Verizon Communications, Inc. VZ demonstrated significant advancements in satellite-to-cellular connectivity in collaboration with AST SpaceMobile ASTS. AST SpaceMobile is steadily developing a space-based cellular broadband network to operate directly with standard, unmodified mobile devices based on its extensive IP and patent portfolio.
In Mid-2024, Verizon formed a strategic partnership with ASTS to deliver direct-to-cellular service across the country for the former’s customers. Verizon pledged $100 million in this venture. The deal aims to target 100% coverage across the U.S. leveraging Verizon’s industry-leading terrestrial network, multi-operator premium 850 MHz cellular spectrum and ASTS powerful commercial communication arrays in low earth orbits.
In January 2025, ASTS secured Special Temporary Authority from the Federal Communications Commission. This authorized ASTS to use its commercial BlueBird satellites to test smartphones connected to satellite networks for voice, video applications and other native cellular broadband capabilities. In the recent venture, Verizon and ASTS have successfully completed a video call between two mobile devices with one device connected to the former’s terrestrial network connection and the other connected to the satellite network.
Will This Venture Drive VZ’s Share Performance?
Despite rapid 5G expansion, a vast portion of the United States is still outside of the network coverage area. Geographical challenges and sparsely populated areas make it economically unviable to deploy network connectivity for service providers. Moreover, poor connectivity and dead zones remained a major issue in many urban locations as well. Verizon is aiming to combine its extensive terrestrial network infrastructure with ASTS’ capabilities to develop the fastest satellite-to-device network that brings seamless text, voice and video calling capabilities for consumers across the country.
Verizon’s major competitor T-Mobile, US, Inc. is also working with Starlink to develop advanced direct-to-cell technology. The company recently launched a beta program for its direct-to-cell service. Amid this development, collaboration with AST SpaceMobile will strengthen Verizon’s position in the emerging market of satellite connectivity.
VZ Stock’s Price Movement
Shares of Verizon have gained 3.3% in the past year compared with the industry’s growth of 41.8%.
Image Source: Zacks Investment Research
VZ’s Zacks Rank & Key Picks
Verizon currently carries a Zacks Rank #3 (Hold).
Some better-ranked stocks in the broader industry have been discussed below.
InterDigital IDCC sports a Zacks Rank #1 (Strong Buy) at present. You can see the complete list of today’s Zacks #1 Rank stocks here.
In the trailing four quarters, it delivered an earnings surprise of 158.41%. It is a pioneer in advanced mobile technologies that enable wireless communications and capabilities. The company designs and develops a wide range of advanced technology solutions, used in digital cellular, wireless 3G, 4G and IEEE 802-related products and networks.
Akamai Technologies, Inc. AKAM currently carries a Zacks Rank #2 (Buy). AKAM delivered an earnings surprise of 2.69%, on average, in the trailing four quarters. The company’s solutions accelerate and improve the delivery of content over the Internet, enabling faster response to requests for web pages, streaming of video & audio, business applications, etc. Its offerings are intended to reduce the impact of traffic congestion, bandwidth constraints and capacity limitations on customers.
Only $1 to See All Zacks' Buys and Sells
We're not kidding.
Several years ago, we shocked our members by offering them 30-day access to all our picks for the total sum of only $1. No obligation to spend another cent.
Thousands have taken advantage of this opportunity. Thousands did not - they thought there must be a catch. Yes, we do have a reason. We want you to get acquainted with our portfolio services like Surprise Trader, Stocks Under $10, Technology Innovators,and more, that closed 256 positions with double- and triple-digit gains in 2024 alone.
See Stocks Now >>Verizon Communications Inc. (VZ) : Free Stock Analysis Report
Akamai Technologies, Inc. (AKAM) : Free Stock Analysis Report
InterDigital, Inc. (IDCC) : Free Stock Analysis Report
AST SpaceMobile, Inc. (ASTS) : Free Stock Analysis Report
This article originally published on Zacks Investment Research (zacks.com).
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
