Verizon’s partnership with AST SpaceMobile will keep subscribers connected across the U.S.

The $100 million that Verizon has committed to the partnership with AST Space Mobile consists of $65 million in commercial prepayments ($45 million is subject to certain conditions) and a $35 million investment by Verizon in convertible notes. AST Space Mobile already has deals with over 45 mobile network operators globally that combined count 2.8 billion consumers as subscribers.

Discussing the “strategic partnership” with AST Space Mobile, Srini Kalapala, Senior Vice President of Technology and Product Development at Verizon, said, “Verizon has always been strategic and efficient with our spectrum strategy. We use the spectrum entrusted to us to deliver outstanding cellular service for our customers through our terrestrial network. By entering into this agreement with AST, we will now be able to use our spectrum in conjunction with AST’s satellite network to provide essential connectivity in remote corners of the U.S. where cellular signals are unreachable through traditional land-based infrastructure.”

If you happened to take a flyer on AST Space Mobile’s shares on Tuesday, congratulations are in order. When the partnership with Verizon was announced early Wednesday morning, the stock, which trades on NASDAQ under the symbol ASTS, soared more than 69% to close at $9.02. After hours, an additional 3.65% was tacked on as the stock closed at $9.34.