AST SpaceMobile Announces Agreement for Long-Term Access to up to 45 MHz of Premium Lower Mid-Band Spectrum in the United States for Direct-to-Device Satellite Applications
AST SpaceMobile (NASDAQ: ASTS) has announced an agreement for long-term access to up to 45 MHz of lower mid-band spectrum in the US for direct-to-device satellite applications. This strategic move aims to enhance AST SpaceMobile’s space-based cellular broadband network, enabling peak data speeds up to 120 Mbps. The agreement includes 40 MHz of L-Band MSS spectrum in the US and Canada from Ligado Networks, plus additional 5 MHz in the 1670-1675 MHz Band in the US.
The deal is part of Ligado's restructuring, with AST SpaceMobile set to receive spectrum usage rights for over 80 years. The transaction, expected to finalize in the first half of 2025, will see Ligado receive 4.7 million penny warrants convertible into AST SpaceMobile Class A shares and approximately $550 million upon regulatory approval. AST SpaceMobile has secured $550 million institutional financing to support this transaction.
Further, AST SpaceMobile will pay $80 million annually for spectrum usage and provide Ligado with long-term net revenue sharing rights. In September 2024, AST SpaceMobile launched five BlueBird satellites, offering non-continuous cellular broadband service across the US. The next-gen Block 2 BlueBirds will deliver up to 10 times the bandwidth capacity, supporting peak data speeds of up to 120 Mbps.
AST SpaceMobile (NASDAQ: ASTS) ha annunciato un accordo per l'accesso a lungo termine fino a 45 MHz di spettro a banda media bassa negli Stati Uniti per applicazioni satellitari dirette ai dispositivi. Questa mossa strategica mira a potenziare la rete di banda larga cellulare spaziale di AST SpaceMobile, consentendo velocità di trasmissione dati fino a 120 Mbps. L'accordo include 40 MHz di spettro MSS L-Band negli Stati Uniti e in Canada da Ligado Networks, oltre a 5 MHz aggiuntivi nella banda 1670-1675 MHz negli Stati Uniti.
Il contratto fa parte della ristrutturazione di Ligado, con AST SpaceMobile che riceverà diritti di utilizzo dello spettro per oltre 80 anni. La transazione, prevista per essere finalizzata nella prima metà del 2025, vedrà Ligado ricevere 4,7 milioni di warrant a penny convertibili in azioni di classe A di AST SpaceMobile e circa 550 milioni di dollari all'approvazione da parte delle autorità regolatorie. AST SpaceMobile ha assicurato un finanziamento istituzionale di 550 milioni di dollari per supportare questa transazione.
Inoltre, AST SpaceMobile pagherà 80 milioni di dollari all'anno per l'uso dello spettro e fornirà a Ligado diritti di condivisione dei ricavi netti a lungo termine. A settembre 2024, AST SpaceMobile ha lanciato cinque satelliti BlueBird, offrendo un servizio di broadband cellulare non continuo negli Stati Uniti. I BlueBird di nuova generazione Block 2 offriranno fino a 10 volte la capacità di larghezza di banda, supportando velocità di picco fino a 120 Mbps.
AST SpaceMobile (NASDAQ: ASTS) ha anunciado un acuerdo para el acceso a largo plazo de hasta 45 MHz de espectro de banda media inferior en los EE. UU. para aplicaciones satelitales directas a dispositivos. Este movimiento estratégico tiene como objetivo mejorar la red de banda ancha celular basada en el espacio de AST SpaceMobile, permitiendo velocidades de datos máximas de hasta 120 Mbps. El acuerdo incluye 40 MHz de espectro MSS en L-Band en los EE. UU. y Canadá de Ligado Networks, además de 5 MHz adicionales en la banda de 1670-1675 MHz en los EE. UU.
