UPDATE AST SpaceMobile (NASDAQ: ASTS), headquartered in Midland, TX, and Verizon (NYSE: VZ) announced a strategic partnership with a commitment of $100 million from Verizon, to provide direct-to-cellular AST SpaceMobile service when needed for Verizon customers. The $100 million commitment includes $65 million of commercial prepayments, $45 million of which is subject to certain conditions, and $35 million of convertible notes. That commitment follows a strategic investment of $155 million from AT&T, Google, and existing backer Vodafone that the company received earlier in the year, Inside Towers reported.
The combination of Verizon’s terrestrial mobile network and AST SpaceMobile’s low Earth orbit satellite array using multi-operator low-band 850 MHz spectrum will provide connectivity to Verizon’s cellular consumers anywhere in the continental United States. The 850 MHz band, with up to 10 MHz channels, is designated as the B5 band for 4G LTE and the n5 band for 5G, and is used by both Verizon and AT&T (NYSE: T).
“This new partnership with Verizon will enable AST SpaceMobile to target 100 percent 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 enhance cellular connectivity in the United States, essentially eliminating dead zones and empowering remote areas of the country with space-based connectivity.”
“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,” said Srini Kalapala, Verizon SVP of Technology and Product Development.
AST SpaceMobile says it now has agreements with more than 45 mobile network operators globally who collectively serve over 2.8 billion existing subscribers.
By John Celentano, Inside Towers Business Editor
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