AST SpaceMobile (NASDAQ: ASTS) Stock Skyrockets on AT&T Partnership

AST SpaceMobile (NASDAQ: ASTS) stock surged for a second consecutive day on Friday, following a nearly 70% jump in intraday trading on Thursday. This rally came after AST SpaceMobile announced a definitive commercial agreement with AT&T (T).

AT&T (T) and AST SpaceMobile (ASTS) have inked a landmark commercial deal to launch a space-based broadband network that will link directly to standard cell phones. This collaboration will extend until 2030 and represents a significant stride forward in enhancing connectivity across the United States.

These two industry giants first collaborated in 2018, and their latest agreement culminated in a series of successful demonstrations. Notably, in 2023, the partnership achieved a groundbreaking milestone with the first-ever space-based voice call, text, and video call between standard smartphones.

This summer, AST SpaceMobile plans to dispatch its initial five commercial satellites to Cape Canaveral for launch into low Earth orbit. These satellites will provide two-way connectivity, bridging coverage gaps in remote and wilderness areas, including national parks, rural highways, and other hard-to-reach regions across the continental U.S.

Moreover, Chris Sambar, Head of Network of AT&T, will join AST SpaceMobile’s board of directors, further solidifying the strategic partnership between the two companies.

Jeff McElfresh, AT&T’s Chief Operating Officer, views the agreement as a testament to the company’s commitment to leveraging emerging satellite technologies to provide services in previously inaccessible areas.

Abel Avellan, Founder, Chairman, and CEO of AST SpaceMobile, expressed enthusiasm about the partnership with AT&T, stating,

“Working together with AT&T has paved the way to unlock the potential of space-based cellular broadband directly to everyday smartphones. We are thrilled to solidify our collaboration through this landmark agreement. We aim to bring seamless, reliable service to consumers and businesses across the continental U.S., transforming the way people connect and access information.”