AST SpaceMobile shares rise following Vodafone deal

Published 03/03/2025, 13:26
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Investing.com -- AST SpaceMobile Inc. (NASDAQ: ASTS) stock climbed 7% after the company announced a key partnership with Vodafone Group Plc (LSE: LON:VOD) to establish a European satellite service provider, aiming to deliver direct-to-device satellite service across Europe.

The collaboration between the two companies will result in the creation of a jointly-owned business, referred to as SatCo, which will distribute AST SpaceMobile’s satellite services to mobile network operators (MNOs) throughout Europe. This venture will enable 100% geographic coverage, offering consumers and businesses secure space-based cellular broadband connectivity directly via their mobile network operator.

This service will be unique in that it will allow everyday smartphones to connect to broadband directly from satellites without the need for any specialized equipment or software updates. The agreement also includes the establishment of a network management and operations center in Europe, leveraging Vodafone (NASDAQ:VOD)’s advanced engineering expertise to build and run a network of ground stations.

Vodafone’s CEO, Margherita Della Valle, emphasized the venture’s potential to keep customers connected regardless of their location, harnessing AST SpaceMobile’s satellite technology to extend Vodafone’s terrestrial network coverage. This initiative is expected to introduce commercial space-based mobile broadband connectivity across Europe during 2025 and 2026.

The partnership also involves the creation of a new research and validation hub in collaboration with the University of Málaga and supported by the Spanish Space Agency, set to open by Summer 2025. Additionally, AST SpaceMobile is expanding its presence in Spain, having recently opened a significant manufacturing and office space in Barcelona, which will play a crucial role in increasing production capacity and expediting the testing of satellite and telecommunications systems.

These strategic moves are designed to strengthen AST SpaceMobile’s ability to serve the European market and are indicative of the company’s commitment to enhancing its capabilities and market reach. The positive market response to this announcement reflects investor confidence in the potential of AST SpaceMobile’s growth and the innovative nature of its partnership with Vodafone.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

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