AST SpaceMobile, Inc. (ASTS) experienced a significant surge of 14.04% in its stock price during pre-market trading on Monday. This soaring movement can be attributed to the company's announcement of a definitive long-term commercial agreement with Vodafone Group Plc (VOD) through 2034.
The agreement establishes a framework for Vodafone to offer space-based cellular broadband connectivity in its home markets and partner markets, utilizing AST SpaceMobile's upcoming satellite network. Vodafone, a leading European and African telecommunications company, has been a key technology partner and investor in AST SpaceMobile since 2018, collaborating on the development of direct-to-device connectivity with everyday smartphones.
As part of the deal, Vodafone has placed an order for its first BlueBird gateway, a crucial milestone in the deployment of AST SpaceMobile's global network infrastructure. The next-generation Block 2 BlueBirds satellites, with their large communications arrays, are designed to deliver high-bandwidth capacity and peak data transmission speeds of up to 120 Mbps, supporting voice, data, and video applications. This advancement is expected to significantly enhance global broadband connectivity, particularly in areas currently lacking traditional cellular coverage.
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