The American satellite startup AST Spacemobile yesterday signed a ten year $175 million deal with Saudi Arabia’s telecommunications company STC to use is Bluebird satellite constellation provide its phone-to-satellite service to Saudi Arabia.

AST SpaceMobile will integrate its space-based cellular broadband connectivity with stc’s terrestrial infrastructure to expand mobile coverage across Saudi Arabia, as well as select countries in the Middle East and Africa. The partnership aims to eliminate connectivity gaps by delivering 5G and 4G LTE services directly to standard mobile phones without the need of any specialized software or device support or updates, for consumers, enterprises, and government sectors, ensuring seamless voice and broadband access

Under this agreement, the first in the region for AST SpaceMobile, the company will build three ground gateways in Saudi Arabia and establish a Network Operations Center (NOC) in Riyadh to support the network’s operations and service quality. These key infrastructure developments will be instrumental in providing seamless connectivity across the region.

In many ways, this company is the only one that is succeeding in a direct competition with SpaceX. Both companies are launching satellites designed to act as orbiting cell towers for smart phones. Both are now operational to about the same extent. And both are winning contracts in the U.S. and internationally.

With rocketry however no one else is even close to SpaceX. It is a decade since it introduced reusability in rockets, and still no one else has done it. And as for its Starlink internet satellite constellation, only now, five years after that constellation’s first launch, are other satellite constellations beginning to launch. Its 5,000-plus constellation exceeds all other constellations combined.

AST is not only competing with SpaceX, it might even be winning. For that the company deserves great kudos indeed.