AST SpaceMobile strikes key deal with Verizon amid growing competition with SpaceX and T-Mobile

AST SpaceMobile has signed a new agreement with Verizon to introduce space cellular broadband across the United States, marking its largest partnership to date and its latest move to capture a greater share of the emerging space-to-cellular market.

Under the terms of the deal, Verizon will integrate AST’s satellite network with its terrestrial infrastructure, using Verizon’s 850 MHz spectrum to extend coverage into remote areas that towers cannot 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 committed $100 million to support the rollout of AST’s service.

Verizon is the second major carrier to sign with AST, following a 10-year deal with Vodafone. For AST, the deal with Verizon comes at a critical time as the company races to deploy its BlueBird satellite constellation designed to connect directly to unmodified cell phones.

Currently, the company has successfully placed its first five BlueBird satellites into low Earth orbit, an initial “Block 1” intended to provide “intermittent” coverage across the United States. Meanwhile, AST is assembling the next generation of satellites – “Block 2” – with plans to deploy between 45 and 60 satellites by 2026.

The partnership also highlights how quickly the satellite-to-cell market is evolving. SpaceX, through its Starlink network, has already begun rolling out its direct communications service with T-Mobile and recently boosted its ambitions 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 steps that the company said “proved the capabilities” of its network. But the challenge still remains to scale this technology so that it serves millions of users.

AST shares jumped more than 15% on Wednesday after the deal was announced.