Verizon’s 5G Flop Gets a Space Upgrade… Schulman Bets on AST’s Satellite Network to End Dead Zones

Nervously looks at board members: “Okay, I know we spent a gazillion dollars chasing the lost treasure that was 5G and have roughly nothing to show for it… but what if (hear me out) we launch cell service from space?” -New Verizon CEO Dan Schulman, probably.

Our long national nightmare of “No Service” in places that absolutely should have service might finally be over.

Cue the infomercial voice: “Tired of losing signal in the middle of nowhere? Sick of watching your GPS give up halfway through rural Ohio? Well, say goodbye to dropped calls and hello to marital bliss… because Verizon’s new plan might actually save your sanity… and your marriage!”

You heard that right, Verizon inked a deal with AST SpaceMobile to beam cell service from space starting next year. Yup, you read that right. No more walking around your yard like a Wi-Fi-deprived raccoon waving your phone around to get a bar.

According to AST, the deal will let Verizon users connect “when needed,” meaning satellites will fill in the dead zones that Verizon’s towers can’t reach. Think of it as Starlink, but for people who still have a carrier bill.

(Source: CNBC)

AST’s CEO Abel Avellan said the goal is to deliver “space-based broadband coverage across the continental United States,” using Verizon’s premium 850 MHz low-band spectrum. So yes, the same company that once swore 5G would be the next internet revolution is now basically saying, “Alright fine, let’s just shoot the signal into orbit and see what happens.”

That said, investors seem to buy the hype. AST SpaceMobile jumped more than 15%, adding to an already absurd +250% run this year. Meanwhile, Verizon did what big telcos do… barely moved (+0.2%) and went back to sleep.

And in case you missed it, this all came two days after Verizon pulled a surprise move… hiring former PayPal CEO Dan Schulman to replace Hans Vestberg. Yes, the same guy who once tried to make crypto payments mainstream is now running a cell tower empire. If that’s not poetic irony, I don’t know what is.

Schulman’s first week on the job? Partner with a space startup, promise signal from the stratosphere, and tell customers “you’ll never drop a call again.” Bold strategy, Cotton.

Still, AST’s got receipts. In recent tests, the company pulled off two-way video calls and messaging using regular smartphones (no Musk-style dongles required) through its BlueBird satellite network. If that scales, AST could end up making traditional coverage maps look like cave paintings.

For now, consider this the first major salvo in the “space-to-phone” wars. SpaceX’s Starlink has been testing direct-to-cell service, Lynk has quietly connected texts from orbit, and Apple’s only dipped its toes in with emergency SOS features… but Verizon’s deal with AST marks the first big commercial push to actually bring full cell coverage down from space.

At the time of publishing this article, Stocks.News holds positions in Verizon and Apple as mentioned in the article.