TAMPA, Fla. — AST SpaceMobile’s shares soared more than 16% Dec. 9 after the direct-to-smartphone satellite operator announced a 10-year commercial arrangement with Vodafone, one of Europe’s largest telcos with a major presence across Africa.
The stock ultimately closed at $25.99 on the NASDAQ, up 2.63%, as investors digested news of a framework allowing the British telco to provide space-based cellular broadband across its 15 home markets and partners in 45 more countries.
Vodafone ordered a gateway as part of the deal to route data AST SpaceMobile satellites would get from smartphones outside terrestrial coverage into the telco’s network and back to the user, enabling broadband and other services beyond the reach of cell towers.
Financial details were not disclosed.
Gateway to service
Scott Wisniewsk, president and chief strategy officer for Texas-based AST SpaceMobile, told SpaceNews that the gateway is currently being installed in a country the companies plan to announce next year.
AST SpaceMobile recently filed for initial testing approvals with Vodafone in the United Kingdom and Turkey.
“These initial orders and installations are critical since we have a native cellular platform that is deeply integrated with the wireless operator core network and [radio access network [RAN],” Wisniewsk said via email.
“We are installing five gateways in the United States and have gateways installed or nearing completion in half a dozen other countries.”
He said AST SpaceMobile’s global roll-out would be coordinated closely with terrestrial partners, which would provide the cellular frequencies its satellites need to connect devices already in circulation.
SpaceX deployed AST SpaceMobile’s first five in-house-built Block 1 commercial BlueBird satellites in September, each spanning 64 square meters, matching the size of the venture’s two-year-old BlueWalker-3 prototype.
AST SpaceMobile plans to start deploying Block 2 BlueBirds next year, 3.5 times larger than their predecessors, with peak data rates of 120 megabits per second.
“Given the large size of our satellites — the largest-ever to operate commercially in low Earth orbit — the field of view is also large and most countries can be served with only 1 or 2 gateways,” Wisniewsk added.
Commercial backing
The agreement comes after Vodafone joined Google and AT&T to invest a total $155 million in AST SpaceMobile, including $25 million from the British telco as a prepayment for future services.
AST SpaceMobile has said 45-60 BlueBird satellites could provide continuous space-based cellular broadband in key markets, including the United States, its initial focus, where it has also partnered with AT&T rival Verizon.
The operator seeks debt financing from the Export-Import Bank of the United States to help expand the constellation.
Last month, the company said it had signed launch contracts for up to 45 Block 2 BlueBird satellites between 2025 and 2026, with options for around 15 more.
Meanwhile, AST SpaceMobile is seeking permission from the Federal Communications Commission to begin beta services from its five Block 1 spacecraft.
The operator also needs FCC permission to begin commercial direct-to-smartphone services in the United States, which the regulator recently granted for SpaceX’s Starlink network in a landmark decision for the emerging market.
AST SpaceMobile went public on NASDAQ in 2021 by merging with a special purpose acquisition company (SPAC), a shell entity designed to raise capital for investment opportunities.