Rendering of AST SpaceMobile’s Blue Walker 3test satellite in space. Photo: AST SpaceMobile

AT&T, Google, and Vodafone have made a strategic investment in AST SpaceMobile to support the commercial roll-out of AST SpaceMobile’s network. Both AT&T and Google are new investors for the company. 

The investment announced Jan. 19 is a mix of equity-linked capital and non-dilutive commercial payments. According to an announcement, the three companies jointly gave AST SpaceMobile a $110 million, 10-year subordinated convertible notes with 5.50% interest which may be paid in kind, with a conversion price of $5.75 per share. In addition, AT&T made a $20 million revenue commitment and Vodafone made a $25 million revenue commitment. 

Vodafone and AT&T have also placed purchase orders for network equipment from AST SpaceMobile to support planned commercial service. And Google has agreed to collaborate with the company on  product development, testing and implementation plans for SpaceMobile network connectivity on Android and related devices.

In addition to the $155 million strategic investment, the company also plans to draw up to $51.5 million from an existing senior-secured credit facility. This news comes after AST SpaceMobile said in November it was nearing the close of a strategic investment to fund the buildout of its satellite-to-cell fleet.

AST SpaceMobile Chairman and CEO Abel Avellan said the investment gives the company “capital, invaluable expertise, and strategic partnership,” in line with the company’s goal to work with leading wireless companies. 

AST SpaceMobile has hit a number of milestones with its BlueWalker 3 test satellite over the past year, including achieving a 5G connection for voice and data between an unmodified smartphone and its satellite. The company has worked with Vodafone, AT&T, Rakuten, and Nokia on demonstrations.

“Through our work with AST SpaceMobile, we’ve already proven the possibilities that satellite has to offer in helping connect more people via text, voice and video,” commented Chris Sambar, executive vice president, head of Network for AT&T said. “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.”