AST SpaceMobile Gains Long-Term Access to 45 MHz Mid-Band Spectrum Across North America

AST SpaceMobile Gains Long-Term Access to 45 MHz Mid-Band Spectrum Across North America
by Clarence Oxford
Los Angeles CA (SPX) Jun 16, 2025

AST SpaceMobile (NASDAQ: ASTS) has announced a Settlement Term Sheet involving Ligado Networks, Viasat, and Inmarsat that, once finalized, will provide the company with long-term access to up to 45 MHz of valuable lower mid-band spectrum in the U.S. and Canada for its direct-to-device satellite services.

Under the agreement, Inmarsat will support AST SpaceMobile's rights to use up to 40 MHz of L-Band spectrum in North America for over 80 years, plus an additional 5 MHz in the 1670-1675 MHz band in the U.S. The deal is part of Ligado's ongoing restructuring process. Inmarsat will also endorse AST SpaceMobile's regulatory filings with the FCC and Canada's ISED to operate a non-geostationary satellite orbit (NGSO) system within this spectrum.

This Term Sheet supplements a March 2025 agreement between AST SpaceMobile and Ligado and remains contingent upon court approval, anticipated before June's end. Once completed, the transaction will enhance AST's capabilities, combining extensive LEO-based network technology with nationwide mid-band access, complementing its low-band spectrum assets known for deep coverage.

Following regulatory approval, AST SpaceMobile will pay Ligado $550 million, including $535 million to Inmarsat. To support this, AST has secured a $550 million institutional financing commitment for a non-recourse, senior-secured delayed-draw term loan through a special-purpose vehicle.

As part of resolving litigation between Ligado and Inmarsat, AST SpaceMobile has committed to advance payments totaling $535 million to Inmarsat on Ligado's behalf-$420 million due October 31, 2025, $100 million on March 31, 2026, and $15 million upon regulatory approval and transaction closing-contingent on a backstop commitment ensuring full refunds if approvals are not obtained. Financing for these pre-closure payments is already committed.

AST SpaceMobile will begin spectrum access payments to Ligado starting September 30, 2025, as stipulated in the agreement.

Currently, the company operates five BlueBird satellites in low Earth orbit. Each features a 700-square-foot array, providing intermittent cellular broadband over the U.S. and select regions globally. These satellites aim for full national coverage with over 5,600 U.S. service cells. The next-generation Block 2 BlueBirds will carry arrays as large as 2,400 square feet, delivering up to 120 Mbps data rates and enhanced voice and video capability.