AST SpaceMobile has secured a funding of $155m from new investors AT&T and Google, along with existing backer Vodafone.
The $155m investment is complemented by the US-based AST SpaceMobile’s plan draw of up to $51.5m from its existing senior secured credit facility.
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AT&T, Google, and Vodafone’s investment includes $110m in ten year subordinated convertible notes at 5.5% interest, with a conversion price of $5.75 per share
In addition, AT&T and Vodafone have made $20m and $25m revenue commitment, respectively, subject to certain conditions such as launch and operations of commercial satellites.
AST SpaceMobile plans to use the proceeds to accelerate the commercial launch of its space-based communication technology.
The investment is not just financial; it also strengthens the commercial ties between the new investors and AST SpaceMobile.
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By GlobalDataVodafone and AT&T have placed orders for network equipment to support the upcoming commercial services.
Furthermore, Google has entered into a collaboration with AST SpaceMobile for product development, testing, and network connectivity plans on Android devices.
AST SpaceMobile operates the BlueWalker 3 satellite, a commercial communications array in low Earth orbit.
The company’s patented technology is said to enable direct broadband connectivity to standard cellular devices.
The company said that in 2023, in partnership with industry leaders such as AT&T, Vodafone, Rakuten, and Nokia, it achieved several technical milestones in space-based cellular communications.
Those included 2G, 4G LTE, and 5G calls, as well as download speeds of up to 14 Mbps per 5 Mhz channels directly to smartphones.
AST SpaceMobile chairman and CEO Abel Avellan said: “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.”
AT&T executive vice president, head of network Chris Sambar said: “Through our work with AST SpaceMobile, we have already proven the possibilities that satellite has to offer in helping connect more people via text, voice and video. We are 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.”
