AST SpaceMobile, a satellite-to-phones service provider, announced a partnership with Verizon on Wednesday, driving its stock prices up more than 57% from its previous close. The company had previously announced a deal with AT&T that will offer remote coverage across the U.S.
As a result of the deal with Verizon, AST SpaceMobile—which is building satellites that will provide broadband services to unmodified smartphones—will receive $65 million in commercial service prepayments, $45 million of which is subject to conditions such as procuring regulatory approvals and signing of a definitive commercial agreement. The company will also get $35 million in debt via convertible notes.
The deals with Verizon and AT&T will essentially eliminate deadzones and empower remote areas of American with space-based connectivity, said AST SpaceMobile’s Chairman and CEO Abel Avellan. AT&T commented on Wednesday that it welcomes AST’s partnership with Verizon, with its Head of Network Chris Sambar saying in a statement that it “reinforces the shared commitment to providing nationwide space-based broadband director to everyday cell phones.”
