The joint venture, named SatCo and first announced in March, aims to "further strengthen Europe's digital sovereignty", the two companies said in a statement.
The high-speed satellite connectivity market is currently dominated by Elon Musk's Starlink internet system.
Technology provided by Vodafone and AST will provide mobile services direct from satellites to network providers and "benefit all European citizens, businesses and public sector organisations", the statement said.
The venture aims to ensure "ubiquitous mobile broadband in underserved areas and support emergency services and disaster relief agencies," it added.
A commercial launch of the service is planned for 2026.
ajb/bcp/ach
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