Telus enters space service deal with AST SpaceMobile

Executive Summary

• Telus Corp. and AST SpaceMobile Inc. have signed a commercial agreement to deploy space-based cellular broadband connectivity across Canada, targeting remote areas where traditional infrastructure is unavailable.
• As part of the deal, Telus will invest in ground-based satellite infrastructure and acquire an equity stake in AST SpaceMobile, aligning the companies' long-term interests.
• The service is scheduled to launch in late 2026, allowing Telus customers to use standard smartphones for texts, calls, and data in remote locations without additional hardware.

Key Details

• Parties Involved: Telus Corp. (Canadian telecommunications provider) and AST SpaceMobile Inc. (developer of space-based cellular broadband network).
• Transaction Structure: Commercial agreement combined with an equity investment by Telus in AST SpaceMobile.
• Investment Details: Telus will invest in ground-based satellite infrastructure and become an equity shareholder in AST SpaceMobile. Specific financial terms of the equity stake were not disclosed in this release.
• Service Launch Timeline: Planned for late 2026.
• Technology & Infrastructure:
  • Utilizes AST SpaceMobile’s low Earth orbit (LEO) satellite constellation featuring the largest commercial phase arrays ever deployed in LEO.
  • Integrates with Telus’s existing wireless network.
  • Requires no special equipment; customers use existing standard smartphones.
• Coverage Scope: Aims to provide connectivity in Canada's most remote locations, including backcountry areas, remote job sites, and isolated communities.
• Capabilities: Service includes sending texts, making calls, and using data.
• Strategic Rationale:
  • Telus: Eliminates connectivity gaps, enhances 5G+ and LTE speeds/signals in rural/urban areas, and fulfills commitment to universal connectivity.
  • AST SpaceMobile: Addresses challenges posed by Canada's vast geography, dispersed communities, and remote industries.

Notable Quotes

• Nazim Benhadid, Chief Technology Officer, Telus Networks: "By combining Telus's award-winning wireless network and AST SpaceMobile's innovative satellite technology, we're eliminating connectivity gaps across Canada and ensuring our customers in even the most remote corners of the country can stay connected to what matters most, when it matters the most... This is a significant milestone in our commitment to keep all Canadians connected, no matter where they live, work or explore."
• Chris Ivory, Chief Commercial Officer, AST SpaceMobile: "Canada's vast geography, remote industries and dispersed communities make universal connectivity both a challenge and a necessity... Together, we are working to redefine what mobile coverage means for Canadians, using the smart phones they already carry every day."