Verizon and AST SpaceMobile Partner for Space-Based Cellular Service; AST Shares Rise
AST SpaceMobile has partnered with Verizon to deliver space-based cellular service starting next year. This initiative aims to support direct connection for Verizon users when needed. The collaboration builds on a previous agreement forged last year between the two companies.
Impact on Stock Market
Following the announcement, AST SpaceMobile shares rose by more than 8% before the market opened. This increase comes on the heels of a remarkable 250% rise in the company’s stock for the year prior to this agreement. In contrast, Verizon’s stock saw a modest increase of 0.8%.
Details of the Agreement
Abel Avellan, CEO of AST SpaceMobile, expressed enthusiasm about the definitive commercial agreement. He stated that the partnership aims to extend Verizon’s 850 MHz premium low-band spectrum. This extension is targeted at enhancing coverage in areas of the continental United States.
AST’s Unique Offering
AST SpaceMobile claims to be the first and only global cellular network operating directly in space. The company facilitates connectivity through standard devices, catering to both commercial and government needs. This latest agreement showcases AST’s proven capabilities following recent successful tests of its space network.
Conclusion
The partnership between Verizon and AST SpaceMobile represents a significant step in advancing cellular connectivity. The collaboration promises enhanced coverage and opens new avenues for mobile users across the United States.
