AST SpaceMobile has entered into a fresh partnership with Verizon to deliver satellite-powered cellular broadband throughout the United States, representing its most prominent collaboration so far and the latest step in its efforts to expand within the growing space-to-cellular sector.
According to the arrangement, Verizon will merge AST’s satellite system with its existing ground-based network, utilizing Verizon’s 850 MHz spectrum to reach remote locations that are inaccessible to traditional cell towers. The financial specifics of the agreement remain confidential.
This collaboration builds upon a previous alliance announced last year, when Verizon pledged $100 million to aid in the deployment of AST’s services.
Verizon is now the second major telecom provider to partner with AST, following a decade-long contract with Vodafone. For AST, this new agreement with Verizon arrives at a pivotal moment as the company works to launch its BlueBird satellite network, which aims to connect directly to standard mobile phones.
Currently, AST has successfully launched its initial five BlueBird satellites into low Earth orbit, forming the first “Block 1” group intended to provide “intermittent” coverage across the country. At the same time, the company is preparing its next series of satellites — “Block 2” — with a goal of deploying between 45 and 60 satellites by 2026.
This agreement also highlights the rapid pace of change in the satellite-to-cellular industry. SpaceX, through its Starlink system, has already begun offering direct-to-cell services in partnership with T-Mobile, and recently expanded its ambitions by agreeing to purchase $17 billion in wireless spectrum from EchoStar.
AST has already shown that its satellites can establish 4G and 5G connections with smartphones, enabling both voice and video calls—milestones the company claims have “demonstrated the potential” of its network. However, scaling up this technology to accommodate millions of users remains a significant hurdle.
Following the announcement, AST’s stock price surged over 15% on Wednesday.
