Verizon Partners With AST SpaceMobile For Satellite-Based Cellular Service
AST SpaceMobile announced on Wednesday, October 8, 2025 that it has entered into an agreement with Verizon to provide satellite-based cellular service beginning in 2026. According to AST, the initiative aims to deliver direct-to-device (D2D) cellular connectivity via satellite for Verizon customers “when needed,” representing an expansion of the collaboration established by the two companies last year.
Starting next year, Verizon and AST SpaceMobile will integrate Verizon’s terrestrial infrastructure and 850MHz spectrum assets with AST SpaceMobile’s space-based cellular network in low Earth orbit, facilitating uninterrupted connectivity for customers regardless of location, from remote hiking trails to urban centers.
Shares of AST rose by approximately 12% in midday trading, following a more than 250% increase in 2025 prior to the announcement. In contrast, Verizon’s shares experienced a slight decline.
The arrangement builds upon a strategic partnership established in May 2024, when Verizon committed $100 million to AST SpaceMobile. Shortly before this announcement, AST SpaceMobile extended its D2D agreement with AT&T by six years. In the competitive landscape, T-Mobile US has secured a similar D2D agreement with SpaceX, led by Elon Musk.
Abel Avellan, CEO of AST SpaceMobile, stated that the definitive commercial agreement with Verizon is aimed at delivering space-based coverage across the continental United States. He noted, “This agreement will extend the reach of Verizon’s 850MHz premium-low band into areas of the US positioned to benefit from the ubiquitous reach of space-based broadband technology.”
According to AST SpaceMobile, the agreement was achieved after meeting key testing milestones, such as successfully completing a Voice over LTE call between smartphones on the Verizon network, one located in Texas and the other in New Jersey, via an AST SpaceMobile satellite.
Srini Kapala, Senior Vice President of Technology and Product Development at Verizon, remarked that the partnership is creating “a new paradigm of connectivity that will unlock the full potential of the digital age.”
That 850MHz premium low band access from Verizon is huge for ASTS's approach. The fact that they already completed a successful VoLTE call between Texas and New Jersey shows this isn't vaporware anymore. The timing of this announcement with the AT&T extenstion and right before the next BlueBird launches feels very deliberate. Really curious how the competative dynamics play out versus the T-Mobile/SpaceX partnership since SpaceX obviously has massive launch cost advantages. But ASTS has something working right now with unmodified phones which is a real differentiator. That 250% stock run this year definitly has some frothy vibes though, need to see the actual service delivery next year.