Big stept towards commercialization
Just a few days ago, AST SpaceMobile (NASDAQ ASTS / WKN A3CL8W), a prospective provider of mobile communications via satellite, announced that it had signed a long-term contract with mobile operator Vodafone until 2034 (we reported) Deutsche Bank analysts see this as a major step towards the commercialization of AST SpaceMobile technology.
The experts point out that Vodafone’s extensive presence in Europe, Africa, India and the Middle East gives ASTS access to a large market that will be crucial for the company to achieve its goals. Vodafone, Deutsche Bank added, is expected to become AST Space Mobile’s largest customer/partner. The recently announced agreement, it added, is scalable to Vodafone’s entire “home” and partner markets in the countries mentioned and the mobile operator has more than 250 million subscribers in its home markets alone.
The bankers believe that the new agreement between the partners solidifies the terms of their commercial relationship. These include mutual exclusivity (for an initial period of five years) and a 50/50 revenue share for AST SpaceMobile. AST will also be fully integrated into Vodafone’s mobile platform, making it compatible with the hardware and software used on the Vodafone network.
Business plan and technology validated
Deutsche Bank believes that the conclusion of such commercial agreements – ASTS has already announced deals with AT&T and Verizon in the USA this year – are important milestones for the company. On the one hand, this gives AST SpaceMobile access to the customer base of the respective mobile operators, while at the same time the agreements demonstrate the partners’ confidence in ASTS’ technology and business plan. Deutsche Bank also believes that the agreement with Vodafone provides the framework for further deals with mobile operators as AST Space Mobile continues to expand its global footprint.
The analysts believe that the company will be able to offer its services in northern latitudes from 2026 and will then generate 3 billion dollars in this market in 2030 – and another 1.5 billion dollars in its equitorial markets.
Deutsche Bank views AST SpaceMobile as a “buy” and sees the price target for ASTS shares at USD 53. One AST SpaceMobile share currently costs just USD 24.78 on the Nasdaq.
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