AST SpaceMobile acquires Starlink in the field of direct-to-cell communications

AST Space Mobile (ASTS) just signed a major deal with Telus (TU) for direct-to-cell satellite communications in remote areas of Canada. The partnership marks an important step in expanding mobile coverage to areas long plagued by dead zones, using everyday smartphones without special hardware. This agreement positions AST SpaceMobile to potentially take a leap forward SpaceX‘s Starlink, which also focuses on Canada through its partnership with Canada Rogers Communications (RCI).

However, the Telus deal gives ASTS a notable lead, thanks to its innovative ‘space-based cell tower network’ that promises seamless integration with existing mobile operators and superior performance in challenging environments.

The Telus partnership changes the trajectory

Telus and AST SpaceMobile yesterday announced a commercial agreement to deliver mobile broadband in space across Canada, with a launch in late 2026. Telus customers will be able to access satellite-enabled text messaging, voice calling and data in the country’s most remote locations, all using their existing smartphones without the need for additional equipment.
As part of the deal, Telus will invest in ground satellite infrastructure to support the network rollout and become an equity shareholder in AST SpaceMobile. Telus will also take an equity stake in ASTS, strengthening the long-term alignment between the companies, although specific financial terms were not disclosed. The partnership leverages TU’s extensive terrestrial network and spectrum for smooth integration with ASTS’s satellite system.

Higher bandwidth and broader capabilities

AST SpaceMobile aims to deliver true 4G/5G quality voice, data and video services directly to standard, unmodified smartphones, targeting peak download speeds in excess of 120 Mbps. This enables high-definition streaming, video calling and robust internet usage even in areas without ground towers – which poses a direct challenge to Starlink’s current Direct-to-Cell offering, which remains primarily focused on text messaging in its early stages with partners like Rogers.

The advantage comes from ASTS’s satellite architecture. Unlike Starlink’s approach of deploying thousands of smaller satellites, AST SpaceMobile uses massive BlueBird satellites designed to function as cell towers in space. These large platforms feature extensive phased-array antennas, providing greater bandwidth, greater user capacity and more reliable connections. Starlink’s smaller satellites often require a clearer line of sight, which can lead to performance issues in forested, mountainous or obstructed Canadian terrain. AST’s design minimizes such limitations and supports seamless transfers between terrestrial and satellite networks.

In short

The Telus partnership adds powerful momentum to ASTS’ existing alliances with telecom giants such as AT&T (T), Verizon (VZ), and Vodafone (RAG). Together, these relationships open potential access to more than 3 billion mobile users worldwide, creating a truly global footprint. The agreement solidifies AST SpaceMobile as the premium, operator-integrated, high-bandwidth alternative to Starlink’s broader, but lower speed direct-to-cell strategy and its more consumer-direct model.

As both companies race to eliminate connectivity dead zones, ASTS’s focus on massive ‘cell tower’ satellites and carrier partnerships positions it as a formidable competitor – potentially reshaping how millions of people stay connected in remote areas and beyond