AST SpaceMobile has secured a significant advantage in the competitive direct-to-smartphone (D2C) market by brokering a deal to settle the dispute between Ligado Networks and Viasat (formerly Inmarsat). This agreement allows Ligado, currently in bankruptcy, to fulfill its financial obligations to Viasat and, crucially, grants AST SpaceMobile long-term access to valuable L-band spectrum.
The deal, announced recently, involves AST SpaceMobile providing approximately $550 million to Ligado. A substantial portion, $535 million, will be directed to Viasat to resolve their opposition to Ligado's bankruptcy restructuring plan. This payment settles claims stemming from alleged breaches of a 2007 L-band cooperation agreement.
What the Deal Means for AST SpaceMobile
This agreement provides AST SpaceMobile with access to 45 MHz of spectrum, including 40 MHz of L-Band MSS and an additional 5 MHz in the 1670-1675 MHz band. This spectrum will be instrumental in bolstering AST's planned direct-to-smartphone services. It also allows AST SpaceMobile to compete more effectively with established players like Starlink.
Key Terms of the Agreement
- Ligado will receive about $550 million from AST SpaceMobile.
- $535 million will go to Viasat to settle the dispute.
- AST SpaceMobile will fund the deal with a $550 million loan.
- AST gains access to key L-band spectrum for over 80 years.
Pending bankruptcy court approval, Ligado is obligated to make quarterly payments of around $16 million to Viasat, starting September 30, for the use of the radio waves. These payments are scheduled to increase by 3% annually through the end of the agreement in 2107.
Background of the Ligado Spectrum
Ligado's efforts to repurpose the L-band spectrum for a terrestrial 5G network have faced challenges due to GPS interference concerns raised by government agencies and the telecom industry. This ultimately led to Ligado's bankruptcy filing in January 2025. This deal represents a new path forward, leveraging the spectrum for direct-to-smartphone satellite connectivity. The deal's closing is subject to regulatory approval and customary conditions.