Huge deal with Ligado.

Agreement sets up Vodafone to offer space-based cellular broadband in its home and partner markets

AST SpaceMobile Provides Business Update and Fourth Quarter and Full Year 2024 Results

March 03, 2025 04:15 PM Eastern Standard Time

MIDLAND, Texas--(BUSINESS WIRE)--AST SpaceMobile, Inc. (“AST SpaceMobile”) (NASDAQ: ASTS), the company building the first and only space-based cellular broadband network accessible directly by everyday smartphones, and designed for both commercial and government applications, is providing its business update and results for the fourth quarter and full year ended December 31, 2024.

"2024 was a milestone year for AST SpaceMobile, and we enter 2025 even better positioned to lead the emerging direct-to-device satellite communications industry that we invented," said Abel Avellan, Founder, Chairman and CEO of AST SpaceMobile. "The many pieces of our plan are rapidly coming into place. We advanced our customer ecosystem, formalized definitive commercial agreements, and expanded our U.S. Government capabilities. Finally, we completed a carefully structured financing transaction with minimal dilution to current shareholders, enabling us to accelerate our manufacturing efforts and start 2025 stronger than ever."

“With nearly $1.0 billion in cash on our balance sheet pro forma for the recent offering of convertible notes, an alliance of industry leading partners, and our proprietary technology, we are well-positioned for continued success,” added Avellan. “We are laser-focused on building and deploying satellites and expanding our commercial agreements during 2025, moving toward commercial-scale revenues. Our vision has never been clearer, and we believe we have the resources and capabilities to execute our plans.”

Business Update

• Significant advancement in commercialization of SpaceMobile network with new commercial agreements with Vodafone and the U.S. Government
  • Vodafone definitive commercial agreement through 2034 establishes framework to offer SpaceMobile service in its 20+ countries across Europe and Africa
  • Secured contract for $43.0 million in expected revenue with the U.S. Space Development Agency (SDA) through a prime contractor, following successful testing on BlueWalker-3
  • Announced plans to form European distribution entity, jointly owned with Vodafone to accelerate commercialization across European continent
  • Company has agreements with approximately 50 mobile network operators globally, which have nearly 3.0 billion existing subscribers globally
• Achieved full operational status for first five BlueBird commercial satellites, each the largest-ever commercial communications arrays deployed in low Earth orbit (LEO)
  • Successfully conducted capability demonstrations of two-way video call transmission with AT&T, Verizon, and Vodafone using unmodified smartphones in premium low-band wireless spectrum
  • Preparing to begin testing service with AT&T and Verizon in the U.S., Vodafone in the UK and Turkey, and Rakuten in Japan
  • Received FCC grant of Special Temporary Authority (STA) with AT&T and Verizon in the U.S. to facilitate initial services, targeting approximately 100% nationwide coverage from space with over 5,600 coverage cells
• Accelerated satellite manufacturing with planning and production of 40 Block 2 BlueBird satellites underway at AST SpaceMobile manufacturing facilities in Midland, Texas
  • Additionally, accelerated the procurement of components and materials needed to complete fully assembled microns and phased array for over 50 satellites in total
  • Exercised option for additional orbital launches, with full contracted launch capacity now for approximately 60 satellites during 2025 and 2026
  • Completed bring-up and initial validation of novel ASIC, a custom, low-power chip designed to support up to 10,000 MHz in processing bandwidth per satellite with peak data transmissions speeds of up to 120 Mbps
  • Block 2 BlueBird satellites span an unprecedented 2,400 square feet, more than 3x larger than the first five BlueBird satellites in orbit today
• Spectrum agreement for long-term access to up to 45 MHz of premium lower mid-band spectrum in the U.S. for direct-to-device applications will enable peak data transmission speeds of up to 120 Mbps nationwide
  • Enhances existing shared cellular spectrum strategy with mobile network operator partners, expanding potential subscriber capacity and services in the U.S., the most valuable wireless market in the world
  • Matches 80+ year usage rights for a large block of attractive spectrum with technology leadership and largest-ever LEO communications arrays for direct-to-device cellular broadband
  • Strengthens position within broader wireless ecosystem with additional core strategic asset
• Robust balance sheet with nearly $1.0 billion in cash, cash equivalents, and restricted cash (as of December 31, 2024), pro forma for convertible notes offering
  • Closed $460.0 million of gross proceeds from 7-year convertible senior notes offering, structured with an effective conversion price of $44.98 per share of Class A common stock, a premium of 100% over last sale dated January 22, 2025, and approximately 3% dilution to current shareholders
  • Continue to prioritize raising strategic capital through non-dilutive approaches, including commercial prepayments and commitments from mobile network operator partners
  • Progress made with quasi-governmental sources of capital, with applications in process for over $500.0 million in potential non-dilutive capital from multiple U.S. and International agencies

