New Delhi, Oct. 8 -- Verizon Communications Inc. is set to transform its cellular offering in the United States following an agreement with AST SpaceMobile to provide cellular service from space, a service expected to be launched in 2026. This ground-breaking tie-up, which expands on a strategic partnership established earlier in 2024, has significantly boosted investor excitement, particularly for the satellite firm.

Following the announcement, shares of AST SpaceMobile surged by 10% on Wednesday, while Verizon's stock slipped 0.5%.

The core of the deal is the deployment of a low-Earth orbit satellite network, a system engineered to connect with standard, unmodified mobile phones. This technology is designed to eliminate notorious dead...