Another direct-to-cell satellite firm AST SpaceMobile is in the news after securing significant investments from industry giants AT&T, Google, and Vodafone, totaling $155 million in strategic funding.
The funding, alongside additional financing of up to $206.5 million, is earmarked for supporting the commercial deployment of AST SpaceMobile’s network. The company announced it can also draw up to $51.5 million from the company’s existing senior-secured credit facility.
The investment comprises a mix of equity-linked capital and non-dilutive commercial payments, including $110 million in 10-year subordinated convertible notes, a $20 million revenue commitment from AT&T contingent on the successful launch and operation of the initial five satellites, and a $25 million minimum revenue commitment from Vodafone, subject to a definitive agreement.
In his comments, Chris Sambar, EVP and Head of Network, AT&T, said: “Through our work with AST SpaceMobile, we’ve already proven the possibilities that satellite has to offer in helping connect more people via text, voice, and video. We’re excited to deepen our relationship with this investment as we continue to drive a first-of-its-kind innovation forward and work together to achieve this shared vision of space-based connectivity for consumers, businesses, and first responders all around the globe.”
Vodafone and AT&T have also placed purchase orders for network equipment from AST SpaceMobile to facilitate the planned commercial service, with Google collaborating on product development, testing, and implementation plans for SpaceMobile network connectivity on Android and related devices.
Margherita Della Valle, CEO, Vodafone Group, added: “Vodafone’s investment and collaboration with AST SpaceMobile will help make our mobile connectivity services available everywhere for our customers across Europe and Africa. Customers in remote rural areas, on land or out at sea, will be able to benefit from fast and reliable 5G broadband directly to their existing smartphones without the need for specialist equipment.” Vodafone also recently committed $1.5 billion to a generative AI partnership with Microsoft for Africa and Europe.
Abel Avellan, Executive Chairman and CEO of AST SpaceMobile, said: “Our vision at AST SpaceMobile has always been to chart a course of collaborative innovation and integration with the world’s leading wireless companies, which is why we are so thrilled to be welcoming this new strategic investment from AT&T, Google, and Vodafone.”
“With this strategic investment, we are gaining capital, invaluable expertise, and strategic partnership. This investment comes alongside prior investments by other leaders in the wireless ecosystem, including Rakuten, American Tower, and Bell Canada, all of whom are not only part owners of AST SpaceMobile but also serve as our technology partners and customers”, he noted.
The strategic investment underscores AST SpaceMobile’s commitment to collaborative innovation with leading wireless companies to achieve global space-based connectivity
