10:30 AM EDT, 10/08/2025 (MT Newswires) -- AST SpaceMobile ( ASTS ) said Wednesday that it agreed to provide its direct-to-cellular service to customers of telecommunications giant Verizon Communications ( VZ ) from next year.

The companies aim to use Verizon's 850 megahertz cellular spectrum and AST's space-based cellular network to enable customers to stay connected "when needed," AST said. Financial terms of the deal weren't disclosed.

"Through our definitive commercial agreement with Verizon, we are working to deliver space-based cellular broadband coverage from space across the continental United States," AST Chief Executive Abel Avellan said in the Wednesday statement. "The agreement will extend the scope of Verizon's 850 MHz premium low-band spectrum into areas of the US that would benefit from the ubiquitous reach of space-based broadband technology."

The agreement expands a partnership the two companies announced in May 2024, when AST secured a $100 million commitment to provide its services to Verizon customers.

Shares of AST climbed 9.9% in Wednesday trade, and have surged 289% so far this year. Verizon's stock edged down 0.6%.

"We are not just filling in the map; we are creating a new paradigm of connectivity that will unlock the full potential of the digital age," Verizo's senior vice president of technology and product development, Srini Kalapala, said.

Earlier in the week, Verizon named former PayPal (PYPL) CEO Dan Schulman as its new chief executive, succeeding Hans Vestberg, who also stepped down as chairman. Mark Bertolini become the company's new chairman.

Verizon reiterated its full-year guidance for 2025, and delayed the release of its third-quarter results to Oct. 29 from Oct. 21.

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