AST SpaceMobile Inc (NASDAQ:ASTS) shares surged more than 8% after it announced a definitive commercial agreement with Verizon Communications Inc (NYSE:VZ, ETR:BAC) to provide space-based cellular broadband services across the continental United States, with service expected to begin in 2026.
The partnership will allow Verizon customers to access direct-to-cellular satellite connectivity when needed, extending the reach of Verizon’s terrestrial mobile network into remote and hard-to-reach areas.
AST SpaceMobile’s technology operates in low Earth orbit and is capable of connecting directly to standard, unmodified smartphones.
The service aims to provide ubiquitous cellular coverage in locations where traditional terrestrial infrastructure is limited, such as rural areas and hiking trails.
Testing has demonstrated successful voice and video calls, as well as two-way messaging, between standard smartphones via AST SpaceMobile’s satellites.
“Through our definitive commercial agreement with Verizon, we are working to deliver space-based cellular broadband coverage from space across the continental United States,” AST SpaceMobile CEO Abel Avellan said in a statement.
“The agreement will extend the scope of Verizon’s 850 MHz premium low-band spectrum into areas of the US that would benefit from the ubiquitous reach of space-based broadband technology.”
Shares of Verizon edged 0.5% lower to about $41 on the news.