Vodafone Deal Important Milestone
Just a few days ago, AST SpaceMobile (NASDAQ: ASTS, WKN: A3CL8W), an upcoming provider of satellite mobile communications, announced that it had signed a long-term contract with mobile operator Vodafone lasting until 2034 (We reported.) Deutsche Bank analysts see this as a major step towards the commercialization of AST SpaceMobile’s technology.
The experts point out that Vodafone’s extensive presence in Europe, Africa, India, and the Middle East provides ASTS access to a large market that will be crucial for the company to achieve its goals. Vodafone, Deutsche Bank continues, will likely become AST SpaceMobile’s largest customer/partner. The recently announced agreement, they added, is scalable across Vodafone’s entire ‘home’ and partner markets in the mentioned countries, and the mobile operator alone has more than 250 million subscribers in its home markets.
The bankers believe that the new agreement between the partners solidifies the terms of their commercial relationship. This includes, they continued, mutual exclusivity (initially for 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 in Vodafone’s network.
Technology and Business Plan Validated
Deutsche Bank believes that the conclusion of such commercial agreements – ASTS was also able to report deals with AT&T and Verizon in the USA this year – represent important milestones for the company. On one hand, this gives AST SpaceMobile access to the respective mobile providers’ customer base, while the agreements simultaneously demonstrate the partners’ confidence in ASTS’s technology and business plan. Deutsche Bank also believes that the agreement with Vodafone provides a framework for further deals with mobile providers as AST SpaceMobile works to expand its global presence.
The analysts believe that the company will be able to offer its services in northern latitudes from 2026 and will generate $3 billion in this market by 2030 – and another $1.5 billion in its equatorial markets.
Deutsche Bank views AST SpaceMobile as a ‘Buy’ and sees the price target for the ASTS stock at $53. Currently, a share of AST SpaceMobile costs only $24.78 USD on the Nasdaq.
