The company said the capital injection will help it accelerate its mission to close the global connectivity gap by bringing 5G broadband service from space to billions of people worldwide.
AST SpaceMobile has set itself the lofty ambition of being the first and only space-based cellular broadband network accessible directly by everyday smartphones.
In addition to the $155 million strategic investment, the company also plans to draw up to $51.5 million from its existing senior-secured credit facility, for a total new financing of up to $206.5 million in gross proceeds.
AST SpaceMobile claims to have invented the space-based direct-to-device market, and says its patented design facilitates broadband connectivity directly to standard, unmodified cellular devices.
Vodafone was an existing investor in the company, and alongside AT&T, Rakuten and Nokia helped AST SpaceMobile make the first-ever 5G connection for voice and data between an unmodified smartphone.
“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,” Abel Avellan, chairman and CEO of AST SpaceMobile, said.
Alongside Vodafone and the two new investors, Rakuten, American Tower, and Bell Canada have also backed the company as part owners, technology partners and customers.
“Each new partnership signifies that market leaders worldwide have tremendous confidence in our vision and ability to ensure that the future of cellular broadband is borderless," Avellan said.
AT&T EVP and head of network, Chris Sambar said that through AT&T’s work with AST SpaceMobile, the two companies had 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,” Sambar said.
In addition to the strategic investment, Vodafone and AT&T have placed purchase orders for network equipment from AST SpaceMobile to support planned commercial service.
“Vodafone’s investment and collaboration with AST SpaceMobile will help make our mobile connectivity services available everywhere for our customers across Europe and Africa,” said Margherita Della Valle, Vodafone Group chief executive.
“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,” she said.
In addition its strategic investment, Google agreed to collaborate on product development, testing and implementation plans for AST SpaceMobile’s network connectivity on Android and related devices.
