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Investing.com -- AST SpaceMobile (NASDAQ:ASTS) stock rose 7% after the company announced a definitive commercial agreement with Verizon (NYSE:VZ) to provide space-based cellular broadband service across the continental United States.
The agreement will enable AST SpaceMobile to deliver direct-to-device connectivity to standard smartphones for Verizon customers starting in 2026. This partnership expands on the strategic relationship announced between the two companies in May 2024.
AST SpaceMobile’s technology allows everyday smartphones to connect directly to satellites without requiring specialized equipment. The service will utilize Verizon’s 850 MHz premium low-band spectrum to extend coverage to areas that would benefit from space-based broadband technology.
"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 demonstrated the technology’s capabilities through successful trials. In recent tests, they completed direct voice and video calls, as well as two-way RCS messaging, between standard smartphones and a BlueBird satellite in space. This included a Voice over LTE call between Texas and New Jersey via the satellite.
Srini Kalapala, Senior Vice President of Technology and Product Development at Verizon, stated, "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."
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