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AT&T, Verizon back $1.2B broadband bet in AST SpaceMobile

By Aditya Raghunath TheStreet

Updated May 20, 2026 4:48 PM

Think about the last time your phone lost a signal. Maybe it was on a road trip through a rural stretch of land, or mid-hike somewhere off the grid.

Now imagine that never happening again, anywhere on the planet, on the phone you currently own.

That is precisely what AST SpaceMobile is building. And two of America's biggest wireless carriers just put serious money behind the idea.

AT&T and Verizon are among nearly 60 global mobile network operators that have collectively committed more than $1.2 billion in contracted revenue to AST SpaceMobile's growing satellite broadband network.

The list of partners includes Vodafone, Rakuten, Bell Canada, Telus, and Saudi Telecom Company, which are also in the mix, covering a combined subscriber base of over three billion people worldwide.

What AST SpaceMobile does

Most people have never heard of AST SpaceMobile. But the technology it's building could change how every smartphone on the planet connects to the internet.

The core idea is straightforward. Instead of relying solely on ground-based cell towers, AST SpaceMobile is deploying satellites in low Earth orbit that can beam cellular broadband signals directly to any standard smartphone.

The company describes it as the first and only space-based cellular broadband network specifically designed for direct-to-device connectivity. And it has roughly 3,900 patents and patent-pending claims protecting the technology.

To understand why AT&T (T) and Verizon (VZ) are paying attention, consider this.

There are nearly six billion mobile phones in use around the world today.
Billions of people still lack reliable cellular broadband coverage.
That is a massive addressable market, and AST SpaceMobile is positioning itself as the only company with the technology to capture it.

The $1.2 billion vote of confidence in AST SpaceMobile, explained

The $1.2 billion figure represents contracted revenue commitments from AST SpaceMobile's commercial partners across its global network of nearly 60 carriers.

These are binding commercial agreements tied to gateway equipment deliveries, network integration work, and future service revenue as the constellation grows.

In Q1 of 2026, AST SpaceMobile generated $14.7 million in revenue, driven by commercial gateway deliveries to mobile network operator partners and milestone achievements under U.S. government contracts.

AST SpaceMobile President Scott Wisniewski also addressed the U.S. government opportunity.

"The backdrop for U.S. government contracts continues to be really strong," Wisniewski stated, pointing to a proposed Space Force budget exceeding $70 billion.

The company reiterated full-year 2026 revenue guidance of $150 million to $200 million.

Management expects revenue to approach $1 billion in 2027, fueled by the activation of commercial broadband service across key markets, including the United States, Europe, Japan, and Saudi Arabia.

To achieve its revenue targets, the company aims to put approximately 45 satellites in orbit by year-end 2026.

A Falcon 9 launch carrying Blue Origin's 8, 9, and 10 is scheduled for mid-June.

AST SpaceMobile is set to launch 45 satellites by the end of 2026.

Yuichiro Chino/ Getty Images

AST SpaceMobile's download speed test results turn heads

AST SpaceMobile confirmed it had recorded a peak cellular broadband download speed of 98.9 Mbps over international waters, beamed directly to an off-the-shelf smartphone from its Block 1 satellites currently in orbit.

That is faster than many home internet connections. And the phone required zero modifications.

SpaceMobile CEO Abel Avellan told investors that the company's next-generation Block 2 BlueBird satellites, which feature the largest phased arrays ever deployed in low Earth orbit, are expected to double that speed to around 200 Mbps.

The performance jump comes from a combination of the company's custom application-specific integrated circuit chip, which increases processing bandwidth tenfold per satellite, and new artificial intelligence-driven spectrum management tools that dynamically allocate power and bandwidth based on real-time user location and traffic patterns.

The risks investors need to watch for AST SpaceMobile

The opportunity is real, but so are the challenges.

AST SpaceMobile recently lost a satellite after its BlueBird 7 mission experienced an upper-stage anomaly aboard a Blue Origin New Glenn rocket.
Management acknowledged the setback directly but pointed to its multi-launch-provider strategy, which also includes SpaceX, as a built-in buffer against exactly this kind of disruption.
Manufacturing is another pressure point. Building six fully assembled satellites per month requires over 1,000 employees, significant investment in robotics, and flawless execution across more than 500,000 square feet of production space.

Avellan called it "very difficult" but said the company is now hitting its cadence targets.

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Revenue will also be uneven quarter-to-quarter in the near term. Chief Financial Officer Andy Johnson cautioned investors to evaluate the business on an annual basis, given the milestone-driven nature of government contracts and the timing of hardware deliveries.

The company ended the first quarter with approximately $3.5 billion in cash, which management says is sufficient to fund a constellation of over 100 satellites in 2026 without additional convertible debt.

With AT&T and Verizon already locked in, and nearly 60 carriers worldwide aligned behind the same bet, AST SpaceMobile is no longer just a moonshot. It is starting to look like infrastructure.

Is ASTS stock undervalued?

Analysts tracking ASTS stock forecast revenue to increase from $70.92 million in 2025 to $3.49 billion in 2030. Over the next two years, it is forecast to report a free cash outflow of $2.3 billion before turning profitable by the end of 2028.

Moreover, Wall Street estimates that AST SpaceMobile will report free cash flow of roughly $1 billion in 2030. If the stock is priced at 50x forward FCF, it could double within the next 40 months.

The space tech stock is well-capitalized and enjoys a first-mover advantage with a visible revenue stream.

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This story was originally published May 20, 2026 at 4:17 PM.