El acuerdo es parte de la reestructuración de Ligado, con AST SpaceMobile recibiendo derechos de uso del espectro por más de 80 años. Se espera que la transacción, que se finalize en la primera mitad de 2025, permita a Ligado recibir 4,7 millones de warrants de penny convertibles en acciones de Clase A de AST SpaceMobile y aproximadamente 550 millones de dólares una vez aprobado por los organismos reguladores. AST SpaceMobile ha asegurado financiamiento institucional de 550 millones de dólares para apoyar esta transacción.
Además, AST SpaceMobile pagará 80 millones de dólares anuales por el uso del espectro y proporcionará a Ligado derechos de participación en ingresos netos a largo plazo. En septiembre de 2024, AST SpaceMobile lanzó cinco satélites BlueBird, ofreciendo servicio de banda ancha celular no continuo en los EE. UU. Los BlueBird de nueva generación Block 2 ofrecerán hasta 10 veces la capacidad de ancho de banda, soportando velocidades de datos máximas de hasta 120 Mbps.
AST SpaceMobile (NASDAQ: ASTS)는 미국의 직접 장치 위성 애플리케이션을 위해 최대 45 MHz의 중저주파 대역에 대한 장기 접근 권한을 위한 계약을 발표했습니다. 이 전략적 조치는 AST SpaceMobile의 우주 기반 셀룰러 초고속 인터넷 네트워크를 향상시켜 최대 120 Mbps의 데이터 전송 속도를 가능하게 하는 것을 목표로 합니다. 이 계약에는 Ligado Networks로부터 미국과 캐나다에서 40 MHz의 L-Band MSS 스펙트럼이 포함되며, 미국의 1670-1675 MHz 대역에서 추가로 5 MHz가 포함됩니다.
이번 거래는 Ligado의 구조조정의 일환으로, AST SpaceMobile은 80년 이상 스펙트럼 사용 권리를 받게 됩니다. 2025년 상반기에 완료될 것으로 예상되는 이번 거래에서 Ligado는 AST SpaceMobile의 A 클래스 주식으로 전환 가능한 470만 개의 페니 워런트와 약 5억 5천만 달러를 승인받게 됩니다. AST SpaceMobile은 이 거래를 지원하기 위해 5억 5천만 달러의 기관 자금을 확보했습니다.
또한, AST SpaceMobile은 스펙트럼 사용에 대해 매년 8천만 달러를 지불하고 Ligado에 장기적으로 순 수익 공유 권리를 제공합니다. 2024년 9월 AST SpaceMobile은 미국 전역에 비연속 셀룰러 초고속 인터넷 서비스를 제공하는 5개의 BlueBird 위성을 발사했습니다. 차세대 Block 2 BlueBird는 최대 10배의 대역폭 용량을 제공하여 최대 120 Mbps의 데이터 전송 속도를 지원합니다.
AST SpaceMobile (NASDAQ: ASTS) a annoncé un accord pour un accès à long terme à jusqu'à 45 MHz de spectre dans la bande basse moyenne aux États-Unis pour des applications satellites directement vers des appareils. Ce mouvement stratégique vise à améliorer le réseau de large bande cellulaire basé dans l'espace d'AST SpaceMobile, permettant des vitesses de données maximales allant jusqu'à 120 Mbps. L'accord comprend 40 MHz de spectre MSS en bande L aux États-Unis et au Canada de Ligado Networks, ainsi que 5 MHz supplémentaires dans la bande de 1670-1675 MHz aux États-Unis.
L'accord fait partie du réaménagement de Ligado, AST SpaceMobile devant recevoir des droits d'utilisation du spectre pour plus de 80 ans. La transaction, qui devrait se finaliser au premier semestre 2025, verra Ligado recevoir 4,7 millions de bons de souscription à 1 cent, pouvant être convertis en actions de classe A d'AST SpaceMobile, ainsi qu'environ 550 millions de dollars après approbation réglementaire. AST SpaceMobile a obtenu un financement institutionnel de 550 millions de dollars pour soutenir cette transaction.
