AST SpaceMobile, Inc. (NASDAQ:ASTS) shares are trading higher premarket on Monday. The company inked a deal with Vodafone Group Plc (NASDAQ:VOD) to establish a jointly-owned European satellite service venture, “SatCo.”
SatCo aims to provide full geographic coverage across Europe, enabling consumers and businesses to access secure space-based cellular broadband via their mobile network operators (MNOs). This new entity will cater to MNOs across European markets.
As the exclusive distributor of AST SpaceMobile’s satellite services in Europe, SatCo will operate under a turnkey model, supported by a European-based network management center leveraging Vodafone’s engineering expertise.
It will also establish ground stations to connect MNOs to the satellite network in low Earth orbit.
Margherita Della Valle, Vodafone Group CEO, said: “Vodafone’s space-based mobile broadband will mean our customers can stay connected, wherever they are. Our new satellite company will be able to offer this pioneering technology to other European mobile operators through a turnkey service that combines Vodafone’s leading network and engineering with AST SpaceMobile’s ‘antennas in the sky’.”
Notably, last month, Vodafone, AST SpaceMobile, and the University of Málaga partnered to establish a space and land mobile broadband research hub, which is expected to open by Summer 2025.
Additionally, AST SpaceMobile is expanding in Spain with a new 5,600-square-meter manufacturing and office facility in Barcelona, boosting production capacity and accelerating satellite and telecom system testing.
Last week, the company was awarded a $43 million contract in support of the U.S. Space Development Agency through its prime contractor.
AST is anticipated to release its 2024 fiscal-year fourth-quarter earnings report today after the market closes. Analysts estimate a loss of 17 cents per share and revenue of $19.20 million, per data from Benzinga Pro.
Investors can gain exposure to the ASTS via Procure Space ETF (NASDAQ:UFO) and SPDR S&P Telecom ETF (NYSE:XTL).
Price Action: ASTS shares are up 7.05% at $29.02 premarket at the last check Monday.
Read Next:
Image: Shutterstock/ nmedia.