Shares of AST SpaceMobile, Inc. (NASDAQ: ASTS) are demonstrating a bullish trend on the US stock charts this morning. During the pre-market session, ASTS stock experienced a significant increase of 17.82%, reaching a trading price of $6.28. This upward movement is primarily attributed to a major collaboration revealed today.
Strategic Partnership With Verizon
AST SpaceMobile (ASTS) has entered into a strategic partnership with Verizon, featuring a substantial $100 million commitment from Verizon. This partnership aims to deliver direct-to-cellular AST SpaceMobile services to Verizon customers as needed. This alliance is a significant commercial milestone, targeting complete coverage of the continental United States on the premium 850 MHz spectrum with two leading U.S. mobile operators in the highly lucrative wireless market.
This collaboration is set to revolutionize cellular connectivity across the United States, effectively eliminating dead zones and enabling space-based connectivity in remote areas. Verizon’s strategic spectrum management has consistently provided outstanding cellular service. By integrating AST SpaceMobile’s satellite network with its terrestrial infrastructure, Verizon will extend essential connectivity to remote U.S. regions where traditional land-based signals are ineffective.
Enhancing Nationwide Connectivity
The partnership plans to combine Verizon’s dependable terrestrial mobile network with the multi-operator 850 MHz band and AST SpaceMobile’s advanced commercial communications arrays in low Earth orbit. This synergy is expected to ensure continuous connectivity for cellular consumers throughout the continental United States. Verizon’s $100 million commitment includes $65 million in commercial prepayments, with $45 million contingent upon specific conditions, and $35 million in convertible notes.
Presently, AST SpaceMobile maintains agreements with over 45 mobile network operators worldwide, collectively serving more than 2.8 billion subscribers. The company’s cutting-edge satellite technology is produced in Midland, Texas, where its manufacturing and testing facilities cover a combined area of 185,000 square feet.
A Similar Move
Recently, AST SpaceMobile and AT&T signed a final commercial deal to deliver a broadband network based in space straight to regular cell phones. The duration of this agreement is 2030. Prior to this, the businesses collaborated under a Memorandum of Understanding. This is a significant advancement in improved connection for businesses and consumers nationwide, not only a minor step.