Deal Overview

AST SpaceMobile (NASDAQ: ASTS) announced Wednesday it has signed a definitive commercial agreement with Verizon (NYSE: VZ) to begin offering cellular service from space in 2025.

The service will allow Verizon subscribers to connect directly to AST’s space-based broadband network “when needed”, extending coverage into underserved or remote areas.
This builds on the partnership the two companies announced last year.

Market Reaction

AST SpaceMobile shares jumped 8% premarket Wednesday.
The stock has been highly volatile, up over 250% year-to-date prior to the announcement.
Verizon shares gained 0.8% on the news.

Strategic Impact

AST will leverage Verizon’s 850 MHz low-band spectrum to expand coverage.
CEO Abel Avellan: “Through our commercial agreement with Verizon, we are working to deliver space-based cellular broadband coverage across the continental United States.”
The deal follows AST’s successful space network test runs, proving direct-to-device connectivity with standard cell phones.

Why It Matters

The agreement positions AST as a pioneer in direct-to-device space-based cellular broadband, an emerging field also being pursued by SpaceX’s Starlink and other satellite operators.
If successful, it could dramatically improve connectivity in rural, remote, and disaster-prone areas, supporting both commercial and government use cases.