Verizon signs deal with AST SpaceMobile to provide cellular service from space. AST shares surge

AST SpaceMobile on Wednesday announced a deal with Verizon to provide cellular service from space beginning next year.

This deal aims to bring direct-to-service connection via space to cell phone users “when needed” on Verizon plans, according to AST. It marks an expansion of a partnership between the two companies announced last year.

AST shares surged more than 8% before the bell on Wednesday. The volatile space stock was up more than 250% for the year before this deal was announced. Verizon shares added 0.8%.

“Through our definitive commercial agreement with Verizon, we are working to deliver space-based cellular broadband coverage from space across the continental United States,” said Abel Avellan, founder at CEO of AST, in a press release. 

Terms of the deal were not immediately available.

Stock Chart IconStock chart icon

AST SpaceMobile, YTD

Avellan said this deal will extend Verizon’s 850 MHz premium low-band spectrum into areas of the U.S. that could get a coverage boost from AST’s space-based broadband offering.

AST said this deal comes after it has proven capabilities through recent tests of its space network. The company bills itself as the “first and only” global cellular network operating in space directly through standard devices that can be used in both commercial and government settings.