AT&T has inked a deal with AST SpaceMobile to bring satellite service to everyday cell phones, rivaling a similar T-Mobile/SpaceX deal.

Satellite-based cellular networks are becoming an important factor in providing coverage to remote areas. T-Mobile inked a deal with SpaceX in mid-2022 to provide coast-to-coast coverage, thanks to satellite-based service.

AT&T’s deal with AST SpaceMobile extends until 2030, with the latter deploying its first commercial satellites this summer. Like SpaceX, AST SpaceMobile is deploying low Earth orbit (LEO) satellites, meaning they provide faster speeds and lower latency than traditional satellite services of the last decade. As a result, LEO satellite constellations can often rival terrestrial broadband services.

Because the satellites are being used to deliver traditional cellular service, customers benefit by being able to use the service with their existing phones, rather than being required to buy satellite-specific phones.

“Space-based direct-to-mobile technology is designed to provide customers connectivity by complementing and integrating with our existing mobile network,” said Jeff McElfresh, Chief Operating Officer, AT&T. “This agreement is the next step in our industry leadership to use emerging satellite technologies to provide services to consumers and in locations where connectivity was not previously feasible.”

“Working together with AT&T has paved the way to unlock the potential of space-based cellular broadband directly to everyday smartphones. We are thrilled to solidify our collaboration through this landmark agreement,” said Abel Avellan, AST SpaceMobile Founder, Chairman, and CEO. “We aim to bring seamless, reliable service to consumers and businesses across the continental U.S., transforming the way people connect and access information.”