De plus, AST SpaceMobile paiera 80 millions de dollars par an pour l'utilisation du spectre et fournira à Ligado des droits de partage de revenus nets à long terme. En septembre 2024, AST SpaceMobile a lancé cinq satellites BlueBird, offrant un service de large bande cellulaire non continu à travers les États-Unis. Les BlueBird de nouvelle génération Block 2 offriront jusqu'à 10 fois la capacité de bande passante, supportant des vitesses de données maximales allant jusqu'à 120 Mbps.
AST SpaceMobile (NASDAQ: ASTS) hat eine Vereinbarung über einen langfristigen Zugang zu bis zu 45 MHz an unteren Mittelband-Spektrum in den USA für direkt zu Geräten gerichtete Satellitenanwendungen bekannt gegeben. Dieser strategische Schritt zielt darauf ab, das weltraumgestützte Mobilfunk-Breitbandnetz von AST SpaceMobile zu erweitern und Datenübertragungsgeschwindigkeiten von bis zu 120 Mbps zu ermöglichen. Die Vereinbarung umfasst 40 MHz von L-Band MSS-Spektrum in den USA und Kanada von Ligado Networks sowie zusätzliche 5 MHz im 1670-1675 MHz-Band in den USA.
Der Deal ist Teil der Umstrukturierung von Ligado, wobei AST SpaceMobile Nutzungsrechte für über 80 Jahre erhalten wird. Die Transaktion, die voraussichtlich in der ersten Hälfte von 2025 abgeschlossen wird, sieht vor, dass Ligado 4,7 Millionen Penny-Warrants erhält, die in Stammaktien der Klasse A von AST SpaceMobile umgewandelt werden können, sowie etwa 550 Millionen US-Dollar nach Genehmigung durch die Aufsichtsbehörden. AST SpaceMobile hat eine institutionelle Finanzierung in Höhe von 550 Millionen US-Dollar gesichert, um diese Transaktion zu unterstützen.
Darüber hinaus wird AST SpaceMobile jährlich 80 Millionen US-Dollar für die Spektrumnutzung zahlen und Ligado langfristige Nettoeinnahmenbeteiligungsrechte anbieten. Im September 2024 startete AST SpaceMobile fünf BlueBird-Satelliten, die einen nicht kontinuierlichen Mobilfunk-Breitbanddienst in den USA anbieten. Die nächste Generation der Block 2 BlueBirds wird eine bis zu 10-fache Bandbreitenkapazität bieten und Spitzen-Datenübertragungsgeschwindigkeiten von bis zu 120 Mbps unterstützen.
- Secured long-term access to 45 MHz of lower mid-band spectrum in the US.
- Potential peak data transmission speeds up to 120 Mbps.
- Institutional financing commitment of $550 million.
- Launch of five BlueBird satellites in September 2024.
- Annual payment of $80 million for spectrum usage rights.
- Ligado to receive approximately $550 million and 4.7 million penny warrants convertible into AST SpaceMobile Class A shares.
- Transaction subject to satisfactory regulatory approvals and Ligado's restructuring.
Insights
The spectrum agreement marks a pivotal strategic advancement for AST SpaceMobile's satellite-to-phone capabilities. Access to 45 MHz of lower mid-band spectrum significantly enhances network capacity and enables peak speeds of 120 Mbps. The
The technical architecture leveraging both spectrum bands positions ASTS to deliver consistent broadband-level performance across the continental US. The 700-square-foot BlueBird satellites, expanding to 2,400 square feet in Block 2, represent unprecedented communication array sizes that maximize spectrum efficiency. With over 5,600 coverage cells planned, the network design demonstrates sophisticated frequency reuse capabilities critical for serving high subscriber densities.
