical time as the company accelerates the deployment of its BlueBird satellite constellation, which is designed to link directly to unmodified cell phones.
The company has now successfully placed the first five BlueBird satellites into low Earth orbit, with the first, Block 1, intended to provide “intermittent” coverage across the United States. Meanwhile, AST is proceeding with the assembly of its next-generation satellite, Block 2, and plans to deploy 45 to 60 satellites by 2026.
The partnership also highlights how rapidly the satellite-to-cell market is evolving. SpaceX has already begun rolling out direct cell-to-cell service with T-Mobile through its Starlink network, and recently doubled down on that ambition by agreeing to acquire $17 billion worth of wireless spectrum from EchoStar.
AST has already demonstrated 4G and 5G connectivity between satellites and smartphones, including voice and video calls, a testing milestone the company says has “proven the capabilities” of its network. But it still faces the challenge of scaling its technology to serve millions of users.
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AST stock rose more than 15% on Wednesday following the announcement of the deal.
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