(Reuters) -Telecom giant AT&T has struck a deal with satellite provider AST SpaceMobile to deliver a space-based broadband network direct to cell phones, the companies said on Wednesday.
AST SpaceMobile’s shares shot up nearly 33.5% in extended trading.
The Texas-based company plans to dispatch five satellites from Cape Canaveral into low-Earth orbit this summer, aiming to start commercial service.
AT&T head of network Chris Sambar will join AST SpaceMobile’s board as part of the agreement.
The companies have been working together since 2018 under a memorandum of understanding.
(Reporting by Arasu Kannagi Basil in Bengaluru; Editing by Alan Barona)
