AST SpaceMobile and Vodafone Sign Long-Term Connectivity Agreement

AST SpaceMobile, Inc. (NASDAQ: ASTS) shares rose by 8% following the announcement of a definitive long-term commercial agreement with Vodafone Group Plc (LSE: LON:VOD). The partnership, which will last until 2034, aims to provide direct space-based cellular broadband connectivity for commercial and government use on smartphones.

The collaboration between the two companies is not new; Vodafone has been a significant investor in AST SpaceMobile since 2018 and has contributed to several technological milestones. These include the first space-based voice call made on an unmodified smartphone in April 2023, achieving 4G download speeds of over 10 Mbps in June 2023, and the first 5G voice call in September 2023.

Under the agreement, Vodafone will integrate AST SpaceMobile's services into its domestic markets and provide connectivity solutions to other operators through its Partner Markets program. Vodafone has also placed an order for the first Block 1 BlueBird gateway, a key component in building AST SpaceMobile's global network infrastructure. This gateway will allow smartphones to connect directly to satellites in low Earth orbit, subsequently transmitting data to Vodafone's terrestrial network infrastructure.

AST SpaceMobile's next-generation Block 2 BlueBird satellites are expected to significantly enhance network capabilities, increase bandwidth capacity by up to ten times, and support data transmission speeds of up to 120 Mbps.

The strategic partnership is strengthened by additional investments from major industry players such as AT&T, Verizon, Google, and Vodafone itself, along with new contracts with the U.S. Government. AST SpaceMobile has existing agreements with over 45 mobile network operators worldwide, reaching approximately 2.8 billion subscribers.