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Texas-based AST SpaceMobile on Thursday announced that it received a $155 million strategic investment from AT&T, Google and Vodafone. The company is working on 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 an additional $51.5 million in credit.
Google will collaborate with the company on product development, testing and implementation of SpaceMobile network connectivity on Android and related devices.
AST SpaceMobile operates its BlueWalker 3 satellite, which, according to it, is the largest-ever commercial communications array in low-Earth orbit. It has patents that are designed to facilitate internet connectivity directly to unmodified cellular devices on existing cellular communication standards. In sharp contrast, you would need a special satellite downlink terminal while using internet service.
The company in 2023 worked with AT&T, Vodafpone, Rakuten and Nokia to demonstrate 2G, 4G and 5G calls along with 14 Mbps download speeds over 5 Mhz channels directly from its satellite to normal smartphones.
The strategic investment includes $110 million of 10-year convertible notes with a 5.5 per cent interest. With this agreement, the investors can convert their investment into shares at a rate of $5.75 per share. That is a 39 per cent premium over the publicly-listed company’s price on the NASDAQ stock exchange on Tuesday.
Additionally, AT&T has committed $20 million in revenue provided that AST SpaceMobile launches and begins successful operations of the first five commercial satellites. Vodafone has also committed atleast $25 million in revenue, which will be subject to the creation of a definitive agreement. Also, AT&T and Vodafone have placed purchase orders for network equipment from AST SpaceMobile to support their future commercial services for an undisclosed amount.
