AST SpaceMobile, Inc. (NASDAQ: ASTS) shares climbed 3.5% Monday morning after the company announced a major step forward in its European satellite broadband expansion plans.

Deutsche Telekom, Orange, Telefónica and Vodafone have signed a Letter of Intent to explore a potential joint bid for Mobile Satellite Services spectrum across Europe.

The four operators represent Europe’s largest mobile network companies, and their coordination signals growing institutional support for space-based cellular connectivity on the continent.

AST SpaceMobile’s Chief Commercial Officer Wayne Thorsen said, “Europe’s mobile network operators are taking an important step toward extending connectivity to every subscriber, wherever they live, work and travel.”

Thorsen added, “Our role is to support our partners with the satellite technology, spectrum capabilities and ground infrastructure needed to deliver cellular broadband directly to the phones people already use.”

He described the initiative as building “a third layer of connectivity that expands coverage and strengthens the resilience of Europe’s mobile networks.”

The Letter of Intent represents an exploratory agreement rather than a completed spectrum acquisition or binding commitment to deploy commercial services.

Any joint spectrum bid and subsequent deployment would remain subject to applicable regulatory requirements and authorizations before services could be offered in individual markets.

AST SpaceMobile is simultaneously developing dedicated European ground infrastructure through its existing European joint venture, Satellite Connect Europe, to link its BlueBird satellite constellation with mobile operators’ core networks.

The company said this infrastructure is designed to keep data handling and service management within European jurisdiction, addressing digital sovereignty concerns that have gained prominence across the continent.

AST SpaceMobile identified Europe as a market with over 500 million mobile subscribers, representing a substantial commercial opportunity for satellite-extended mobile coverage.

The company’s BlueBird satellites are described as the largest communication satellites ever deployed in low Earth orbit and connect directly to standard, unmodified smartphones without requiring specialized equipment.

AST SpaceMobile reported demonstrated peak download speeds of 98.9 megabits per second, with next-generation satellites expected to deliver peak data rates approaching 200 Mbps.

The company’s satellite technology can tune across approximately 1,150 MHz of low- and mid-band spectrum used by its mobile network operator partners globally, supporting broad compatibility with existing telecommunications infrastructure.

AST SpaceMobile also holds priority rights associated with S-band satellite spectrum, which the company says could be combined with partner spectrum to increase European network coverage and capacity.

The satellite broadband service is designed to extend the reach of existing mobile networks rather than replace them, allowing operators to incorporate satellite coverage into their current service offerings.

Potential applications include rural and remote areas where terrestrial mobile infrastructure does not provide reliable coverage, as well as locations where networks are interrupted or difficult to maintain.

The announcement did not include a specific European commercial launch date, revenue forecasts, or details on spectrum frequencies under consideration for the proposed joint bid.

Investors will be watching closely to see whether the Letter of Intent progresses toward a formal spectrum bid and whether regulatory approvals and network integration milestones follow in the months ahead.