AT&T, Google and Vodafone back AST’s space-based 5G connectivity

AST SpaceMobile, which aims to build a space-based cellular broadband network accessible by everyday smartphones, has announced strategic investment from AT&T, Google and Vodafone.

The goal is for its in-orbit technology to eliminate cellular connectivity gaps around the world.

In addition to the $155 million invested by the companies, AST SpaceMobile plans to draw up to $51.5 million from the company’s existing senior-secured credit facility, it said.

For the company’s planned operational satellites, beams will support capacity of up to 40 Mhz, potentially enabling data transmission speeds of up to 120 Mbps.

The company says it has over 40 agreements with mobile network operators globally, who collectively service 2 billion subscribers.

5G

In September last year that the company achieved a space-enabled 5G cellular broadband connection, on a standard smartphone, in a test ahead of launching its commercial service later this year.

The connection used the company’s BlueWalker 3 test satellite (pictured) and AT&T spectrum – in collaboration with Vodafone, AT&T, and Nokia. Its space-based cellular data session record is a download rate of approximately 14 Mbps, we reported.

AST Partners

“With this strategic investment, we are gaining capital, invaluable expertise, and strategic partnership,” said Abel Avellan, Chairman and CEO of AST SpaceMobile.

“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.”

Recently AST also announced public offering of its Class A common stock.

“The gross proceeds to the Company from the offering, before deducting underwriting discounts, commissions and other offering expenses, will be approximately $100,000,000 million ($115,000,000 million if the underwriter exercises its option to purchase additional shares in full).”

The company says it intends to use proceeds for general corporate purposes.