Telecom giant AT&T has struck a deal with satellite provider AST SpaceMobile to deliver a space-based broadband network direct to cell phones, the companies said on Wednesday.

AST SpaceMobile's shares shot up nearly 33.5% in extended trading.

The Texas-based company plans to dispatch five satellites from Cape Canaveral into low-Earth orbit this summer, aiming to start commercial service.

AT&T head of network Chris Sambar will join AST SpaceMobile's board as part of the agreement.

The companies have been working together since 2018 under a memorandum of understanding.

  - Reuters