AST SpaceMobile, Inc. (NASDAQ:ASTS) shares surging premarket on Wednesday after the company disclosed a definitive commercial agreement with Verizon Communications Inc. (NYSE:VZ).
Starting in 2026, the partnership will enable direct-to-cellular connectivity for Verizon customers, extending the carrier's network coverage and enhancing its existing high-quality, nationwide service.
The partnership combines Verizon's robust terrestrial network, premium 850 MHz multi-operator spectrum, and AST SpaceMobile's low-Earth-orbit (LEO) satellite technology to deliver seamless connectivity for customers, whether in remote areas, cities, or anywhere in between.
AST SpaceMobile's network connects directly to standard smartphones without specialized hardware.
It operates across low-band, L-band, and S-band, as well as up to 1,150 MHz of partner low- and mid-band spectrum, advancing the company's progress toward full-scale commercial service.
Abel Avellan, founder, chairman and CEO of AST SpaceMobile commented. "The agreement will extend the scope of Verizon's 850 MHz premium low-band spectrum into areas of the U.S. that would benefit from the ubiquitous reach of space-based broadband technology."
On Tuesday, AST SpaceMobile entered into an Equity Distribution Agreement to sell up to $800 million of the company's common stock in an at-the-market offering program with up to a three-year term.
Investors can gain exposure to the stock Procure Space ETF (NASDAQ:UFO) and iShares U.S. Telecommunications ETF (BATS:IYZ).
Price Action: ASTS shares are up 13.16% at $84.59 in the premarket as of the last check on Wednesday.
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