AST SpaceMobile, Inc. has announced a settlement term sheet that will provide the company with long-term access to up to 45 MHz of premium lower mid-band spectrum in the United States and Canada for direct-to-device satellite applications. This multi-party term sheet involves AST SpaceMobile, Ligado Networks LLC, Viasat, Inc., and Inmarsat Global Limited.
Upon approval, the settlement term sheet provides AST SpaceMobile with long-term spectrum usage rights for 80+ years to up to 40 MHz of L-band MSS spectrum in the United States and Canada held by Ligado, as well as access to an additional 5 MHz in the 1670-1675 MHz band in the United States. This transaction is expected to add additional capabilities to AST SpaceMobile’s technology and space-based network, enabling the company to deliver peak data transmission speeds of up to 120 Mbps.
The financial aspects of the settlement include AST SpaceMobile's agreement to pay approximately $550 million to Ligado, of which $535 million will be paid to Inmarsat. To support this consideration, AST SpaceMobile has received a $550 million institutional financing commitment to finance a planned wholly owned special-purpose vehicle (SPV) in the form of a non-recourse senior-secured delayed-draw term loan facility.
Furthermore, AST SpaceMobile has agreed to certain payments ahead of closing, subject to certain conditions. This includes a payment of $420 million to Inmarsat on Ligado’s behalf on October 31, 2025, $100 million on March 31, 2026, and $15 million upon receiving regulatory approval and closing of the transaction.
AST SpaceMobile currently operates its first five commercial bluebird satellites into low earth orbit, with each satellite featuring the largest-ever commercial communications arrays deployed into low earth orbit, reaching approximately 700 square feet in size. The company plans to launch the next-generation block 2 bluebirds, which will feature up to 2,400 square-foot communications arrays designed to deliver up to 10 times the bandwidth capacity of the current satellites, enabling peak data transmission speeds of up to 120 Mbps.
The company aims to eliminate connectivity gaps for mobile subscribers and bring broadband to those who remain unconnected. As a result of these announcements, the company's shares have moved -6.11% on the market, and are now trading at a price of $49.97. Check out the company's full 8-K submission here.
