AST SpaceMobile Announces Definitive Commercial Agreement with Vodafone Through 2034

Rhea-AI Summary

AST SpaceMobile (NASDAQ: ASTS) and Vodafone have signed a definitive commercial agreement through 2034, enabling Vodafone to offer space-based cellular broadband in its markets. Vodafone, a three-time investor in AST SpaceMobile, has ordered its first Block 1 BlueBird gateway for network infrastructure deployment.

The partnership has achieved several milestones, including the first space-based voice call to an unmodified phone in April 2023, first 4G download speed above 10 Mbps in June 2023, and first 5G voice call in September 2023. The next-generation Block 2 BlueBirds, featuring 2,400 square foot arrays, are designed to deliver up to 120 Mbps speeds.

AST SpaceMobile has secured additional investments from AT&T, Verizon, Google, and Vodafone in 2024, and has agreements with over 45 mobile network operators representing approximately 2.8 billion subscribers globally.

Positive

• Secured long-term commercial agreement with Vodafone through 2034
• Received first Block 1 BlueBird gateway order from Vodafone
• Demonstrated successful technology with 20 mbps download speeds to unmodified phones
• Next-gen satellites capable of up to 120 Mbps speeds
• Secured additional strategic investments from major tech companies in 2024
• Expanded network of agreements covering 2.8 billion potential subscribers

Negative

• None.

Insights

Financial Analyst

This definitive commercial agreement with Vodafone through 2034 represents a major milestone for AST SpaceMobile. The deal secures a long-term revenue stream and validates their space-based cellular technology. With Vodafone's massive presence in Europe and Africa, plus their Partner Markets program, this significantly expands ASTS's potential market reach. The agreement, combined with recent investments from tech giants like AT&T, Verizon and Google, strengthens ASTS's financial position and market credibility.

The company's technology demonstrations showing 20 Mbps download speeds and successful 5G calls prove commercial viability. The next-gen Block 2 BlueBirds' capability of 120 Mbps speeds could revolutionize global connectivity. With agreements covering 2.8 billion potential subscribers through 45+ mobile operators, ASTS is positioning itself as a leader in the space-based cellular market.

Tech Expert

The technical achievements demonstrated by AST SpaceMobile are groundbreaking. Achieving direct-to-device connectivity with unmodified smartphones for 2G, 4G and 5G represents a significant technological leap. The 20 Mbps speeds on a 5 MHz channel is impressive, but the planned Block 2 BlueBirds with 2,400 square foot arrays promising 6x improvement is even more remarkable.

Vodafone's order for the first Block 1 BlueBird gateway is important for infrastructure deployment. The gateway architecture, connecting satellites to existing network infrastructure, is elegantly designed for seamless integration. This approach minimizes deployment complexity while maximizing coverage potential. The technology's ability to support voice, data and video applications positions ASTS uniquely in the satellite communications market.

Agreement sets up Vodafone to offer space-based cellular broadband in its home and partner markets

MIDLAND, Texas--(BUSINESS WIRE)-- AST SpaceMobile, Inc. (“AST SpaceMobile”) (NASDAQ: ASTS), the company building the first and only space-based cellular broadband network accessible directly by everyday smartphones, designed for both commercial and government applications, and Vodafone Group Plc (Vodafone) (LSE: VOD), a leading European and African telecommunications company, announced today that they have entered into a definitive long-term commercial agreement through 2034. This is a significant step forward in their collaboration to expand broadband connectivity globally.

Vodafone and AST SpaceMobile entered into a definitive long-term commercial agreement through 2034 (Graphic: Business Wire)

This agreement establishes the framework for Vodafone to offer space-based cellular broadband connectivity in its home markets, as well as to other operators via its Partner Markets program.

Since 2018, Vodafone, one of the largest telecommunications companies in the world, has been a three-time investor in AST SpaceMobile, and is a key technology partner in AST SpaceMobile's development, including several world’s firsts in direct-to-device connectivity with everyday smartphones that confirmed 2G, 4G and 5G capabilities. In April 2023, AST SpaceMobile and its partners completed the first-ever space-based voice call to an unmodified phone. That was followed by the first-ever 4G download speed above 10 Mbps in June 2023 and the first-ever 5G voice call in September 2023. Ultimately, the company and its partners have demonstrated over 20 mbps download speeds to unmodified phones on a 5 Mhz channel.

Vodafone has placed an order for its first Block 1 BlueBird gateway, marking a milestone in the deployment of AST SpaceMobile's global network infrastructure. Users outside traditional cellular coverage will be able to connect their everyday smartphones directly to AST SpaceMobile's satellites in low Earth orbit, which in turn will route the data to the gateway. These gateways will then connect to Vodafone's existing network infrastructure to route the broadband data to users' devices, as well as to access third-party Apps and the Internet.

The next-generation Block 2 BlueBirds featuring up to 2,400 square foot communications arrays, are designed to deliver up to 10 times the bandwidth capacity of the BlueBird satellites in orbit today, enabling peak data transmission speeds up to 120 Mbps, supporting voice, full data, and video applications.

During 2024, AST SpaceMobile has secured additional strategic investment from AT&T, Verizon, Google and Vodafone, and new 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. 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.

About Vodafone

Vodafone is a leading European and African telecoms company. We provide mobile and fixed services to over 330 million customers in 15 countries (excludes Italy which is held as a discontinued operation under Vodafone Group), partner with mobile networks in 45 more and have one of the world’s largest IoT platforms. In Africa, our financial technology businesses serve almost 83 million customers across seven countries – managing more transactions than any other provider.

Our purpose is to connect for a better future by using technology to improve lives, businesses and help progress inclusive sustainable societies. We are committed to reducing our environmental impact to reach net zero emissions by 2040.

For more information, please visit www.vodafone.com follow us on X at @VodafoneGroup or connect with us on LinkedIn at www.linkedin.com/company/vodafone.

Registered Office: Vodafone House, The Connection, Newbury, Berkshire RG14 2FN, England. Registered in England No. 1833679

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 may 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’s ability to invest in growth initiatives; (ii) the negotiation of definitive agreements with 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 that may be instituted against AST SpaceMobile; and (vii) other risks and uncertainties indicated in the Company’s filings with the SEC, including those in the Risk Factors section of AST SpaceMobile’s Form 10-K filed with the SEC on April 1, 2024.

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 incorporated by reference into AST SpaceMobile’s 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/20241208628293/en/

AST SpaceMobile

Investor Contact:

Scott Wisniewski

investors@ast-science.com

Media Contacts:

Allison

Eva Murphy Ryan

917-547-7289

AstSpaceMobile@allisonpr.com

Vodafone:

Investor relations:

investors.vodafone.com

ir@vodafone.co.uk

Media relations:

Vodafone.com/media/contact

GroupMedia@vodafone.com

Source: AST SpaceMobile, Inc.

FAQ

What is the duration of AST SpaceMobile's (ASTS) commercial agreement with Vodafone?

AST SpaceMobile's commercial agreement with Vodafone extends through 2034.

What download speeds has AST SpaceMobile (ASTS) achieved in its space-based cellular tests?

AST SpaceMobile has demonstrated over 20 mbps download speeds to unmodified phones on a 5 Mhz channel.

When did AST SpaceMobile (ASTS) complete its first space-based voice call?

AST SpaceMobile completed the first-ever space-based voice call to an unmodified phone in April 2023.

What is the potential subscriber reach of AST SpaceMobile's (ASTS) mobile network operator agreements?

AST SpaceMobile has agreements with over 45 mobile network operators globally, representing approximately 2.8 billion existing subscribers.