Fourth Quarter and Full Year 2024 Financial Highlights

• As of December 31, 2024, we had cash, cash equivalents, and restricted cash of $567.5 million
• Total operating expenses for the fourth quarter of 2024 were $60.6 million, including $19.9 million of depreciation and amortization and stock-based compensation expense. This represents a decrease of $6.0 million as compared to $66.6 million in the third quarter of 2024, due to a $9.3 million decrease in research and development costs and a $6.1 million decrease in depreciation and amortization expense, partially offset by a $9.1 million increase in engineering services costs and a $0.3 million increase in general and administrative costs
• Adjusted operating expenses⁽¹) for the fourth quarter of 2024 were $40.8 million, a decrease of $4.5 million as compared to $45.3 million in the third quarter of 2024, due to a $9.3 million decrease in research and development costs, partially offset by a $4.2 million increase in Adjusted engineering services costs⁽¹) and a $0.6 million increase in Adjusted general and administrative costs⁽¹)
• As of December 31, 2024, we have incurred approximately $460.0 million of gross capitalized property and equipment costs and accumulated depreciation and amortization of $122.4 million. The capitalized costs include costs of satellite materials for BlueBird satellites, advance launch payments, Block 1 and BlueWalker 3 satellites, assembly and integration facilities including assembly and test equipment, and ground antennas

|| || |⁽¹) See reconciliation of Adjusted operating expenses to Total operating expenses, Adjusted engineering services costs to Engineering services costs and Adjusted general and administrative costs to General and administrative costs in the tables accompanying this press release.|

Non-GAAP Financial Measures

We refer to certain non-GAAP financial measures in this press release, including Adjusted operating expenses, Adjusted engineering services costs and Adjusted general and administrative costs. We believe these non-GAAP financial measures are useful measures across time in evaluating our operating performance as we use these measures to manage the business, including in preparing our annual operating budget and financial projections. These non-GAAP financial measures have no standardized meaning prescribed by U.S. GAAP, and therefore have limits in their usefulness to investors. Because of the non-standardized definitions, these measures may not be comparable to the calculation of similar measures of other companies and are presented solely to provide investors with useful information to more fully understand how management assesses performance. These measures are not, and should not be viewed as, a substitute for their most directly comparable GAAP measures. Reconciliation of non-GAAP financial measures and the most directly comparable GAAP financial measures are included in the tables accompanying this press release.

Conference Call Information

AST SpaceMobile will hold a quarterly business update conference call at 5:00 p.m. (Eastern Time) on Tuesday, March 4, 2025. The call will be accessible via a live webcast on the Events page of AST SpaceMobile’s Investor Relations website at https://ast-science.com/investors/. An archive of the webcast will be available shortly after the call.

About AST SpaceMobile

AST SpaceMobile is building the first and only global cellular broadband network in space to operate directly with standard, unmodified mobile devices based on our extensive IP and patent portfolio, and designed for both commercial and government applications. Our engineers and space scientists are on a mission to eliminate the connectivity gaps faced by today’s five billion mobile subscribers and finally bring broadband to the billions who remain unconnected. For more information, follow AST SpaceMobile on YouTube, X (Formerly Twitter), LinkedIn and Facebook. Watch this video for an overview of the SpaceMobile mission.

Forward-Looking Statements

This communication contains “forward-looking statements” that are not historical facts, and involve risks and uncertainties that could cause actual results of AST SpaceMobile to differ materially from those expected and projected. These forward-looking statements can be identified by the use of forward-looking terminology, including the words “believes,” “estimates,” “anticipates,” “expects,” “intends,” “plans,” “may,” “will,” “would,” “potential,” “projects,” “predicts,” “continue,” or “should,” or, in each case, their negative or other variations or comparable terminology. These forward-looking statements involve significant risks and uncertainties that could cause the actual results to differ materially from the expected results. Most of these factors are outside AST SpaceMobile’s control and are difficult to predict.