This transformative deal substantially strengthens ASTS's competitive moat through secured long-term spectrum rights - a scarce and valuable asset in the satellite communications industry. The transaction structure, including
The backing of major telecoms and tech giants (AT&T, Verizon, Google, Vodafone) provides both strategic validation and potential revenue streams through partnerships covering 2.8 billion subscribers globally. The spectrum deal enhances ASTS's first-mover advantage in the direct-to-device satellite market, potentially accelerating revenue generation once the network achieves scale.
With existing 3GPP spectrum strategy and new lower mid-band satellite spectrum access, AST SpaceMobile could maximize the potential of its growing in-orbit network, expanding subscriber capacity while enabling peak data transmission speeds up to 120 Mbps to everyday smartphones everywhere in the continental
Agreement would pair AST SpaceMobile’s largest-ever commercial communication arrays deployed in low Earth orbit and planned nationwide low-band network with up to an additional 45 MHz of lower mid-band satellite spectrum capabilities, the largest available block of high-quality nationwide spectrum in
This agreement, when consummated, will add additional capabilities to AST SpaceMobile’s technology and space-based network, based on the largest-ever communications arrays deployed in low Earth orbit, pairing existing plans for the continental
“Adding premium lower mid-band spectrum access in
The binding Restructuring Support Agreement among Ligado Networks (“Ligado”), holders of approximately
Upon execution of definitive documentation, Ligado will receive approximately 4.7 million penny warrants convertible into AST SpaceMobile Class A shares, subject to a 12-month lock-up. Upon closing of the Transaction, which will be subject to receipt of satisfactory regulatory approvals required for the proposed use of the spectrum, and other closing conditions, Ligado will receive additional consideration of approximately
UBS Securities LLC is acting as exclusive financial advisor to AST SpaceMobile and Freshfields and Sullivan & Cromwell are acting as legal counsel to AST SpaceMobile.
In September 2024, AST SpaceMobile launched its first five commercial BlueBird satellites into low Earth orbit, each the largest-ever commercial communications arrays deployed into low Earth orbit, reaching approximately 700 square feet in size. These initial satellites will offer non-continuous cellular broadband service across
During 2024, AST SpaceMobile secured additional strategic investment from AT&T, Verizon, Google and Vodafone, and several contract awards with the United States Government, directly and through prime contractors. The company has agreements with more than 45 mobile network operators globally, which have over approximately 2.8 billion existing subscribers total, including Vodafone Group, AT&T, Verizon, Rakuten Mobile, Bell Canada, Orange, Telefonica, TIM, Saudi Telecom Company, Zain KSA, Etisalat, Indosat Ooredoo Hutchison, Telkomsel, Smart Communications, Globe Telecom, Millicom, Smartfren, Telecom Argentina, MTN, Telstra, Africell, Liberty Latin America and others. AT&T, Verizon, Vodafone, Google, Rakuten, American Tower, Cisneros Group and Bell Canada are also existing investors in AST SpaceMobile.
About AST SpaceMobile
AST SpaceMobile is building the first and only global cellular broadband network in space to operate directly with standard, unmodified mobile devices based on our extensive IP and patent portfolio, and designed for both commercial and government applications. Our engineers and space scientists are on a mission to eliminate the connectivity gaps faced by today’s five billion mobile subscribers and finally bring broadband to the billions who remain unconnected. For more information, follow AST SpaceMobile on YouTube, X (Formerly Twitter), LinkedIn and Facebook. Watch this video for an overview of the SpaceMobile mission.
Forward-Looking Statements
This communication contains “forward-looking statements” that are not historical facts, and involve risks and uncertainties that could cause actual results of AST SpaceMobile to differ materially from those expected and projected. These forward-looking statements can be identified by the use of forward-looking terminology, including the words “believes,” “estimates,” “anticipates,” “expects,” “intends,” “plans,” “may,” “will,” “would,” “potential,” “projects,” “predicts,” “continue,” or “should,” or, in each case, their negative or other variations or comparable terminology.
