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Investing.com -- AST SpaceMobile (NASDAQ:ASTS) stock rose 7% after announcing a 10-year commercial agreement with stc group that includes a $175 million prepayment and significant long-term revenue commitment.
The deal will enable direct-to-device satellite mobile connectivity across Saudi Arabia and key markets in the Middle East and Africa. Under the agreement, AST SpaceMobile will integrate its space-based cellular broadband network with stc’s terrestrial infrastructure to expand mobile coverage, delivering 5G and 4G LTE services directly to standard smartphones without requiring specialized software or device modifications.
This marks AST SpaceMobile’s first partnership in the region. The company will build three ground gateways in Saudi Arabia and establish a Network Operations Center in Riyadh to support network operations.
"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 partnership aims to eliminate connectivity gaps in remote and underserved areas, potentially empowering millions with reliable high-speed connectivity. Commercial services are expected to launch during the fourth quarter of 2026, subject to regulatory approvals across the 15-country operating footprint.
With this agreement, stc group becomes the first operator in the region to adopt direct-to-device satellite broadband connectivity, advancing its strategy to expand digital access and invest in next-generation infrastructure.
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