AST SpaceMobile Inc (NASDAQ:ASTS) has announced a settlement term sheet agreement with Ligado Networks, Viasat, and Inmarsat that would secure the company long-term access to up to 45 MHz of lower mid-band spectrum in the United States and Canada, sending its shares higher in early trade on Friday.
The agreement includes up to 40 MHz of L-Band Mobile Satellite Service spectrum held by Ligado and an additional 5 MHz in the 1670-1675 MHz band in the US.
The access rights, if approved, are expected to last for more than 80 years.
According to the company, this spectrum access is intended to complement its existing low-band coverage plans across the continental US, supporting peak data transmission speeds of up to 120 Mbps.
AST SpaceMobile is currently deploying its first generation of BlueBird satellites, each equipped with a roughly 700-square-foot communication array, which are designed to provide non-continuous broadband coverage across the US and selected global markets.
The company’s planned second-generation satellites, called Block 2 BlueBirds, will feature larger communication arrays of up to 2,400 square feet and are designed to deliver significantly higher bandwidth, supporting voice, video, and data applications directly to standard mobile devices.
Ahead of the deal’s closing, AST SpaceMobile has agreed to make conditional payments on Ligado’s behalf to Inmarsat, totaling $535 million across several tranches.
The proposed agreement is part of Ligado’s ongoing restructuring process and remains subject to court and regulatory approvals, which are anticipated by the end of June 2025.
Upon closing, Ligado will receive approximately $550 million in consideration, with $535 million of that amount to be paid to Inmarsat.
The funding is backed by a $550 million institutional financing commitment secured by AST SpaceMobile through a non-recourse senior-secured delayed-draw term loan facility.
Shares of AST SpaceMobile added 6% at about $39 in early trade on Friday.