Verizon Communications Inc. is set to transform its cellular offering in the United States following an agreement with AST SpaceMobile to provide cellular service from space, a service expected to be launched in 2026. This ground-breaking tie-up, which expands on a strategic partnership established earlier in 2024, has significantly boosted investor excitement, particularly for the satellite firm.
Following the announcement, shares of AST SpaceMobile surged by 10% on Wednesday, while Verizon’s stock slipped 0.5%.
The core of the deal is the deployment of a low-Earth orbit satellite network, a system engineered to connect with standard, unmodified mobile phones. This technology is designed to eliminate notorious dead zones across the continental United States.
AST SpaceMobile has stated its network is capable of operating across a range of spectrums, including its own licensed L-band and S-band, and will notably leverage Verizon’s own premium low-band spectrum. Though the precise financial terms of the arrangement remain undisclosed, the move signals a major effort by Verizon to stay ahead in the race for ubiquitous mobile coverage.
“The agreement will extend the scope of Verizon’s 850 MHz premium low-band spectrum into areas of the U.S. that would benefit from the ubiquitous reach of space-based broadband technology,” Abel Avellan, founder, chairman and CEO of AST SpaceMobile, said in a statement.
“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,” Srini Kalapala, Verizon’s senior vice president of technology and product development, said in a statement.
This pivotal commercial development arrives just two days after a significant change in Verizon’s own leadership. The company named former PayPal Chief Executive Officer Dan Schulman as its new CEO, replacing Hans Vestberg with immediate effect. Schulman, who has been a valued member of the Verizon board since 2018 and served as its lead independent director, now steers the New York-based firm. Vestberg will continue his association with the company, acting as a special adviser until October 4, 2026, and retaining his seat on the board until the annual general meeting that year.
