AST SpaceMobile Nears Court Approval for 45 MHz Spectrum Access in US, Canada

AST SpaceMobile has secured a settlement term sheet with Ligado Networks, Viasat, and Inmarsat that grants the company long-term access to up to 45 MHz of premium lower mid-band spectrum in the U.S. and Canada for direct-to-device satellite broadband services. This agreement, valued at approximately $550 million, includes Inmarsat's support for AST SpaceMobile's regulatory applications with the FCC and Canadian authorities, aiming to operate a Non-Geostationary Satellite Orbit system within the L-Band mid-band spectrum. The transaction, pending court and regulatory approvals expected by June, will enhance AST SpaceMobile's capabilities by combining this spectrum with its existing low Earth orbit satellite network, including next-generation Block 2 BlueBird satellites designed to deliver peak data speeds of up to 120 Mbps. AST SpaceMobile has secured $550 million in institutional financing to fulfill payment commitments, including $535 million to Inmarsat, facilitating the deal's closure. This strategic expansion positions AST SpaceMobile as a leading player in the satellite broadband industry, capable of offering cellular connectivity directly to standard mobile devices, potentially transforming telecom services in underserved areas. Investors are advised to monitor regulatory progress and the company's management of financial obligations as the company scales its network.