AST SpaceMobile has acquired a 45MHz block of L-band spectrum across the U.S. and Canada from Ligado Networks, following Ligado’s declaration of bankruptcy. This acquisition allows AST to provide satellite-based cellular services independently, no longer reliant on partners like AT&T or Verizon.

Previously, AST had agreements with major carriers, including Verizon and AT&T, to use their licensed frequencies to provide satellite connectivity to customers’ phones.

However, with the new spectrum rights, AST can now operate independently, strengthening its ability to transmit satellite data directly to phones via the acquired radio bands.

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Ligado Networks, which was also working on cellular satellite services in collaboration with Viasat and Skylo, declared bankruptcy on Monday. As part of the deal, AST SpaceMobile exchanged approximately $113 million worth of stock for the spectrum rights. In return, Ligado granted AST the right to use the spectrum for more than 80 years across U.S. and Canada.

The acquisition strengthens AST’s ability to transmit satellite data to phones through the additional radio bands. The company is celebrating the deal as a victory, marking its transition to an independent satellite service provider.

AST SpaceMobile now independent of offering its cellular satellite services 

This implies that AST is not dependent on its carrier partners and can provide its cellular satellite services on its own.

AST has agreements with Verizon and AT&T in the US to eventually provide satellite connectivity to customers’ phones, but only using their licensed radio frequency.

Although AST did not provide specifics, it anticipates that the Ligado agreement will enable it to expand its capacity “while enabling peak data transmission speeds up to 120Mbps to everyday smartphones everywhere in the continental United States.”

The drawback is that older phones usually don’t support L-band reception, so AST might have to reconfigure its BlueBird satellites to utilise the L-band spectrum, according to satellite industry analyst Tim Farrar.

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AST SpaceMobile sent first BlueBird satellites into Earth’s orbit 

In September, AST sent its first set of BlueBird satellites into Earth’s orbit. However, the company still needs to launch dozens of more satellites before it can start providing US clients with complete coverage.

Furthermore, regulatory clearance is still required for AST to test and run such services for profit in the United States.

The company’s agreement with Ligado is anticipated to be finalised in the first half of 2025.

Ligado might get $550 million from the purchase, according to AST, if specific closing conditions are met. For spectrum usage rights, AST SpaceMobile would also “give Ligado long-term net revenue sharing rights” and pay roughly $80 million annually.