AST SpaceMobile (ASTS) shares rebound as TELUS satellite tests expand Canadian coverage

TLDR

AST SpaceMobile shares gain support due to TELUS testing
TELUS plans to launch satellite smartphone service next year
AST SpaceMobile expands direct-connected device network strategy

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AST SpaceMobile and TELUS completed their first satellite network integration test. TELUS plans to launch a satellite service with direct connections to smartphones for Canadian customers within a year. Satellite coverage will be targeted at remote areas that cannot be covered by traditional Canadian cellular base stations. AST SpaceMobile's technology supports calls, text messages and broadband connections on ordinary mobile phones. TELUS's satellite integration is expected to improve emergency communications access and enhance network resilience.

AST SpaceMobile's stock closed at $58.44, down 0.02%, and rose 0.27% after hours to $58.60. This trend follows its successful network integration testing with Canadian telecom operator TELUS. The test advances plans to expand direct satellite connectivity beyond traditional cellular coverage.

AST SpaceMobile shares receive support for TELUS testing

TELUS and AST SpaceMobile completed their first integration test between terrestrial wireless and space-based cellular networks. The two companies tested technology designed to connect standard smartphones directly to satellites. As a result, this milestone brings its Canada Satellite Broadband Partnership closer to commercial deployment.

The system supports broadband data, voice calls and text messaging without the need for a dedicated satellite phone. AST SpaceMobile operates low-Earth-orbit satellites equipped with large communications arrays. At the same time, TELUS provides the terrestrial network infrastructure needed to connect satellite services to existing cellular systems.

This integration creates another layer of coverage for locations where conventional base stations cannot provide reliable service. This approach can extend connectivity to highways, wilderness areas, parks and remote communities. It can also enhance network resilience when ground infrastructure faces coverage limitations or service interruptions.

TELUS plans to launch satellite smartphone services next year

TELUS expects to launch satellite services to eligible customers in the next year. Customers will use compatible smartphones that have been designed for regular cellular connections. As a result, users do not need separate satellite equipment when accessing supported space-based services.

The planned services are designed to improve connectivity for travelers and people living outside large cities. It will also support workers in the energy, forestry, construction and natural resources industries. These industries often operate in remote areas with limited traditional mobile infrastructure.

Emergency communications is another major use case for this collaboration. TELUS plans to use satellite connections to expand access to emergency services in uncovered areas. Therefore, when regular cellular coverage is not available, users can get another communication option.

AST SpaceMobile expands direct-connected device network strategy

AST SpaceMobile has developed a satellite network designed to connect directly to ordinary mobile phones. Its business model is to work with established wireless carriers rather than requiring customers to use separate devices. As a result, TELUS's integration supports its broader strategy of expanding existing mobile networks through space.

Canada's partnership also increases TELUS's continued investment in wireless infrastructure across the country. TELUS has expanded 5G+, LTE coverage, network speeds and signal availability in multiple Canadian communities. Satellite coverage will complement these ground-based investments rather than replace existing cellular infrastructure.

Canada is an important use case because large areas are difficult to cover with traditional cellular base stations. Satellite-to-smartphone technology could leverage wireless carriers 'existing infrastructure to reduce these gaps. As a result, the successful integration brings another commercial milestone for AST SpaceMobile as it expands its direct-connected device network.