Vodafone and AT&T have also placed purchase orders for network equipment from AST SpaceMobile to support planned commercial service.
AST SpaceMobile has announced a strategic investment of up to $206.5m from industry giants AT&T, Google, and Vodafone. This substantial financing, which includes a $155m strategic investment and the potential draw of $51.5m from the company’s existing senior-secured credit facility, underscores confidence in AST SpaceMobile’s leadership and its cutting-edge position in the emerging space-based cellular direct-to-device market.
New investors AT&T and Google, alongside existing investor Vodafone, are renowned for their contributions to wireless innovation, serving billions of people globally with their products and services. This investment signals strong confidence in AST SpaceMobile’s technology, highlighting its potential to provide connectivity to the 5.5bn cellular devices worldwide when they are out of coverage.
AST SpaceMobile, currently operating the largest-ever commercial communications array in low Earth orbit, pioneered the space-based direct-to-device market. Its patented design enables broadband connectivity directly to standard, unmodified cellular devices, adhering to today’s cellular standards. In 2023, the company achieved historic technical milestones in space-based cellular communications, including demonstrations of 2G, 4G LTE, and 5G calls, and 14 Mbps download speeds per 5 MHz channels directly from space to everyday smartphones.
Abel Avellan, Chairman and CEO of AST SpaceMobile, said: Our vision at AST SpaceMobile has always been to chart a course of collaborative innovation and integration with the world’s leading wireless companies, which is why we are so thrilled to be welcoming this new strategic investment from AT&T, Google and Vodafone. With this strategic investment, we are gaining capital, invaluable expertise, and strategic partnership. This investment comes alongside prior investments by other leaders in the wireless ecosystem, including Rakuten, American Tower, and Bell Canada, all of whom are not only part owners of AST SpaceMobile but also serve as our technology partners and customers. Each new partnership signifies that market leaders worldwide have tremendous confidence in our vision and ability to ensure that the future of cellular broadband is borderless.”
Chris Sambar, Executive Vice President, Head of Network, AT&T, added: Through our work with AST SpaceMobile, weve already proven the possibilities that satellite has to offer in helping connect more people via text, voice and video. Were excited to deepen our relationship with this investment as we continue to drive a first-of-its-kind innovation forward and work together to achieve this shared vision of space-based connectivity for consumers, businesses and first responders all around the globe.
Margherita Della Valle, Vodafone Group chief executive, stated: Vodafones investment and collaboration with AST SpaceMobile will help make our mobile connectivity services available everywhere for our customers across Europe and Africa. Customers in remote rural areas, on land or out at sea, will be able to benefit from fast and reliable 5G broadband directly to their existing smartphones without the need for specialist equipment.
The strategic investment, consisting of a mix of equity-linked capital and non-dilutive commercial payments, aims to support the commercial roll-out of AST SpaceMobile’s network. Notable components of the investment include $110m of 10-year subordinated convertible notes with 5.50% interest, invested by AT&T, Google, and Vodafone; a $20m revenue commitment from AT&T tied to the successful launch and initial operation of the first five commercial satellites; and a $25m minimum revenue commitment from Vodafone, contingent upon a definitive agreement.
In addition to the investment, the new partners have expanded their strategic and commercial ties. Vodafone and AT&T have placed purchase orders for network equipment from AST SpaceMobile to support the planned commercial service, while Google and AST SpaceMobile are set to collaborate on product development, testing, and implementation plans for SpaceMobile network connectivity on Android and related devices.
