TLDR
- AST SpaceMobile signed a commercial agreement with Verizon to provide direct-to-cell satellite service starting in 2026
- ASTS stock jumped 8.64% on the news, with shares trading at $81.21
- The service will use Verizon’s 850 MHz spectrum and connect to standard smartphones without special equipment
- AST SpaceMobile is burning over $675 million in cash annually with $924 million in reserves
- The company previously signed a similar deal with AT&T in May 2025
AST SpaceMobile stock climbed 8.64% on Thursday after announcing a commercial agreement with Verizon. The deal will bring space-based cellular service to Verizon customers in 2026.
Shares traded at $81.21 following the announcement. The stock has gained over 245% year-to-date as the company moves closer to commercial operations.
The partnership builds on a strategic relationship announced in early 2024. Verizon will integrate AST SpaceMobile’s satellite network with its existing terrestrial infrastructure.
AST SpaceMobile Announces Definitive Commercial Agreement with Verizon to Support Space-Based Cellular Broadband Across the Continental United Stateshttps://t.co/KQcCr4YYSF pic.twitter.com/VlSD5ndueD
— AST SpaceMobile (@AST_SpaceMobile) October 8, 2025
The service will use Verizon’s 850 MHz premium low-band spectrum. This will extend coverage across the continental United States to areas where traditional cell towers can’t reach.
AST SpaceMobile’s technology connects directly to everyday smartphones. Users won’t need any specialized equipment to access the space-based service.
Abel Avellan, founder and CEO of AST SpaceMobile, said the agreement extends Verizon’s spectrum into areas that would benefit from space-based broadband. Srini Kalapala, Verizon’s senior vice president of technology and product development, described the partnership as a step forward in connecting everyone regardless of geography.
Building Out the Constellation
AST SpaceMobile operates what it calls the largest-ever commercial communications arrays in low Earth orbit. The company pioneered the direct-to-cell concept and has been working to demonstrate its viability.
The network operates across multiple spectrum bands. These include premium low-band spectrum, AST SpaceMobile’s licensed L-band and S-band spectrum, and up to 1,150 MHz of partner operators’ spectrum globally.
Financial terms of the Verizon agreement were not disclosed. The deal marks the second major U.S. carrier partnership for AST SpaceMobile this year.
The company signed a similar agreement with AT&T in May 2025. That partnership involves launching five satellites into low-Earth orbit to provide commercial service.
AST SpaceMobile secured a multi-year, multi-launch agreement with Blue Origin. The launches are scheduled for 2025 and 2026 and will deploy approximately 60 next-generation Block 2 BlueBird satellites using New Glenn rockets.
In August 2025, the company acquired global S-Band spectrum priority rights for $64.5 million. This acquisition enhances its planned space-based cellular broadband offerings.
Cash Burn and Funding Concerns
AST SpaceMobile is burning more than $675 million in cash annually. The company has $924 million in cash reserves, which could last approximately 16 months at the current burn rate.
The company announced a proposed private offering of $500 million convertible senior notes due 2032 in July 2025. The notes are intended for general corporate purposes, including funding satellite launches.
ASTS stock declined 9.44% in after-hours trading following that announcement. Investors expressed concerns about potential dilution from the convertible notes.
The stock’s market valuation now approaches $30 billion. This high valuation gives AST SpaceMobile the option to raise additional capital through share sales if needed.
The company faces competition in the space-based cellular market. SpaceX’s Starlink service competes in this sector, and EchoStar sold 5G spectrum licenses to SpaceX in September 2025, causing ASTS stock to drop 9%.
The Verizon partnership provides AST SpaceMobile with access to one of the largest wireless carriers in the United States. The company now has agreements with two major U.S. telecommunications providers as it prepares for commercial service launch in 2026.
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