Shares of Vodafone Idea Limited (VI) were trading in the green and 2% higher on Thursday, 19 June, after the company announced signing a strategic agreement with AST SpaceMobile Inc. to improve mobile coverage in India’s most distant and underserved areas.

In its regulatory filing, the company said, “AST SpaceMobile made history by placing the first ever voice and video call from space using a standard mobile phone, a milestone that demonstrates the real world viability of its advanced technology,” 

India, with more than 1.1 billion mobile subscribers, remains one of the world’s most dynamic telecom markets. While 4G is widely available and 5G is expanding, many areas of the country continue to struggle with mobile connectivity due to difficult terrain. Satellite communication is projected to play an important supporting role in closing these coverage gaps.

Chris Ivory, chief commercial officer of AST SpaceMobile, said, “India, with its vast and dynamic telecom market, is the ideal place to demonstrate how our space-based cellular broadband can seamlessly complement terrestrial networks.”

The agreement will combine Vi’s national mobile network with AST SpaceMobile’s space-based cellular broadband, which links directly to common cell phones without the need for any additional software, device upgrades, or updates.

“Vi has always been committed to leveraging technology to connect every Indian and we see satellite communication as a complement to terrestrial connectivity. As satellite-based mobile access becomes a reality in India, we are looking forward to ushering in a new era of seamless and resilient connectivity,” said Avneesh Khosla, Chief Marketing Officer of Vi.

The cooperation, which aligns with the Digital India initiative’s goals, will focus on the design, deployment, and launch of a satellite-based broadband infrastructure. AST SpaceMobile will create and manage the satellite constellation, while Vodafone Idea will handle terrestrial network integration, spectrum operations, and market access.

Ivory added, “We are not just expanding coverage; we are breaking down barriers to connectivity, enabling everyday smartphones to access 4G and 5G directly from space. Together with Vodafone Idea, we are excited to unlock new possibilities for emergency response, disaster management, agriculture, remote learning, and countless other applications that will benefit from truly ubiquitous mobile broadband.”

The agreement aims to position India at the forefront of global space technology innovation while also allowing Vi and AST SpaceMobile to develop commercial solutions for the consumer, enterprise, and IoT sectors.

Vodafone Idea Limited is one of India’s main telecom service providers, created through a collaboration between the Aditya Birla Group and the Vodafone Group. 

The company provides voice and data services via 2G, 4G, and 5G networks and is rapidly growing its 5G coverage across 17 telecom circles.

With a strong spectrum portfolio that includes mid-band 5G spectrum in 17 circles and mmWave spectrum in 16 circles, Vodafone Idea is committed to satisfying the growing demand for mobile connectivity. 

Vodafone Idea continues to invest in infrastructure to support new and emerging technologies, delivering innovative solutions to both retail and enterprise clients.

However, at 12:29 pm, the shares of Vodafone Idea were trading 1.98% lower at Rs 6.43 on NSE.

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