The new agreement for a commercial direct-to-cellular service is the latest step in the two companies’ relationship
AT&T has officially inked an agreement with satellite direct-to-cellular company AST SpaceMobile, which extends through 2030, for a commercial direct-to-device service provided to unmodified cellular phones.
As part of the agreement, AT&T Head of Network Chris Sambar will be appointed to AST’s board of directors. The two partners called the agreement “not just one small step, but one giant leap towards enhanced connectivity for consumers and businesses across the country” in a joint release.
AT&T also said that AST is planning to deliver its first five commercial satellites to Cape Canaveral for launch into low Earth orbit (LEO), which will enable the commercial service.
AT&T and AST have already been conducting joint testing of various services, including a recent test of streaming video. The carrier said that it will continue to work directly with AST on developing and testing the technology “to help make continental U.S. satellite coverage possible.
“Space-based direct-to-mobile technology is designed to provide customers connectivity by complementing and integrating with our existing mobile network,” said Jeff McElfresh, COO of AT&T. “This agreement is the next step in our industry leadership to use emerging satellite technologies to provide services to consumers and in locations where connectivity was not previously feasible.”
Abel Avellan, AST SpaceMobile’s founder, c hairman, and CEO, said: “We are thrilled to solidify our collaboration through this landmark agreement. We aim to bring seamless, reliable service to consumers and businesses across the continental U.S., transforming the way people connect and access information.”
In January, AST said that it was primed for commercial service launch with new funding from AT&T, Google,Vodafone and a line of credit. Those investments encompassed $20 million in revenue commitments from AT&T that were predicated on the successful launch and operation of AST SpaceMobile’s first five commercial satellites, and a minimum $25 million in revenue commitments from Vodafone. Both carriers have placed purchase orders in undisclosed amounts for AST SpaceMobile network equipment that will support planned commercial services.
Meanwhile, however, AST’s five Bluebird satellites of its anticipated constellation have been repeatedly delayed due to supplier issues. The company had first planned to launch them before the end of 2023, then expected to launch in the first or second quarter of 2024; Avellan has said that the satellites are now expected to be transported to the launch site between July and August 2024.
AST SpaceMobile said that its BlueWalker 3 satellite currently has the largest-ever commercial communications array in low Earth orbit. It also has satellites in the works with beams designed to support capacity of up to 40 megahertz, which AST SpaceMobile says will could potentially enable data speeds of up to 120 Mbps.