Satellite Service Comes to the U.S. Market
Verizon is joining forces with AST SpaceMobile to bring space-based cellular broadband directly to smartphones — no special hardware or satellite phones required. The new agreement will allow Verizon customers to connect via satellite “when needed,” expanding the carrier’s coverage across the continental United States.
AST SpaceMobile, which describes itself as building the world’s first space-based cellular network for standard mobile devices, said the service is expected to begin rolling out in 2026.
The partnership represents a continuation of last year’s collaboration between the two companies, which focused on proof-of-concept tests.
How It Works
- Verizon will extend its 850 MHz premium low-band spectrum into remote or underserved areas using AST’s satellite infrastructure.
- The satellites will function as space-based cell towers, providing service directly to regular smartphones without the need for ground-based relay networks.
- AST says its technology will serve both commercial and government clients, broadening the potential market.
The company has already conducted successful trials demonstrating the ability to deliver broadband directly from orbit, a major technical milestone in satellite communications.
Market Reaction
Investors responded strongly to the news. AST SpaceMobile shares jumped 12% on Wednesday, adding to an already massive 250% surge year-to-date. The stock has been one of the most volatile — and closely watched — space plays of 2025.
Verizon (VZ) shares edged slightly lower, though analysts say the partnership could strengthen its long-term position in rural connectivity and network redundancy.
While financial terms weren’t disclosed, analysts see the deal as a significant step toward integrating satellite infrastructure into mainstream telecom networks — a trend also being pursued by players like SpaceX’s Starlink and Amazon’s Project Kuiper.
WSA Take
Verizon’s new deal with AST SpaceMobile underscores a critical shift in telecom strategy — moving from land-based infrastructure toward hybrid networks that blend terrestrial and orbital connectivity.
This development positions AST as one of the frontrunners in a multi-trillion-dollar connectivity race, where the lines between telecom and aerospace are rapidly blurring.
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