These forward-looking statements involve significant risks and uncertainties that could cause the actual results to differ materially from the expected results. Most of these factors are outside AST SpaceMobile’s control and are difficult to predict.
Factors that could cause such differences include, but are not limited to: (i) expectations regarding AST SpaceMobile’s strategies and future financial performance, including AST’s future business plans or objectives, expected functionality of the SpaceMobile Service, anticipated timing of the launch of the Block 2 Bluebird satellites, anticipated demand and acceptance of mobile satellite services, prospective performance and commercial opportunities and competitors, the timing of obtaining regulatory approvals, ability to finance its research and development activities, commercial partnership acquisition and retention, products and services, pricing, marketing plans, operating expenses, market trends, revenues, liquidity, cash flows and uses of cash, capital expenditures, and AST SpaceMobile’s ability to invest in growth initiatives; (ii) the negotiation and execution of definitive agreements with Ligado and/or other mobile network operators relating to the SpaceMobile Service that would supersede preliminary agreements and memoranda of understanding and the ability to enter into commercial agreements with other parties or government entities; (iii) the ability of AST SpaceMobile to grow and manage growth profitably and retain its key employees and AST SpaceMobile’s responses to actions of its competitors and its ability to effectively compete; (iv) changes in applicable laws or regulations; (v) the possibility that AST SpaceMobile may be adversely affected by other economic, business, and/or competitive factors; (vi) the outcome of any legal proceedings involving AST SpaceMobile or Ligado, including any bankruptcy proceedings; and (vii) other risks and uncertainties indicated in AST SpaceMobile’s filings with the Securities and Exchange Commission (SEC), including those in the Risk Factors section of AST SpaceMobile’s Form 10-Q filed with the SEC on November 14, 2024 and AST SpaceMobile’s Form 10-K filed with the SEC on April 1, 2024.
No assurance can be provided that the Transaction will be consummated or that the related financing will be disbursed. The Transaction and the disbursement of the related financing are subject to a number of conditions, including the entry into definitive documentation and the satisfaction of the closing conditions to be specified in such definitive documentation. In addition, Ligado’s ongoing bankruptcy proceedings present risks that the Transaction will not be consummated, including the risk that the Transaction will be abandoned before definitive documentation is approved by the bankruptcy court. Moreover, even if the Transaction is consummated, the benefits of the Transaction will be subject to integration, technology and regulatory risks, as well as the risks to AST SpaceMobile referenced in the preceding paragraph.
AST SpaceMobile intends to file publicly with the SEC, on Form 8-K within the next four business days, a copy of the Restructuring Support Agreement, including the term sheet that is part of the Restructuring Support Agreement and sets forth the terms of the Transaction. The description of the Transaction contained in this press release is subject to the more complete description that will be available in such Form 8-K and the exhibit thereto.
AST SpaceMobile cautions that the foregoing list of factors is not exclusive. AST SpaceMobile cautions readers not to place undue reliance upon any forward-looking statements, which speak only as of the date made. For information identifying important factors that could cause actual results to differ materially from those anticipated in the forward-looking statements, please refer to the Risk Factors in AST SpaceMobile’s Form 10-Q filed with the SEC on November 14, 2024, and Form 10-K filed with the SEC on April 1, 2024. AST SpaceMobile’s securities filings can be accessed on the EDGAR section of the SEC’s website at www.sec.gov. Except as expressly required by applicable securities law, AST SpaceMobile disclaims any intention or obligation to update or revise any forward-looking statements whether as a result of new information, future events or otherwise.
View source version on businesswire.com: https://www.businesswire.com/news/home/20250106998015/en/
Investor Contact:
Scott Wisniewski
investors@ast-science.com
Media Contact:
Allison
Eva Murphy Ryan
917-547-7289
AstSpaceMobile@allisonpr.com
Source: AST SpaceMobile, Inc.
FAQ
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