AST SpaceMobile, Inc (NASDAQ:ASTS) stock is trading higher Monday after Chairman and CEO Abel Avellan published a letter to partners, shareholders, and future space-based cellular broadband network users.

Avellan said the strategic partnership with Verizon Communications Inc (NYSE:VZ), building on its existing agreement with AT&T Inc (NYSE:T), aims to eliminate connectivity gaps across the United States by deploying a space-based cellular broadband network. AST SpaceMobile stock gained after the update.

The partnership with Verizon secures additional capital via prepayments and convertible notes, accelerating AST SpaceMobile's mission to achieve 100% geographical coverage in the continental U.S., the letter highlighted.

AT&T and Verizon will share portions of their 850 MHz low-band spectrum with AST SpaceMobile, as per Avellan. This spectrum offers superior signal penetration, ensuring coverage even in remote areas.

AST SpaceMobile plans to deploy the most significant commercial communications satellite in low Earth orbit, he said. The satellite array will act as a giant cell tower, providing strong signals directly reaching standard smartphones.

The Next Generation BlueBird satellites feature the AST5000 ASIC architecture, which offers a tenfold improvement in processing bandwidth.

In June, AST SpaceMobile tapped Andrew Johnson to the additional role of Chief Financial Officer while continuing as Chief Legal Officer. The company promoted Shanti Gupta, Chief Accounting Officer, to the position of Chief Operating Officer.

AST SpaceMobile stock gained over 155% in the last 12 months. Investors can gain exposure to the stock via iShares Russell 2000 ETF (NYSE:IWM) and iShares Russell 2000 Growth ETF (NYSE:IWO).

ASTS Price Action: AST SpaceMobile shares were up 2.15% at $11.87 at the last check Monday.

Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.

Photo via Shutterstock