AST SpaceMobile Inc. (NASDAQ: ASTS) secures global S-Band priority rights through a new agreement with ITU. The Texas-based company aims to create a space-based cellular broadband network for standard mobile phones. The $64.5 million deal includes spectrum rights in specific frequency bands for low-earth orbit use.

Chairman and CEO Abel Avellan highlights the agreement’s potential to deliver mobile broadband directly from space, offering speeds up to 120 Mbps. The deal, signed on August 5, involves upfront and deferred payments based on performance milestones. AST SpaceMobile plans to close the transaction in the second half of 2025, with payment options in stock or cash.

The spectrum acquisition could improve connectivity in underserved areas, leveraging AST’s partnerships with mobile network operators. Recently, the company issued convertible senior notes to raise capital and repurchased debt by issuing new shares of its Class A common stock. ASTS shares were trading lower by 0.57% at $52.27.

Investors can track ASTS through related ETFs like SPDR S&P Aerospace & Defense ETF (NYSE: XAR) and ARK Space Exploration & Innovation ETF (BATS: ARKX). The company’s move to acquire S-Band spectrum aligns with its strategy to enhance global connectivity through space-based technology.

Read more at Yahoo Finance.: AST SpaceMobile Boosts Satellite-To-Phone Network With Key S-Band Spectrum