Shares of AST SpaceMobile surged 12% to $83.43 in premarket trading on Wednesday after the company announced a partnership with Verizon Communications to offer space-based broadband connectivity to the carrier’s customers starting in 2026.
The Texas-based satellite communications company said the commercial agreement will allow Verizon users to stay connected in remote and underserved areas, marking a significant step in expanding next-generation connectivity beyond traditional cell towers.
AST SpaceMobile’s stock has already more than tripled over the past year, underscoring investor confidence in its long-term growth prospects.
Expanding connectivity beyond cell towers
Under the agreement, AST SpaceMobile’s satellite network will integrate with Verizon’s terrestrial systems to deliver seamless broadband access directly to standard smartphones.
Unlike traditional satellite phones, AST’s technology allows users to connect without specialized equipment — a key differentiator in the fast-evolving satellite-to-cellular market.
“By integrating our expansive, reliable, robust terrestrial network with this innovative space-based technology, we are paving the way for a future where everything and everyone can be connected, regardless of geography,” said Srini Kalapala, Verizon’s senior vice president of technology and product development.
AST SpaceMobile Chief Executive Abel Avellan said the collaboration will extend Verizon’s 850 MHz low-band spectrum into areas that currently lack reliable coverage.
“The agreement will extend the scope of Verizon’s 850 MHz premium low-band spectrum into areas of the US that would benefit from the ubiquitous reach of space-based broadband technology,” he said.
Included in the expanded reach will be remote areas such as hiking trails, the company said.
Race to dominate satellite broadband
AST SpaceMobile positions itself as the “first and only” company to build a global cellular network in space that connects directly to regular smartphones.
The firm has demonstrated the viability of its technology through a series of tests over the past year, showcasing how its low-Earth orbit satellites can provide broadband coverage over vast areas.
However, competition in the satellite-to-phone segment is intensifying.
UBS downgraded AST SpaceMobile’s rating to “Neutral” last month, citing growing rivalry in the sector.
The brokerage noted that Elon Musk’s Starlink recently strengthened its market position by acquiring EchoStar’s S-Band spectrum for $19 billion — a move that could enhance its own satellite-to-cellular offerings.
UBS analyst Christopher Schoell said while AST still holds a technological advantage through its ability to connect unmodified smartphones across multiple spectrum bands, Starlink’s expanded resources could raise the stakes.
Schoell now expects AST to achieve profitability by 2027 and reach revenue of around $3 billion by 2030, slightly lower than earlier forecasts.
Despite near-term competitive pressures, analysts see long-term promise in AST’s business model.
Its approach—bridging space and terrestrial connectivity—could play a vital role in extending digital infrastructure to areas where building traditional networks is cost-prohibitive.
The partnership with Verizon underscores that mainstream carriers view satellite integration as a key enabler for universal coverage.
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