AST SpaceMobile Secures Access to Lower Mid-Band Spectrum in the United States

On January 6, 2025, AST SpaceMobile, Inc. filed a Form 8-K with the Securities and Exchange Commission (SEC), announcing a significant agreement. The company revealed that it has entered into a binding agreement with Ligado Networks, which will grant AST SpaceMobile long-term access to up to 45 MHz of lower mid-band spectrum in the United States for direct-to-device satellite applications.

This agreement is a significant move for AST SpaceMobile, allowing the company to enhance its planned space-based cellular broadband offering. The access to this premium lower mid-band spectrum will enable AST SpaceMobile to deliver peak data transmission speeds of up to 120 Mbps directly to everyday smartphones across the continental United States.

The binding agreement with Ligado Networks outlines the terms under which AST SpaceMobile will secure spectrum usage rights for over 80 years. As part of the agreement, AST SpaceMobile will have access to a substantial block of L-Band MSS spectrum in the United States and Canada, along with an additional 5 MHz in the 1670-1675 MHz Band in the United States. The completion of this transaction is expected to occur in the first half of 2025, subject to definitive documentation and regulatory approvals.

Upon the finalization of the transaction, Ligado will receive equity in AST SpaceMobile, with approximately 4.7 million penny warrants convertible into Class A shares of the company. In addition to this, upon meeting all closing conditions, Ligado will receive around $550 million in consideration. To facilitate this, AST SpaceMobile has secured a $550 million institutional financing commitment.

AST SpaceMobile has made significant strides in its technology and network development, launching its first commercial BlueBird satellites into orbit. These satellites are part of AST SpaceMobile’s mission to eliminate connectivity gaps globally and provide broadband services to underserved populations. The company has also received investments from major industry players like AT&T, Verizon, Google, and Vodafone, highlighting growing support and interest in its innovative space-based cellular broadband network.

In light of these recent developments, AST SpaceMobile’s strategic positioning and expansion efforts are set to reshape the landscape of satellite-based communication services. With a growing network of global mobile network operator partnerships and a commitment to enhancing connectivity on a global scale, AST SpaceMobile continues to make strides towards a future where universal broadband access becomes a reality.

This article was generated by an automated content engine and was reviewed by a human editor prior to publication. For additional information, read AST SpaceMobile’s 8K filing here.

AST SpaceMobile Company Profile

AST SpaceMobile, Inc, together with its subsidiaries, develops and provides access to a space-based cellular broadband network for smartphones in the United States. Its SpaceMobile service provides cellular broadband services to end-users who are out of terrestrial cellular coverage. The company was founded in 2017 and is headquartered in Midland, Texas.