AST SpaceMobile has inked a new deal with Verizon to bring space-based cellular broadband across the United States, marking its most significant partnership to date and its latest move to capture a larger share of the emerging space-to-cellular market.
Under the agreement, Verizon will integrate AST’s satellite network with its terrestrial infrastructure, using Verizon’s 850 MHz spectrum to extend coverage in remote areas where towers can’t reach. Terms of the deal were not disclosed.
The deal builds on an earlier partnership between the two entities announced last year, in which Verizon made a $100 million commitment to support AST’s service rollout.
Verizon is the second major carrier to sign with AST, following a 10-year agreement with Vodafone. For AST, the Verizon deal comes at a critical time as the company races to deploy its BlueBird satellite constellation designed to link directly with unmodified cell phones.
As of now, the company has successfully placed its first five BlueBird satellites into low Earth orbit, an initial “Block 1” that are intended to deliver “intermittent” coverage across the U.S. Meanwhile, AST is assembling the next generation of satellites – “Block 2” – with plans to deploy between 45-60 satellites by 2026.
The partnership also underscores how rapidly the satellite-to-cell market is evolving. SpaceX, through its Starlink network, has already started rolling out its direct-to-cell service with T-Mobile, and recently bolstered its ambitions further by agreeing to acquire $17 billion worth of wireless spectrum from EchoStar.
AST has already demonstrated 4G and 5G connections between its satellites and smartphones, including voice and video calls, testing milestones that the company says have “proven the capabilities” of its network. But it still faces the challenge of scaling that technology to serve millions of users.
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AST shares jumped by more than 15% on Wednesday after the deal was announced.
