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Key Takeaways
- AST SpaceMobile and Verizon Communications will partner to provide space-based cellphone service in the continental U.S.
- The service will be available to Verizon customers in 2026.
Shares of AST SpaceMobile (ASTS) blasted off, trading at an all-time high after the provider of space-based cellphone service announced it had struck a deal with Verizon Communications (VZ) to offer direct-to-customer broadband service across the continental U.S.
AST said the service will be available to Verizon customers next year and will allow them to have cell reception wherever they are without the need for specialized equipment.
Why This Matters to You
Verizon customers will be able to get cellphone service virtually anywhere in the continental U.S. without specialized equipment. The partnership with AST SpaceMobile promises more reliable coverage in remote areas, opening the door to a new era of space-based connectivity starting in 2026.
AST noted that the agreement came after the company’s AST SpaceMobile network hit certain milestones in tests. Financial terms were not listed.
The deal “will extend the scope of Verizon’s 850 MHz premium low-band spectrum into areas of the U.S. that would benefit from the ubiquitous reach of space-based broadband technology,” said Founder and CEO Abel Avellan.
Srini Kalapala, senior vice president of technology and product development at Verizon, said the partnership is “not just filling in the map; we are creating a new paradigm of connectivity that will unlock the full potential of the digital age.”
AST SpaceMobile shares have soared 250% this year. Shares of Verizon are little changed today.
