AST SpaceMobile Stock Jumps on Verizon Satellite Deal
The $100 million strategic partnership aims to deliver cellular broadband from space directly to standard smartphones, targeting 2026 service launch.
AST SpaceMobile (ASTS) shares surged more than 7% after the company announced a definitive commercial agreement with Verizon to provide a space-based cellular network across the United States. The deal, which aims to eliminate cellular dead zones, represents a major validation of AST SpaceMobile's technology and its strategy to connect standard smartphones directly through its satellite constellation.
The partnership is , which includes $65 million in commercial prepayments. The service will leverage AST SpaceMobile's low-Earth orbit satellites and Verizon's licensed 850 MHz spectrum to deliver broadband connectivity to areas where traditional cell coverage is unreliable or non-existent. This collaboration follows a similar agreement with AT&T, positioning AST SpaceMobile to provide near-complete coverage of the continental U.S.
In a statement, AST SpaceMobile CEO Abel Avellan described the partnership as a "transformational commercial milestone," emphasizing the goal to . The technology has already been proven in trials that successfully demonstrated direct voice and video calls between unmodified smartphones and a satellite in space. For Verizon, the deal represents a new frontier in achieving a "seamlessly connected world," according to its SVP of Technology, Srini Kalapala.
The market has reacted positively to the string of commercial agreements, with the stock seeing significant upward momentum and elevated trading volume. However, while the partnerships with two of the largest U.S. carriers are a significant vote of confidence, about the company's high cash burn rate relative to its pre-revenue status. The capital commitments from partners are substantial, but building and launching the full satellite constellation required for commercial scale is a capital-intensive endeavor. Investors will be closely watching for execution as the company moves toward its planned 2026 service launch.