AT&T, Google, and Vodafone Make Strategic Investment in AST SpaceMobile.

Image Credits: ast-science.com

AST SpaceMobile, Inc. (NASDAQ: ASTS), a trailblazer in space-based cellular broadband networks accessible directly by everyday smartphones, has just announced a significant strategic investment.

This investment comes from industry giants AT&T, Google, and Vodafone, amounting to a total new financing of up to $206.5 million in gross proceeds. In addition to the substantial $155 million strategic investment, the company plans to draw up to $51.5 million from its existing senior-secured credit facility.

New investors AT & T and Google, along with existing investor Vodafone, are recognized leaders in wireless innovation, providing products and services to billions of people daily. This investment underlines their confidence in AST SpaceMobile's technology and leadership position in the emerging space-based cellular direct-to-device market. The company aims to offer connectivity to the 5.5 billion cellular devices worldwide when they are out of coverage.

AST SpaceMobile currently operates the largest-ever commercial communications array in low Earth orbit, known as the BlueWalker 3 satellite. The company, credited with inventing the space-based direct-to-device market, showcases a patented design that enables broadband connectivity directly to standard, unmodified cellular devices, adhering to current cellular standards. In collaboration with partners like AT&T, Vodafone, Rakuten, and Nokia, AST SpaceMobile achieved historic technical milestones in space-based cellular communications in 2023.

With over 40 agreements with mobile network operators globally, AST SpaceMobile's pioneering technology is poised to eliminate cellular connectivity gaps worldwide. The strategic investment, totaling $206.5 million, includes a mix of equity-linked capital and non-dilutive commercial payments. Notably, this investment aims to support the commercial roll-out of AST SpaceMobile's network.

Abel Avellan, Chairman and CEO of AST SpaceMobile, expressed excitement about welcoming the strategic investment from AT&T, Google, and Vodafone. He emphasized the importance of gaining capital, expertise, and strategic partnership to ensure a borderless future for cellular broadband.

Chris Sambar , Executive Vice President, Head of Network, AT&T, highlighted the possibilities that satellite connectivity offers, expressing excitement about deepening their relationship with AST SpaceMobile. Margherita Della Valle , Vodafone Group Chief Executive, emphasized how the collaboration with AST SpaceMobile will make mobile connectivity services available everywhere for Vodafone customers across Europe and Africa.

The strategic investment also includes specific commitments, such as $110 million of 10-year subordinated convertible notes with 5.50% interest, revenue commitments from AT&T and Vodafone, and non-dilutive commercial payments by customers of the SpaceMobile network. The investors have further expanded their strategic and commercial ties to support the buildout of the SpaceMobile network, including purchase orders for network equipment and collaboration on product development, testing, and implementation plans with Google.