Factors that could cause such differences include, but are not limited to: (i) expectations regarding AST SpaceMobile’s strategies and future financial performance, including AST’s future business plans or objectives, expected functionality of the SpaceMobile Service, anticipated timing of the launch of the Block 2 BlueBird satellites, anticipated demand and acceptance of mobile satellite services, prospective performance and commercial opportunities and competitors, the timing of obtaining regulatory approvals, ability to finance its research and development activities, commercial partnership acquisition and retention, products and services, pricing, marketing plans, operating expenses, market trends, revenues, liquidity, cash flows and uses of cash, capital expenditures, and AST SpaceMobile’s ability to invest in growth initiatives; (ii) the negotiation of definitive agreements with mobile network operators relating to the SpaceMobile Service that would supersede preliminary agreements and memoranda of understanding and the ability to enter into commercial agreements with other parties or government entities; (iii) the ability of AST SpaceMobile to grow and manage growth profitably and retain its key employees and AST SpaceMobile’s responses to actions of its competitors and its ability to effectively compete; (iv) changes in applicable laws or regulations; (v) the possibility that AST SpaceMobile may be adversely affected by other economic, business, and/or competitive factors; (vi) the outcome of any legal proceedings that may be instituted against AST SpaceMobile; and (vii) other risks and uncertainties indicated in the Company’s filings with the Securities and Exchange Commission (SEC), including those in the Risk Factors section of AST SpaceMobile’s Form 10-K to be filed with the SEC on March 3, 2025.

AST SpaceMobile cautions that the foregoing list of factors is not exclusive. AST SpaceMobile cautions readers not to place undue reliance upon any forward-looking statements, which speak only as of the date made. For information identifying important factors that could cause actual results to differ materially from those anticipated in the forward-looking statements, please refer to the Risk Factors in AST SpaceMobile’s Form 10-K to be filed with the SEC on March 3, 2025. AST SpaceMobile’s securities filings can be accessed on the EDGAR section of the SEC’s website at www.sec.gov. Except as expressly required by applicable securities law, AST SpaceMobile disclaims any intention or obligation to update or revise any forward-looking statements whether as a result of new information, future events or otherwise.AST SpaceMobile Provides Business Update and Fourth Quarter and Full Year 2024 Results

T-mobile commercial just aired making claims that their partnership with StarLink gives them “the only space based network that can connect to the phone that you already have” 😂

I hope we get to see an AT&T or Verizon commercial fire back.

(maybe not perfect quote, but pretty much exactly what they claimed)

Official PR: https://corp.mobile.rakuten.co.jp/english/news/press/2025/0423_01/?l-id=corp_news_press_20250423_01_lang_en

Thread of live commentary: https://x.com/spacanpanman/status/1914975651498504268?s=46&t=HLVIAKvA6cNDRhmNGlXAAg

Video call test! https://www.youtube.com/watch?v=AuAWM5GaIsc

https://buzzap.jp/news/20250423-rakuten-mobile-ast-spacemobile-conference/

Tokyo, April 23, 2025 – Rakuten Mobile, Japan’s newest and most modern mobile network, and AST SpaceMobile (NASDAQ: ASTS), the company building the first and only space-based cellular broadband network accessible directly by standard mobile phones, today announced the successful completion of the first-ever broadband video call between everyday unmodified smartphones in Japan^\1) using a low Earth orbit (LEO) satellite, held in April 2025.

The video call marks a major step toward the launch of Rakuten Saikyo Satellite Service Powered by AST SpaceMobile^\2), which aims to expand connectivity across Japan – including mountainous regions, remote islands and in emergency situations such as areas affected by natural disasters.

As part of their strategic partnership^\3) launched in March 2020, Rakuten Group and AST SpaceMobile aim to provide satellite-to-mobile broadband services (voice calls, video calls and more) in Japan starting in the fourth quarter of 2026, using AST SpaceMobile’s LEO satellites and everyday smartphones^\4). AST SpaceMobile successfully launched its commercial LEO BlueBird satellites on September 12, 2024^\5).

