AST SpaceMobile, which is developing space-based cellular broadband network accessible directly by everyday smartphones, announed a strategic investment from AT&T, Google and Vodafone and aggregate new financing of up to $206.5 million in gross proceeds. In addition to the $155 million strategic investment, the company also plans to draw up to $51.5 million from the company’s existing senior-secured credit facility.
The strategic investment is intended to support the commercial roll-out of AST SpaceMobile’s network and is comprised of a mix of equity-linked capital and non-dilutive commercial payments. The investment includes:
- $110 million of 10-year subordinated convertible notes with 5.50% interest (which may be paid in kind), with a conversion price of $5.75 per share, a 39% premium to the final trading price on January 16, 2024; invested by AT&T, Google and Vodafone
- $20 million revenue commitment from AT&T, predicated on the launch and successful initial operation of the first 5 commercial satellites
- $25 million minimum revenue commitment from Vodafone, subject to a definitive agreement
In addition to the strategic investment, the new investors will increase their collaboration with AST SpaceMobile:
- Vodafone and AT&T have placed purchase orders for network equipment from AST SpaceMobile to support planned commercial service, for an undisclosed amount
- Google and AST SpaceMobile agreed to collaborate on product development, testing and implementation plans for SpaceMobile network connectivity on Android and related devices
In 2023, the AST SpaceMobile and partners AT&T, Vodafone, Rakuten and Nokia achieved multiple historic technical first-evers in space-based cellular communications – including the demonstration of 2G, 4G LTE and 5G calls, and 14 Mbps download speeds per 5 Mhz channels – directly from space to everyday smartphones.
AST SpaceMobile also notes that its beams from upcoming satellites will support capacity of up to 40 Mhz, potentially enabling data transmission speeds of up to 120 Mbps.
Abel Avellan, Chairman and CEO of AST SpaceMobile, said, “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. 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. 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.”
Chris Sambar, Executive Vice President, Head of Network, AT&T, said “Through our work with AST SpaceMobile, we’ve 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.”
- AST SpaceMobile currently operates the largest-ever commercial communications array in low Earth orbit, the BlueWalker 3 satellite.
- On September 10, 2022, BlueWalker 3 was launched on a SpaceX Falcon 9 from Kennedy Space Center Launch Complex 39A.
- BlueWalker 3 boasts a 693-square-foot (64 m2) antenna array and a field of view of over 300,000 square miles on Earth. It maintains low Earth orbit at an altitude between approximately 508 and 527 km (316 and 327 mi).