AST SpaceMobile Secures Major Partnership with Verizon in Face of SpaceX and T-Mobile Competition

Under the terms of the agreement, Verizon will combine AST’s satellite network with its existing terrestrial infrastructure, utilizing Verizon’s 850 MHz spectrum to enhance coverage in remote regions where traditional cell towers are not feasible. The specific details of the deal have not been disclosed.

The recent deal between AST and Verizon follows a previous agreement announced last year, where Verizon pledged $100 million to support AST’s service deployment. Verizon now joins Vodafone as one of AST’s major partners, with a 10-year contract already in place. This collaboration comes at a crucial juncture for AST as the company pushes forward with its BlueBird satellite constellation project, aimed at establishing direct connectivity with standard cell phones.

AST has successfully launched its initial set of five BlueBird satellites into low Earth orbit, known as “Block 1,” to provide intermittent coverage across the U.S. The company is currently in the process of assembling the next generation of satellites, referred to as “Block 2,” with plans to deploy between 45-60 satellites by 2026.

The partnership with Verizon underscores the rapid evolution of the satellite-to-cell market. SpaceX, through its Starlink network, has already initiated direct-to-cell services in collaboration with T-Mobile and recently expanded its scope by acquiring $17 billion worth of wireless spectrum from EchoStar.

AST has achieved significant milestones in testing 4G and 5G connections between its satellites and smartphones, including voice and video calls, demonstrating the capabilities of its network. However, the company still faces the challenge of scaling this technology to accommodate a large user base.

Following the announcement of the partnership, AST’s stock prices surged by more than 15% on Wednesday.