Saudi Arabia’s stc Group commits $175 million prepayment in AST SpaceMobile deal

TAMPA, Fla. — Saudi telecoms giant stc Group has signed a 10-year agreement that includes a $175 million prepayment commitment to use AST SpaceMobile’s planned space-based cellular broadband network, the Texas-based venture announced Oct. 29.

The agreement follows similar deals the low Earth orbit (LEO) operator has announced in the United States with AT&T and Verizon, which are providing the cellular frequencies the constellation would use in the country alongside satellite spectrum.

AST said its satellites would be integrated with stc’s terrestrial infrastructure under its latest agreement, expanding mobile coverage across Saudi Arabia and “select countries in the Middle East and Africa.”

The Saudi company operates a variety of connectivity-related businesses across a 15-country operating footprint, from mobile network operators (MNOs) to cybersecurity services. 

AST did not detail expansion plans beyond Saudi Arabia, where stc has MNO subsidiaries in Kuwait and Bahrain.

“We have flexibility on go to market strategies that we pursue together with our partner, stc,” an AST spokesperson said via email without elaborating.

The companies plan to launch services before the end of 2026, subject to licensing and other regulatory approvals on a country-by-country basis.

In a news release announcing the agreement, AST said it will build three ground gateways in Saudi Arabia to facilitate services in the region, along with a network operations center in Riyadh, the country’s capital.

The company says it has struck partnerships with more than 50 MNOs to date.

Getting to service

Five BlueBird satellites are currently in LEO, but the operator needs 45-60 of them to provide continuous coverage across anchor markets.

The sixth BlueBird — part of a next-generation that, at 223 square meters, would be more than three times the size of its predecessors — was shipped Oct. 12 to India for launch. That satellite would overtake those in its earlier generation to boast the largest commercial antenna ever deployed in LEO.

AST hopes to follow up the mission with an aggressive launch campaign to reach up to 60 satellites by the end of 2026, although future deployments lean heavily on Blue Origin’s delayed New Glenn rocket.

The company’s shares jumped nearly 3% to close at $80.06 Oct. 29, up almost 270% from the start of the year amid optimism about its place in the fledgling direct-to-device market, even as competition from SpaceX and other rivals intensifies.