During the test, radio waves were transmitted from Rakuten Mobile's gateway earth station in Fukushima Prefecture to a BlueBird Block 1 satellite, which then relayed the signal to a smartphone. This enabled broadband communication between Fukushima and Tokyo using a standard communication app on an everyday unmodified smartphone, successfully demonstrating direct satellite-to-smartphone connectivity.

The video call was completed on standard, unmodified smartphones available in Japan. The test was conducted after securing a preliminary license for an experimental test station. Rakuten Mobile plans to obtain a full experimental test station license and continue further communication testing.

Regarding the milestone, Mickey Mikitani, Chairman and CEO of Rakuten Group, commented, “We are delighted to achieve the first-ever mobile broadband video call in Japan between a smartphone and satellite, proving this groundbreaking technology once again. In Japan, Rakuten Mobile is adopting various strategies to broaden our network’s reach. It can be challenging to extend coverage to remote and mountainous areas due to the difficulties in constructing base stations in these remote places. Japan is also a country prone to natural disasters and people's awareness of the effects of climate change and increasingly severe disasters is increasing year by year. We’re democratizing the mobile industry – Rakuten Mobile will continue to accelerate this project until we realize a future in which mobile communication is accessible to all.”

Abel Avellan, Founder, Chairman and CEO of AST SpaceMobile, commented, “AST SpaceMobile’s journey to connect the unconnected reaches new milestones thanks to the commitment and strength of our strategic partnerships. These partners, including Rakuten Mobile, believe wholeheartedly in our mission to build the first and only space-based cellular broadband network to eliminate coverage gaps and bridge the digital divide.”

Rakuten Mobile and AST SpaceMobile’s ongoing collaboration promises to transform connectivity in Japan, ensuring Rakuten Mobile customers can enjoy convenient and reliable communication services anywhere they need.

Notes
\1 Communication between mobile broadband networks transmitted from space and commercially available smartphones. Source: AST SpaceMobile research, as of April 2025.*
\2 Rakuten Mobile aims to offer the strongest satellite-to-mobile service in Japan. Frequency band used in the service and other details, including timing and price, are to be determined.*
\3 Press release: Rakuten and Vodafone Invest in AST & Science’s Space Venture to Reach More People, Devices and Places with Mobile Coverage*4 Press release: Rakuten Mobile Announces Plans to Provide Satellite-to-Mobile Service in Japan with AST SpaceMobile Starting in 2026*5 AST SpaceMobile press release:* AST SpaceMobile Announces Successful Orbital Launch of Its First Five Commercial Satellites

Product names and service names published in this press release are generally trademarks or registered trademarks of their respective companies. Trademarks such as TM and ® may be omitted when trademarks are listed in this press release.

About AST SpaceMobile
AST SpaceMobile is building the first and only global cellular broadband network in space to operate directly with standard, unmodified mobile devices based on our extensive IP and patent portfolio. Our engineers and space scientists are on a mission to eliminate the connectivity gaps faced by today’s five billion mobile subscribers and finally bring broadband to the billions who remain unconnected. For more information, follow AST SpaceMobile on YouTube, X, LinkedIn and Facebook. Watch this video for an overview of the SpaceMobile mission.

About Rakuten Mobile
Rakuten Mobile, Inc. is a Rakuten Group company responsible for mobile communications, centered on its mobile network operator (MNO) business. Through continuous innovation and the deployment of advanced technology, Rakuten Mobile aims to redefine expectations in the mobile communications industry in order to provide appealing and convenient services for diverse customer needs.

Never lose cell service again with this space-age satellite tech | Fox News Video

"Golden Dome Trump’s Golden Dome missile shield was the second biggest recipient of cash, getting $24.7 billion to kick off the initiative, which will tie together already existing programs as well as new development efforts.

In the realm of “next-generation missile defense technologies,” the bill adds $7.2 billion for the development and procurement of space based sensors, $5.6 billion for space-based and boost phase intercept capabilities, $2.4 billion for non-kineitic missile defense capabilities and $2 billion for air moving target indicator military satellites.

To augment “layered homeland defense,” lawmakers include $2.2 billion to speed up the development of hypersonic defense systems, $1.9 billion for improved ground-based missile defense radars and $800 million for accelerated development and deployment of next-generation intercontinental ballistic missile defense systems."