AST SpaceMobile and Verizon announced a strategic partnership with a commitment of $100 million dollars from Verizon, to provide direct-to-cellular AST SpaceMobile service when needed for Verizon customers.
The announcement caused AST SpaceMobile’s shares to reach $9.02 during Wednesday’s session, representing a growth of 69.23%.
The combination of Verizon’s highly reliable terrestrial mobile network, the multi-operator 850 Mhz band and the largest and most powerful commercial communications arrays ever deployed in low Earth orbit, is planned to enable cellular consumers to stay connected in the continental United States, explained the companies in a press release.
The $100-million-dollar Verizon commitment includes $65 million dollars of commercial prepayments, $45 million dollars of which are subject to certain conditions, and $35 million dollars of convertible notes.
“This new partnership with Verizon will enable AST SpaceMobile to target 100% coverage of the continental United States on premium 850 MHz spectrum with two major U.S. mobile operators in the most valuable wireless market in the world, a transformational commercial milestone,” said Abel Avellan, Founder, Chairman, and CEO of AST SpaceMobile.
This partnership will eliminate dead zones and empower remote areas of the country with space-based connectivity, added Avellan.
Srini Kalapala, Senior Vice President of Technology and Product Development at Verizon, commented that Verizon use the spectrum to deliver outstanding cellular service for their customers through their terrestrial network.
“By entering into this agreement with AST, we will now be able to use our spectrum in conjunction with AST’s satellite network to provide essential connectivity in remote corners of the U.S. where cellular signals are unreachable through traditional land-based infrastructure,” mentioned Kalapala.
Today, AST SpaceMobile has agreements with more than 45 mobile network operators globally who collectively serve over 2.8 billion existing subscribers. The company produces its state-of-the-art satellite technology in Midland, Texas, with manufacturing and testing facilities that collectively span 185,000 square feet.