Shares of AST SpaceMobile (NASDAQ:ASTS) jumped 7% on Wednesday after the company announced it had signed a definitive commercial agreement with Verizon (NYSE:VZ) to deliver space-based cellular broadband service across the continental United States.
Under the agreement, AST SpaceMobile will begin providing direct-to-device connectivity for Verizon customers using standard smartphones starting in 2026. The deal builds upon the companies’ strategic partnership first announced in May 2024.
AST SpaceMobile’s technology enables ordinary smartphones to connect directly to satellites without any special hardware. The service will leverage Verizon’s 850 MHz low-band spectrum to bring coverage to rural and remote regions that could benefit from space-based broadband access.
“Through our definitive commercial agreement with Verizon, we are working to deliver space-based cellular broadband coverage from space across the continental United States,” said Abel Avellan, Founder, Chairman, and CEO of AST SpaceMobile.
The companies have already validated the system’s performance through a series of successful trials. During recent tests, AST SpaceMobile completed voice and video calls as well as two-way RCS messaging directly between standard smartphones and a BlueBird satellite, including a Voice over LTE call made between Texas and New Jersey.
Srini Kalapala, Senior Vice President of Technology and Product Development at Verizon, said, “This partnership with AST SpaceMobile is a good step forward in our mission to build a seamlessly connected world. We are not just filling in the map; we are creating a new paradigm of connectivity that will unlock the full potential of the digital age.”
Verizon Communications stock price
This content is for informational purposes only and does not constitute financial, investment, or other professional advice. It should not be considered a recommendation to buy or sell any securities or financial instruments. All investments involve risk, including the potential loss of principal. Past performance is not indicative of future results. You should conduct your own research and consult with a qualified financial advisor before making any investment decisions.