June 19, 2024
Investment

AST SpaceMobile bags $155 mn strategic investment from AT&T, Google, Vodafone, ET Telecom


NEW DELHI: AST SpaceMobile has secured $155 million in strategic investment from AT&T, Google, and existing investor Vodafone which will support the commercial rollout of the startup’s space-based cellular network.

In addition to the $155 million strategic investment, AST SpaceMobile plans to draw up to $51.5 million from the company’s existing senior secured credit facility for aggregate new financing of up to $206.5 million, the firm said on Friday.

The investment includes $110 million of 10-year subordinated convertible notes with 5.50% interest, with a conversion price of $5.75 per share – a 39% premium to the closing trading price on January 16 – invested by AT&T, Google and Vodafone; $20 million revenue commitment from AT&T based on the launch and successful initial operation of the first five commercial satellites; and $25 million minimum revenue commitment from Vodafone, subject to a definitive agreement, as per the statement.

continued below

In addition to the strategic investment, the new investors have expanded their strategic and commercial ties to support the buildout of the SpaceMobile network.

Vodafone and AT&T have placed purchase orders, for undisclosed amount, for network equipment from AST SpaceMobile to support planned commercial services, while Google and the startup have agreed to collaborate on product development, testing and implementation plans for network connectivity on Android and related devices.

“Our vision at AST SpaceMobile has always been to chart a course of collaborative innovation and integration with the world’s leading wireless companies, which is why we are so thrilled to be welcoming this new strategic investment from AT&T, Google and Vodafone,” said Abel Avellan, Chairman and CEO of AST SpaceMobile.

This investment comes alongside prior investments by other telecom players, including Rakuten, American Tower, and Bell Canada, who are both part owners, and serve as technology partners and customers of AST SpaceMobile.

“We’re excited to deepen our relationship with this investment as we continue to drive a first-of-its-kind innovation forward and work together to achieve this shared vision of space-based connectivity for consumers, businesses and first responders all around the globe,” said Chris Sambar, Executive Vice President, Head of Network, AT&T.

“Vodafone’s investment and collaboration with AST SpaceMobile will help make our mobile connectivity services available everywhere for our customers across Europe and Africa. Customers in remote rural areas, on land or out at sea, will be able to benefit from fast and reliable 5G broadband directly to their existing smartphones without the need for specialist equipment,” said Margherita Della Valle, Vodafone Group chief executive.

  • Published On Jan 19, 2024 at 08:49 AM IST

Most Read in Satcom

Join the community of 2M+ industry professionals

Subscribe to our newsletter to get latest insights & analysis.

Download ETTelecom App

  • Get Realtime updates
  • Save your favourite articles



Source link

Leave a Reply

Your email address will not be published. Required fields are marked *

We use cookies on our website to give you the most relevant experience by remembering your preferences and repeat visits. By clicking “Accept All”, you consent to the use of ALL the cookies. However, you may visit "Cookie Settings" to provide a controlled consent. View more
Accept
Decline