AST SpaceMobile (ASTS) said Monday it signed an agreement for long-term access to up to 45 MHz of lower mid-band spectrum in the US for direct-to-device satellite applications.

AST said it will receive spectrum usage rights for over 80 years to up to 40 MHz of L-Band MSS spectrum in the US and Canada held by Ligado under the deal, plus access to an additional 5 MHz in the 1670-1675 MHz Band in the US.

The deal is subject to the entry into definitive documentation, which is expected in H1, the firm said. The transaction is part of Ligado's ongoing restructuring.

Ligado will get about 4.7 million penny warrants convertible into AST class A shares, subject to a 12-month lock-up, the company said, adding that Ligado will get an additional consideration of about $550 million upon deal closing.

The firm said it would also pay about $80 million a year for spectrum usage rights and provide Ligado with net revenue sharing rights.

AST said it could boost the potential of its in-orbit network, expanding subscriber capacity while enabling peak data transmission speeds up to 120 Mbps to smartphones in the US with its 3GPP spectrum strategy and the new access.

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