Texas-based AST SpaceMobile announced Thursday that it has received a $155 million strategic investment from AT&T, Google and Vodafone. The company is working to develop what could be the first space-based cellular broadband network that can be accessed directly using a smartphone, and also plans to secure up to $51.5 million in credits.
Google will work with the company to product develop, test, and implement SpaceMobile network connectivity on Android and related devices.
AST SpaceMobile operates the BlueWalker 3 satellite. This is the largest commercial communications array ever in low Earth orbit, according to the company. Based on existing cellular communications standards, it is patented and designed to facilitate direct Internet connectivity to unmodified cellular devices. In contrast, if you want internet service, you will need a dedicated satellite downlink terminal.
In 2023, the company collaborated with AT&T, Vodafpone, Rakuten, and Nokia to directly demonstrate 2G, 4G, and 5G calling and download speeds of 14Mbps on a 5Mhz channel from satellite to regular smartphones.
Strategic investments include $110 million in 10-year convertible notes with a coupon rate of 5.5%. The agreement allows investors to convert their investments into equity at a rate of $5.75 per share. This is a 39% premium compared to the company's price listed on the Nasdaq stock exchange on Tuesday.
In addition, AT&T has committed $20 million in revenue, conditional on AST SpaceMobile launching and operating its first five commercial satellites. Vodafone has also promised him at least $25 million in revenue, subject to a final deal being signed. AT&T and Vodafone have also ordered network equipment from AST SpaceMobile for an undisclosed amount to support future commercial services.
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Originally uploaded to: January 20, 2024, 09:42 IST
