Shares of space-based cellular broadband company AST SpaceMobile Inc ( ASTS ) are moving higher Thursday after the company and AT&T Inc ( T ) announced a definitive commercial agreement.

What To Know: AST SpaceMobile ( ASTS ) has entered into a definitive commercial agreement with AT&T ( T ) to provide a space-based broadband network direct to everyday cell phones. The two companies were previously working together under a Memorandum of Understanding. The new agreement extends the collaboration until 2030.

"This is not just one small step, but one giant leap towards enhanced connectivity for consumers and businesses across the country," the company said.

AST SpaceMobile ( ASTS ) plans to deliver its first five commercial satellites to Cape Canaveral for launch into low Earth orbit this summer to enable commercial service.

AST SpaceMobile ( ASTS ) also reported financial results for the first-quarter after the market close on Wednesday. The company reported first-quarter sales of $500,000, which missed analyst estimates of $5.5 million, according to data from Benzinga Pro. AST SpaceMobile ( ASTS ) reported an adjusted loss of 16 cents per share, which beat estimates for a loss of 21 cents per share.

"I am grateful for our global team's unwavering dedication and hard work as we prepare for the launch of our first five commercial satellites and initial commercial service. We are set up for an exciting summer ahead as we push forward on all fronts of our business," said Abel Avellan, chairman and CEO of AST SpaceMobile ( ASTS ).

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ASTS Price Action: AST SpaceMobile shares were up 29.7% at $3.10 at the time of publication Thursday morning, according to Benzinga Pro.