AST SpaceMobile Inc. ASTS is broadening its satellite spectrum portfolio through a new agreement to obtain global S-Band priority rights governed by the International Telecommunication Union (ITU).

The Texas-based firm is constructing the first space-based cellular broadband network designed to connect directly with standard mobile phones.

Under the deal, AST will acquire Mobile Satellite Services (MSS) spectrum rights in the 1980–2010 MHz and 2170–2200 MHz frequency bands for use in low-earth orbit. The transaction aligns with the company’s 3GPP global spectrum framework and its L-band plans in North America.

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Abel Avellan, Chairman and CEO, said the S-Band integration would strengthen the company’s mission to deliver mobile broadband directly from space. “With these new spectrum priority rights, we will be in a position to bring services in S-Band to targeted markets around the world,” he said, highlighting expected peak speeds of up to 120 Mbps.

The agreement, signed August 5, is valued at $64.5 million. It includes $26 million due at closing and $38.5 million in deferred payments, partly based on performance milestones. The deal is anticipated to close in the second half of 2025, subject to customary conditions. Payment may be made in either stock or cash at AST’s discretion.

The spectrum acquisition could enhance connectivity in underserved regions through AST’s existing partnerships with mobile network operators.

Recently, the company issued new convertible senior notes to raise capital, while also repurchasing some of its existing debt by issuing new shares of its Class A common stock.

Related ETFs: SPDR S&P Aerospace & Defense ETF XAR, ARK Space Exploration & Innovation ETF ARKX

Price Action: At last check Wednesday, ASTS shares were trading lower by 0.57% to $52.27.

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