Vodafone and AST
SpaceMobile Unveil Launch Plans For Space-Based
Mobile Network Initially Reaching 1.6 Billion
People
Dec. 16, 2020
AST SpaceMobile, in
partnership with Vodafone Group, unveiled plans
to launch the first phase of its space-based
commercial mobile communications service in
2023. The company has secured the necessary
funding to take the venture to this next stage,
which will cover the 49 largest countries in the
equatorial regions.
Vodafone wants to ensure
that our customers are always connected and
everyone benefits from a digital society. This
is why we are a lead, strategic partner of AST
SpaceMobile, which is uniquely positioned to
provide universal mobile coverage to rural areas
in Africa, and in the future, Europe, further
extending our leading network. The space-based
mobile network will also enable us to provide
instant communications in the event of a natural
or humanitarian disaster.
AST SpaceMobile will be the
first service of its kind to connect standard
mobile phones at 4G and 5G speeds using AST
SpaceMobile's patented space-based network.
Today, more than five billion mobile subscribers
constantly move in and out of wireless coverage,
and AST SpaceMobile's solution will fill these
coverage gaps to enable people to stay connected
whilst on the move. This is a significant
breakthrough in helping to bring affordable
mobile connectivity to more than half of the
world's population that do not have internet on
their phone. Traditional satellite systems
require expensive specialized satellite phones
or ground antenna systems, which is different to
AST SpaceMobile's patented technology, where all
that is needed is the phone in your pocket.
The first tranche of AST
SpaceMobile's launch plans will involve the use
of 20 satellites to offer seamless, low-latency
mobile connectivity that can be accessed by
approximately 1.6 billion people across a vast
geographical region. The initial service will
target an area North and South of the equator,
including rural and remote areas of a number of
markets where Vodafone will integrate the
technology into the services provided by its
Vodacom, Safaricom and Vodafone brands. Subject
to regulatory approval in each market, these
will include DRC; Ghana; Mozambique; Kenya; and
Tanzania. AST SpaceMobile will also apply for
regulatory approval to launch the service in
India.
Shameel Joosub, the CEO of
Vodacom Group, said: "Providing affordable
mobile coverage for everyone requires a blend of
technologies and infrastructure, from
traditional masts to small cells, balloons and
satellites at the edge of space. While we have
been adding deep rural network sites to connect
remote communities without any coverage, the
lack of power in some areas creates
insurmountable obstacles. AST SpaceMobile will
ensure that remote communities in many
sub-Saharan African countries can have access to
the latest digital services."
"We are thrilled to move
forward in executing on phase one of our
commercial launch in conjunction with Vodafone,"
said Abel Avellan, Chairman and Chief Executive
Officer of AST SpaceMobile.
"Our high-speed, low latency platform represents
the world's first venture aimed at massively
closing the digital divide by bringing
affordable and accessible connectivity to the
regions that need it most. We believe our
game-changing solution will serve to drive
universal and global connectivity, allowing
societies to utilize digital technology to gain
greater access to knowledge and information."
In order to support the
phase one commercial launch of its network, AST
SpaceMobile has secured up to US$462 million in
gross proceeds in additional financing. This
will come from existing investors in the company
including Vodafone, Rakuten and American Tower
as well as new financial investors including UBS
O'Connor and a broad base of financial
institutions.
AST SpaceMobile today also
announced that it entered into a business
combination agreement with New Providence
Acquisition Corp. (NASDAQ: NPA, NPAUU and
NPAWW), a publicly traded special purpose
acquisition company, assuming no redemptions of
New Providence's existing public stockholders,
including the private placement backed by
strategic partners, existing investors and a
broad base of financial institutions. Upon
closing of the transaction, AST SpaceMobile will
become a publicly traded company, and it is
expected that its common stock will be listed on
the NASDAQ exchange under the symbol "ASTS". All
AST SpaceMobile shareholders are retaining 100%
of their equity in the combined company. The
cash proceeds are expected to be used to fund
phase one of the commercial launch of AST
SpaceMobile's space assets.
Backed by an extensive IP
and patent portfolio, AST SpaceMobile will
enable global seamless roaming to and from
terrestrial cellular networks, filling mobile
coverage gaps around the world. With initial
access to 1.3 billion subscribers from a group
of the world's largest wireless communications
companies, AST SpaceMobile's services will
ultimately aim to meet the needs of the five
billion mobile subscribers who face broadband
connectivity issues when moving in and out of
terrestrial cellular range and enable mobility
access to more than half of the world population
that does not have access to internet on their
phone.