TLDR
- Verizon has signed a commercial agreement with AST SpaceMobile to provide direct-to-cellular service from space beginning in 2026
- AST SpaceMobile stock jumped over 10% in pre-market trading following the announcement, currently trading around $84
- The service will use Verizon’s 850 MHz spectrum to provide coverage across the continental United States
- AST SpaceMobile previously signed a similar agreement with AT&T in May 2025 and has a multi-launch deal with Blue Origin
- The network connects directly to standard smartphones without requiring specialized equipment
Verizon announced a commercial agreement with AST SpaceMobile to provide cellular service from space starting in 2026. The deal expands on a strategic partnership announced in early 2024.
AST SpaceMobile stock rose more than 10% in pre-market trading on Wednesday following the announcement. The stock traded at approximately $84, continuing a strong year that has seen shares gain over 245% year-to-date.
The partnership will integrate AST SpaceMobile’s space-based cellular network with Verizon’s existing infrastructure. The service will use Verizon’s 850 MHz premium low-band spectrum to extend coverage across the United States.
Abel Avellan, founder and CEO of AST SpaceMobile, said the agreement will extend Verizon’s spectrum into areas that would benefit from space-based broadband technology. Srini Kalapala, Verizon’s senior vice president of technology and product development, said the integration aims to connect everything and everyone regardless of geography.
The network operates across multiple spectrum bands. These include premium low-band spectrum, AST SpaceMobile’s licensed L-band and S-band spectrum, and up to 1,150 MHz of partner operators’ spectrum globally.
Financial terms of the agreement were not disclosed. The deal comes two days after Verizon appointed former PayPal CEO Dan Schulman as its new chief executive.
Strategic Partnerships and Expansion Plans
AST SpaceMobile signed a similar agreement with AT&T in May 2025. That partnership involves launching five satellites into low-Earth orbit to provide commercial service.
The company secured a multi-year, multi-launch agreement with Blue Origin. The launches are scheduled for 2025 and 2026 and will deploy approximately 60 next-generation Block 2 BlueBird satellites using New Glenn rockets.
AST SpaceMobile acquired global S-Band spectrum priority rights in August 2025 for $64.5 million. This acquisition enhances its planned space-based cellular broadband offerings and increases service capabilities.
The network is designed to connect directly to everyday smartphones. Users will not need specialized equipment to access the space-based cellular service.
Funding and Competition
The company announced a proposed private offering of $500 million convertible senior notes due 2032 in July 2025. The notes are intended for general corporate purposes, including funding satellite launches.
The stock declined 9.44% in after-hours trading following that announcement. Investors expressed concerns about potential dilution from the convertible notes.
AST SpaceMobile faces competition in the space-based cellular broadband market. SpaceX’s Starlink service is a major competitor in this sector.
EchoStar sold 5G spectrum licenses to SpaceX in September 2025. AST SpaceMobile’s stock dropped 9% following that news.
The Verizon partnership provides AST SpaceMobile with access to one of the largest wireless carriers in the United States. The company now has agreements with two major U.S. telecommunications providers.
