AST SpaceMobile Secures Long-Term Access to 45 MHz of Premium Mid-Band Spectrum for Direct-to-Device Satellite Services
AST SpaceMobile, Inc. (NASDAQ: ASTS), the pioneer in building the world’s first space-based cellular broadband network accessible directly by everyday smartphones, has announced a significant milestone with the signing of a Settlement Term Sheet. This agreement, involving key industry players such as Ligado Networks LLC, Viasat, Inc., and Inmarsat Global Limited, paves the way for AST SpaceMobile to gain long-term access to up to 45 MHz of premium lower mid-band spectrum in North America. This development positions AST SpaceMobile to deliver on its ambitious goal of achieving peak data transmission speeds of up to 120 Mbps through its innovative direct-to-device satellite services.
Unlocking High-Quality Nationwide Spectrum
The Term Sheet outlines a transformative arrangement that will grant AST SpaceMobile long-term spectrum usage rights for over 80 years, enabling access to up to 40 MHz of L-Band Mobile Satellite Service (MSS) spectrum held by Ligado in the United States and Canada. Additionally, the agreement includes access to an extra 5 MHz in the 1670-1675 MHz Band in the U.S. This represents the largest available block of high-quality nationwide spectrum, empowering AST SpaceMobile to enhance its network capabilities and deliver superior connectivity.
As part of the agreement, Inmarsat will provide affirmative support for AST SpaceMobile’s planned regulatory applications with the Federal Communications Commission (FCC) in the U.S. and ISED in Canada. These filings seek approval to operate a Non-Geostationary Orbit (NGSO) satellite system within the L-Band mid-band spectrum across North America. The deal also resolves certain litigation matters between Ligado and Inmarsat, further solidifying the partnership.
A Strategic Boost to AST SpaceMobile’s Network
This spectrum access complements AST SpaceMobile’s existing infrastructure, which includes the largest-ever commercial communication arrays deployed in low Earth orbit (LEO). Each of the company’s current BlueBird satellites spans approximately 700 square feet, providing non-continuous cellular broadband service across the U.S. and select global markets. With plans for nationwide coverage using over 5,600 coverage cells in the U.S., these satellites are designed to offer seamless connectivity for voice, full data, and video applications.
The next-generation Block 2 BlueBird satellites, featuring communication arrays up to 2,400 square feet, are expected to deliver up to 10 times the bandwidth capacity of the current fleet. This advancement will enable peak data transmission speeds of 120 Mbps, supporting a wide range of native cellular capabilities and enhancing user experiences for both commercial and government applications.
Financing and Regulatory Milestones
To facilitate this landmark agreement, AST SpaceMobile has secured a $550 million institutional financing commitment. This funding will support a planned wholly owned special-purpose vehicle (SPV) through a non-recourse senior-secured delayed-draw term loan facility, subject to customary closing conditions. The financing underscores the immense value and attractiveness of the acquired spectrum, which provides significant synergistic benefits for AST SpaceMobile’s operations.
Under the Term Sheet, AST SpaceMobile will make staged payments to Inmarsat on behalf of Ligado, contingent on regulatory approvals and other closing conditions. These include:
- $420 million payable on October 31, 2025.
- $100 million payable on March 31, 2026.
- $15 million payable upon receiving regulatory approval and closing the transaction.
To ensure financial flexibility, AST SpaceMobile has negotiated a backstop commitment from a highly credible group of lenders. This commitment guarantees a full refund of payments if regulatory approvals are not obtained and the transaction does not close. The company plans to secure institutional financing based on this backstop to meet its obligations ahead of the delayed-draw loan facility becoming effective.
Accelerating Innovation in Satellite Connectivity
The acquisition of up to 45 MHz of lower mid-band spectrum represents a pivotal step in AST SpaceMobile’s mission to bridge the digital divide. By combining its groundbreaking satellite technology with access to premium spectrum, the company is well-positioned to deliver unparalleled connectivity solutions. This spectrum, known for its superior penetration and coverage characteristics, will enable AST SpaceMobile to expand its reach and provide reliable, high-speed internet access to underserved and remote areas.
AST SpaceMobile’s obligation to begin making spectrum access usage payments to Ligado will commence on September 30, 2025, as outlined in the Term Sheet. Once finalized, the transaction will integrate seamlessly with AST SpaceMobile’s existing plans for low-band spectrum, creating a robust hybrid network capable of meeting diverse connectivity needs.
A Bold Vision for the Future
AST SpaceMobile’s pioneering approach to space-based cellular broadband has consistently pushed the boundaries of what’s possible in satellite communications. With this latest development, the company is poised to accelerate its rollout of direct-to-device services, leveraging the largest available block of high-quality nationwide spectrum to deliver unmatched performance and reliability.
By pairing its cutting-edge satellite technology with strategic partnerships and innovative financing solutions, AST SpaceMobile is charting a new course for global connectivity. As it continues to deploy its next-generation satellites and expand its network, the company remains committed to transforming how people connect—anytime, anywhere.
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.
