AST SpaceMobile (NASDAQ:ASTS) shares rose 7% on Wednesday after the satellite communications company announced a 10-year commercial partnership with stc group, valued at $175 million in prepayments and including a long-term revenue commitment.
The agreement aims to deliver direct-to-device mobile connectivity across Saudi Arabia and several key markets in the Middle East and Africa. As part of the deal, AST SpaceMobile will integrate its space-based cellular broadband network with stc’s terrestrial infrastructure, enabling 5G and 4G LTE services to be transmitted directly to standard smartphones—without the need for special hardware, software, or device modifications.
This partnership represents AST SpaceMobile’s first commercial entry into the Middle East, marking a major milestone in its global expansion strategy. The company plans to build three ground gateways in Saudi Arabia and establish a Network Operations Center in Riyadh to support regional connectivity and network management.
“stc group regional leadership and commitment to innovation, combined with our pioneering space-based network, will create a paradigm shift in how people connect,” said Abel Avellan, Founder, Chairman, and CEO of AST SpaceMobile.
The collaboration is designed to close connectivity gaps in remote and underserved regions, potentially providing millions of people with reliable, high-speed mobile access. Commercial deployment is expected to begin in the fourth quarter of 2026, pending regulatory approvals across the 15-country service footprint.
Through this agreement, stc group becomes the first operator in the region to adopt direct-to-device satellite broadband technology, advancing its goal of expanding digital access and investing in next-generation communication infrastructure.