(Credit: AST SpaceMobile)
AST SpaceMobile, a rival to SpaceX's cellular Starlink business, has reached a deal to access its own slice of radio spectrum to power satellite communications for phones.
AST SpaceMobile secured the radio spectrum from Ligado Networks, which is also working on cellular satellite services with partners such as Viasat and Skylo. But on Monday, Ligado filed for bankruptcy and entered into a spectrum deal with AST for about $113 million in stock.
In return, AST gains the spectrum rights to a 45MHz block of Ligado’s L-band spectrum in the US and Canadian markets for 80+ years. The company is hailing the announcement as a win since it promises to bolster AST’s ability to beam satellite data to phones through the additional radio bands.
It also means AST can offer its cellular satellite services independently, without always relying on its carrier partners. In the US, AST has reached deals with AT&T and Verizon to one day beam satellite connectivity to customer phones, but through their own licensed radio spectrum.
AST didn’t go into details, but it expects the Ligado deal to help it increase its capacity “while enabling peak data transmission speeds up to 120Mbps to everyday smartphones everywhere in the continental United States.”
On the downside, AST may need to redesign its BlueBird satellites to harness the L-band spectrum, according to satellite industry analyst Tim Farrar, who added that older phones typically don’t support L-band reception.
AST launched its first batch of BlueBird satellites into Earth’s orbit in September. But the company still needs to launch dozens of additional satellites before it can begin offering full coverage to US customers. In addition, AST still needs to receive regulatory approval to both test and commercially operate such services in the US.
In the meantime, the company’s deal with Ligado is expected to close during the first half of 2025. AST also notes Ligado could receive $550 million from the deal, depending on certain closing conditions. In addition, AST SpaceMobile would pay about $80 million per year for spectrum usage rights and “provide Ligado with long-term net revenue sharing rights.”