AST SpaceMobile (NASDAQ: ASTS), the Midland, TX-based satellite company that is developing space-based direct-to-device broadband connectivity, has received a strategic investment of $155 million from AT&T, Google, and existing backer Vodafone. The company will also draw down another $51.5 million from its existing senior-secured credit facility, to facilitate its commercial rollout.
AST SpaceMobile claims to operate the “largest-ever commercial communications array in low Earth orbit.” It is one of several satellite companies seeking to become a provider of connectivity directly to standard mobile devices, Inside Towers reported. The company says this substantial investment underscores confidence in its technology and its position in the emerging space-based cellular direct-to-device market.
In 2023, the company conducted tests with AT&T, Vodafone, Rakuten and Nokia that demonstrated it could achieve 14 Mbps download speeds in 5 MHz channels directly from space to commercially available smartphones. For the company’s planned operational satellites, beams are designed to support up to 40 MHz channels that could enable download speeds of up to 120 Mbps.
Along with the strategic investment, Vodafone and AT&T placed orders with AST SpaceMobile for network equipment to support planned commercial services. In addition, the company is working with Google on product development, including testing its network connectivity system with Android and related devices.
The company says it has “over 40 agreements and understandings” with mobile network operators globally, including, Bell Canada, Telefonica, Orange, and MTN Group, who collectively service over 2 billion subscribers,
The company has prior investments from Rakuten, American Tower, and Bell Canada, which are part owners of AST SpaceMobile and serve both as technology partners and customers.
“Each new partnership signifies that market leaders worldwide have tremendous confidence in our vision and ability to ensure that the future of cellular broadband is borderless,” says Abel Avellan, AST SpaceMobile Chairman and CEO.
Chris Sambar, AT&T EVP, Head of Network, comments, “Through our work with AST SpaceMobile, we’ve already proven the possibilities that satellite has to offer in helping connect more people via text, voice and video.”
By John Celentano, Inside Towers Business Editor
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