AST SpaceMobile has signed a new agreement with Verizon to provide space-based cellular broadband service across the United States. This partnership is the most significant for AST to date and represents a major step in capturing a larger share of the emerging space-to-cellular market.
Under the new agreement, Verizon will integrate AST’s satellite network with its own terrestrial infrastructure. The partnership will use Verizon’s 850 MHz spectrum to extend coverage to remote areas where traditional cell towers cannot reach. The specific financial terms of the deal were not publicly disclosed.
This new arrangement builds on an earlier partnership announced last year, which included a one hundred million dollar commitment from Verizon to support the rollout of AST’s service. Verizon is the second major carrier to partner with AST, following a separate ten-year agreement with Vodafone.
The Verizon deal arrives at a critical time for AST as the company works to deploy its BlueBird satellite constellation. This network is designed to connect directly with standard, unmodified cell phones. The company has already successfully launched its first five BlueBird satellites into low Earth orbit. This initial group, known as Block 1, is intended to provide intermittent coverage across the United States. AST is now assembling its next generation of satellites, called Block 2, with plans to deploy between forty-five and sixty satellites by the year 2026.
The partnership highlights how quickly the satellite-to-cell market is developing. SpaceX, through its Starlink network, has already begun rolling out its own direct-to-cell service in collaboration with T-Mobile. SpaceX recently strengthened its position by agreeing to acquire wireless spectrum from EchoStar in a deal valued at seventeen billion dollars.
AST has already successfully demonstrated 4G and 5G connections between its satellites and standard smartphones, completing tests that included voice and video calls. The company states these testing milestones have proven the capabilities of its network. A key challenge that remains is scaling the technology to reliably serve millions of users simultaneously.
Following the announcement of the deal, AST shares increased by more than fifteen percent on Wednesday.