Vi and AST SpaceMobile partner to expand satellite connectivity in India

MUMBAI/MIDLAND - Vodafone Idea (Vi) and AST SpaceMobile (NASDAQ:ASTS) have formed a strategic partnership to expand mobile connectivity across India’s unconnected regions using satellite technology, according to a press release issued Wednesday. AST SpaceMobile, currently valued at $13.16 billion, has seen its stock surge over 250% in the past year, reflecting strong investor confidence in its satellite communication technology.

The collaboration aims to complement Vi’s terrestrial network with AST SpaceMobile’s space-based cellular technology, which connects directly to standard smartphones without requiring specialized software or device modifications. According to InvestingPro data, AST SpaceMobile maintains a strong financial position with a current ratio of 10.62, indicating robust liquidity to support its expansion plans.

Under the agreement, AST SpaceMobile will develop, manufacture, and manage the satellite constellation, while Vi will oversee terrestrial network integration, operating spectrum, and market access.

"As satellite-based mobile access becomes a reality in India, we are looking forward to ushering in a new era of seamless and resilient connectivity," said Avneesh Khosla, Chief Marketing Officer at Vi.

The partnership aligns with Digital India’s initiatives to expand broadband cellular access, particularly in challenging terrains where deploying terrestrial mobile infrastructure is difficult.

India represents a significant market opportunity with over 1.1 billion mobile subscribers. The companies plan to develop commercial offerings for consumer, enterprise, and IoT sectors. With analysts projecting 12.74% revenue growth for AST SpaceMobile in the current fiscal year, this partnership could significantly impact the company’s financial trajectory. InvestingPro subscribers can access 16 additional exclusive insights about AST SpaceMobile’s growth potential and market position.

AST SpaceMobile recently demonstrated its technology by completing the first voice and video calls from space using a standard mobile phone, validating the viability of its direct-to-device satellite communication system.

The collaboration comes as India continues to expand its 4G coverage while rolling out 5G services. The satellite-based system is designed to provide voice, video, data streaming, and internet access in areas currently underserved by traditional networks. With analyst price targets ranging from $30 to $64 per share, market experts maintain a bullish outlook on AST SpaceMobile’s growth prospects. For comprehensive analysis and detailed financial metrics, investors can access the full Pro Research Report available on InvestingPro.

In other recent news, AST SpaceMobile has reached a settlement agreement with Ligado Networks, Viasat, and Inmarsat to secure long-term access to 45 MHz of mid-band spectrum in the United States and Canada. This agreement, subject to court approval, involves a $550 million financing commitment in the form of a non-recourse senior-secured delayed-draw term loan facility. AST SpaceMobile is set to join the Russell 1000 Index, reflecting its growing market capitalization and increased visibility among investors. The company also announced updates to its corporate governance, including an amendment allowing for the removal of directors by written consent, following its recent Annual Meeting.

Scotiabank analysts have reiterated their Sector Outperform rating for AST SpaceMobile, citing potential collaboration with Blue Origin and Amazon’s Project Kuiper. Meanwhile, Cantor Fitzgerald maintains an Overweight rating with a $30 price target, acknowledging the company’s full-year revenue guidance and satellite deployment progress. Despite these positive developments, Cantor Fitzgerald notes that increased costs for satellite materials may offset optimism. AST SpaceMobile continues to secure new bookings in the Defense sector and aims to expand its footprint in satellite communications.

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