AST SpaceMobile surged Monday after the satellite telecommunications company signed a long-term deal with Vodafone.
AST SpaceMobile and Vodafone agreed to a long-term commercial contract that will run through 2034. The deal establishes a framework for Vodafone to offer space-based cellular broadband connectivity in its home markets in Europe and Africa, as well as other telecommunications operators via its Partner Markets program.
Vodafone also placed an order for its first Block 1 BlueBird gateway, which allows everyday smartphones to connect to AST SpaceMobile's satellites in low-Earth orbit. The gateways then connect to Vodafone's existing network infrastructure to access the internet and third-party apps.
Vodafone has been a three-time investor in AST SpaceMobile since 2018 and a key technology partner in the company's development. AST has secured strategic investments from the likes of AT&T, Verizon and Google, as well as contracts with the U.S. government.
The satellite company also has agreements with more than 45 network operators, which have about 2.8 billion existing subscribers.
AST SpaceMobile Could Revolutionize Cellphone Satellite Service. But Can It Beat The Meme Stock Rap?
AST SpaceMobile has just started building what it plans as a space-based cellular broadband network, differentiated by its ability to enable some types of everyday smartphones to connect to orbiting satellites. The company's goal is to provide connectivity worldwide at 4G/5G speeds for both government and commercial applications. On Sept. 12, it successfully launched its first five commercial BlueBird satellites with its partner SpaceX. Those units unfolded and completed deployment at the end of October. AST SpaceMobile could eventually include 168 satellites in its constellation, according to reports.
AST's satellites have some overlap and competition with SpaceX subsidiary Starlink.
Upcoming Satellite Launches
Elsewhere, AST SpaceMobile in mid-November announced a new launch services agreement for its next block of 60 satellites, which will launch to orbit in 2025 and 2026. The company says the agreement will enable continuous space-based cellular broadband coverage across key global markets.
AST SpaceMobile's global service will initially target the U.S., Europe and Japan, as well as services for the U.S. government and other key markets. The company plans to utilize existing launch vehicles and Blue Origin's New Glenn rocket for the launches.
Meanwhile, SpaceX plans two separate Falcon 9 launches on Dec. 12, according to reports from SpaceFlightNow. The first launch will carry a batch of Starlink satellites into low Earth Orbit. The second Falcon 9 launch will transport a pair of O3b mPOWER satellites to medium Earth orbit for Luxembourg-based SES.
Rival Rocket Lab is expected to launch an Electron rocket to carry a StriX satellite for Japan-based Synspective on Dec. 17 or 18, depending on conditions during the launch window.
AST SpaceMobile Stock
ASTS stock pared gains to 2.7% Monday after rallying more than 13% in early trade.
The move put ASTS stock just above a downsloping trendline in a four-month consolidation. Aggressive investors could use that break as a possible entry point.
However, the company is still unprofitable and just started recording revenue the past three quarters.
Still, AST SpaceMobile stock has rocketed nearly 331% this year.
Rocket Lab stock tumbled almost 6% Monday, trimming its 2024 gains to 320%.
You can follow Harrison Miller for more stock news and updates on X/Twitter @IBD_Harrison
