Insider Brief:
- AST SpaceMobile has announced a strategic investment of $206.5 million from industry giants AT&T, Google, and Vodafone that will go towards the company’s mission of closing the global connectivity gap by providing 5G broadband service from space to billions of people worldwide.
- AST SpaceMobile’s innovative approach involves operating the largest-ever commercial communications array in low Earth orbit, with the BlueWalker 3 satellite paving the way for direct-to-device connectivity.
- The company’s achievements include technical first-evers in space-based cellular communications, such as 2G, 4G LTE, and 5G calls.
AST SpaceMobile, the company behind the first space-based cellular broadband network accessible by everyday smartphones, has announced a strategic investment of $206.5 million from industry giants AT&T, Google, and Vodafone. The investment, comprising convertible notes, non-dilutive commercial payments, and a draw from the company’s credit facility, aims to accelerate AST SpaceMobile’s mission of closing the global connectivity gap by providing 5G broadband service from space to billions of people worldwide.
This significant funding comes alongside the endorsement and collaboration of wireless leaders AT&T and Google, along with existing investor Vodafone. AST SpaceMobile’s innovative approach involves operating the largest-ever commercial communications array in low Earth orbit, with the BlueWalker 3 satellite paving the way for direct-to-device connectivity, adhering to current cellular standards. The company’s achievements include technical first-evers in space-based cellular communications, such as 2G, 4G LTE, and 5G calls, showcasing its potential to offer connectivity to over 5.5 billion cellular devices when they are out of coverage.
The strategic investment is intended to support the commercial rollout of AST SpaceMobile’s network, with AT&T, Google, and Vodafone contributing $155 million in convertible notes, alongside additional revenue commitments tied to the launch and operation of commercial satellites. The non-dilutive commercial payments by SpaceMobile network customers provide a model for global wireless companies to participate in the initial rollout of commercial service.
Key collaborations resulting from the investment include purchase orders for network equipment by Vodafone and AT&T, and a strategic collaboration between Google and AST SpaceMobile to develop, test, and implement SpaceMobile network connectivity on Android and related devices.
Abel Avellan, Chairman and CEO of AST SpaceMobile, expressed enthusiasm about the collaboration, emphasizing the company’s commitment to collaborative innovation and integration with leading wireless companies. The strategic investment reflects the wireless industry’s confidence in AST SpaceMobile’s vision and technology, positioning it as a promising solution to eliminate cellular connectivity gaps worldwide.
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