AT&T ($T) and AST SpaceMobile ($ASTS) Announce Space-Based Broadband Deal

May 15, 2024, 09:40 PM

AT&T has entered into a commercial agreement with satellite provider AST SpaceMobile to provide a space-based broadband network directly to cell phones. This move positions AT&T ($T) as a competitor to Elon Musk's SpaceX, which previously partnered with T-Mobile for a similar service. The agreement, which runs through 2030, aims to deliver wireless service from space, challenging existing terrestrial and satellite broadband providers. Chris Sambar, currently head of AT&T's network, is also involved in the initiative. AST SpaceMobile's stock ($ASTS) saw a 30.5% increase in pre-market trading following the announcement.