DALLAS & MIDLAND, Texas – AT&T and AST SpaceMobile have announced a definitive commercial agreement to create a space-based broadband network that will directly connect to everyday cell phones. This partnership, which extends until 2030, marks a significant advancement in efforts to enhance connectivity across the United States.
The collaboration between the two companies dates back to 2018, and the newly solidified agreement follows a series of successful demonstrations, including the first space-based voice call, text, and video call between standard smartphones achieved in 2023.
This summer, AST SpaceMobile is set to deliver its first five commercial satellites to Cape Canaveral for launch into low Earth orbit. These satellites are expected to provide two-way connectivity and address coverage gaps in remote and wilderness areas, including national parks, rural highways, and other hard-to-reach locations across the continental U.S.
AT&T's Head of Network, Chris Sambar, is poised to join AST SpaceMobile's board of directors, further cementing the strategic partnership. AT&T's Chief Operating Officer, Jeff McElfresh, highlighted the agreement as a step forward in utilizing satellite technologies to extend services to areas previously without connectivity options.
AST SpaceMobile's Founder, Chairman, and CEO Abel Avellan expressed excitement about the collaboration, aiming to transform the way people connect and access information with seamless, reliable service.
The initiative is part of AT&T's commitment to providing expansive connectivity on America's largest wireless network, with the anticipation that "dead zones" will become a relic of the past. The upcoming satellite solution is designed to complement and integrate with AT&T's existing mobile network.
This news is based on a press release statement, and it represents a significant leap towards improved national and potentially global connectivity. The companies have not disclosed financial terms of the agreement.
InvestingPro Insights
AST SpaceMobile, the company working with AT&T to revolutionize broadband connectivity via space-based networks, presents a mix of financial data points that investors might find intriguing. With a market capitalization of approximately $611.94 million, the company is navigating through a transformative phase in its business.
InvestingPro data reveals a challenging financial landscape for AST SpaceMobile, with an adjusted P/E ratio for the last twelve months as of Q4 2023 standing at -3.77, reflecting investor sentiment about the company's earnings prospects. The Price / Book ratio during the same period is 6.18, suggesting a premium market valuation relative to the company's book value. Moreover, the firm has experienced a significant decline in its EBITDA, with a contraction of 19.03% over the last twelve months as of Q4 2023.
However, the company's stock has shown a robust return over the last month, with a 20.67% price total return, indicating a potential rebound or investor optimism about its future. This aligns with one of the InvestingPro Tips, which highlights a strong return over the same period. On the other hand, an InvestingPro Tip points out that analysts are not expecting AST SpaceMobile to be profitable this year, which could temper some of the recent positive price momentum.
For investors keen on digging deeper into AST SpaceMobile's financials and future prospects, InvestingPro offers additional insights. There are 14 more InvestingPro Tips available for AST SpaceMobile, which could help in making a more informed investment decision. Interested readers can take advantage of an exclusive offer by using the coupon code PRONEWS24 to get an additional 10% off a yearly or biyearly Pro and Pro+ subscription.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.