A non-binding memorandum of understanding ("MoU") has been signed between AST SpaceMobile, Inc. (NASDAQ: ASTS), the company developing the first and only space-based cellular broadband network intended to be directly accessed by standard mobile phones, and Zain KSA ("Zain"), a significant Saudi telecom operator and digital service provider. The agreement was signed in Riyadh during the international LEAP 2023 Tech Conference.
By signing the MoU, AST SpaceMobile and Zain KSA would be able to work together to develop new telecom solutions and satellite-based digital services in Saudi Arabia with the goal of enhancing access to mobile services in remote areas, including on land, at sea, and in the air.
"It gives us great pleasure to work with Zain in Saudi Arabia. According to Chris Ivory, Chief Commercial Officer of AST SpaceMobile, "We anticipate that this collaboration will increase access to dependable, space-based cellular internet for present and future mobile consumers in the country.
Eng. Abdulrahman Al-Mufadda, Chief Technology Officer of Zain KSA, stated, "We are committed to expanding our digital services and communications to deliver an inclusive ecosystem that covers the entire Kingdom with the highest service quality and reliability, thereby enhancing our role in achieving a more connected and sustainable world. "We are optimistic that our partnership with AST SpaceMobile will make it possible to deliver space-based cellular broadband connectivity to the Kingdom, especially in distant places. By doing so, we reiterate our dedication to making sure that everyone who lives on this priceless land is connected, wherever they may be.
The goal of AST SpaceMobile is to offer cellular broadband to the roughly 50% of the world's population that is still without access to the internet and to end the connectivity gaps that today's five billion mobile customers experience as they move in and out of service areas. Leading international providers of cellular infrastructure, including Rakuten Mobile, Vodafone Group, American Tower, and AT&T, are additional participants in this project.
Concerning AST SpaceMobile Based on our substantial IP and patent portfolio, AST SpaceMobile is developing the first and only global cellular broadband network in space to operate directly with conventional, unmodified mobile devices. Our engineers and astronomers are working to close the connectivity gaps that the five billion mobile customers of today experience and to provide broadband to the billions of people who are still offline. Follow AST SpaceMobile on Facebook, Twitter, LinkedIn, and YouTube for more details. An overview of the SpaceMobile mission can be seen in this video.
Regarding Zain KSA Leading telecom company Zain KSA was founded in Saudi Arabia in August 2008 as a listed corporation. With due respect to its highly developed infrastructure, the business was successful in establishing itself as a dependable telecom operator and a digital service provider, offering a wide range of services such as telecom, 5G network, digital payment, cloud, IoT, and drone services.
Future-Looking Remarks The "forward-looking statements" in this communication, which do not relate to the past, involve risks and uncertainties that might cause AST SpaceMobile's actual results to differ significantly from those anticipated and projected. The words "believes," "estimates," "anticipates," "expects," "intends," "plans," "may," "will," "would," "potential," "projects," "predicts," "continue," or "should," or, in each case, their negatives or other variations or comparable terminology, identify these forward-looking statements.
The actual outcomes could significantly differ from the forward-looking statements due to a number of important risks and uncertainties. The majority of these variables are unpredictable and outside the control of AST SpaceMobile. Factors that may cause such differences include, but are not limited to: (i) expectations regarding AST SpaceMobile’s strategies and future financial performance, including AST’s future business plans or objectives, expected functionality of the SpaceMobile Service, anticipated timing and level of deployment of satellites, anticipated demand and acceptance of mobile satellite services, prospective performance and commercial opportunities and competitors, the timing of obtaining regulatory approvals, ability to finance its research and development activities, commercial partnership acquisition and retention, products and services, pricing, marketing plans, operating expenses, market trends, revenues, liquidity, cash flows and uses of cash, capital expenditures, and AST’s ability to invest in growth initiatives; (ii) the negotiation of definitive agreements with mobile network operators relating to the SpaceMobile service that would supersede preliminary agreements and memoranda of understanding; (iii) the ability of AST SpaceMobile to grow and manage growth profitably and retain its key employees and AST SpaceMobile’s responses to actions of its competitors and its ability to effectively compete; (iv) changes in applicable laws or regulations; (v) the possibility that AST SpaceMobile may be adversely affected by other economic, business, and/or competitive factors; (vi) the outcome of any legal proceedings that may be instituted against AST SpaceMobile; and (vii) other risks and uncertainties indicated in the Company’s filings with the SEC, including those in the Risk Factors section of AST SpaceMobile’s Form 10-K filed with the SEC on March 31, 2022.
Even if it goes as planned, testing of the BlueWalker 3 ("BW3") test satellite may reveal adjustments or modifications that are required, any of which could result in additional costs, some of which may be material, and delays in the commercialization of our service. The planned testing of the BlueWalker 3 ("BW3") test satellite may not be completed due to a variety of factors, which could include loss of satellite connectivity, destruction of the satellite, or other communication failures. Due to a number of factors, including the outcomes of BW3 testing, difficulties building our assembly and production facility, launch issues, or supply chain shortages, the production and launch of our BlueBird satellites may not be completed as currently anticipated. Any of these factors could result in additional costs or delays that could be material. If we can raise any money at all, it might cost more if there are complications or delays with the testing of BW3 or the creation and launch of BlueBird satellites. The criteria on the aforementioned list are not all present, AST SpaceMobile warns. Readers are advised not to place excessive reliance on any forward-looking statements because they only apply as of the date they were made, according to AST SpaceMobile. Please refer to the risks incorporated by reference into AST SpaceMobile's Form 10-K filed with the SEC on March 31, 2022, for information outlining significant risks that might cause actual results to materially differ from those expected in the forward-looking statements. The EDGAR portion of the SEC's website, located at www.sec.gov, is where you can find the securities filings for AST SpaceMobile. AST SpaceMobile disclaims any intention or duty to update or alter any forward-looking statements, whether as a result of new information, future events, or other circumstances, unless expressly required under applicable securities law.
