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The binding agreement was signed at World Space Business Week in Paris, a joint announcement by Space42 and Viasat stated. Each company will initially commit 400 million dollars in equity to Equatys, with Space42 planning an additional 200 million dollars investment in a subsequent funding round that could include third-party participants. Viasat is set to be appointed as the venture’s prime technology contractor once Equatys is formally established, according to the release. The total equity from the co-founders could reach 1 billion dollars.
Equatys will function as a shared space and ground infrastructure platform designed to provide direct-to-device connectivity for standard smartphones and Internet of Things devices. The platform integrates satellite and terrestrial networks through non-terrestrial network technology compliant with 3GPP standards, the companies reported. This setup aims to deliver voice, text and data services in remote areas or coverage gaps where traditional mobile networks are unavailable. It will operate as a neutral host supporting multiple mobile network operators.
Industry projections included in the announcement place the global direct-to-device satellite connectivity market at between 30 billion and 70 billion dollars by 2040. The venture plans to deploy a scalable constellation that could encompass up to 2,800 satellites in multiple orbital planes and altitude layers to support over 100 MHz of harmonized mobile satellite spectrum across more than 160 markets. Commercial operations are targeted to begin within three years of the company’s formation.
The latest agreement advances an initial memorandum of understanding signed by the parties in March 2025 that focused on exploring shared non-terrestrial network infrastructure, Viasat noted in the statement. Space42, formed in 2024 from the combination of satellite operator Yahsat and geospatial analytics firm Bayanat, brings regional expertise and AI capabilities to the partnership. Viasat contributes its extensive experience in satellite communications and secure networks developed over several decades.
In the joint statement, Space42 managing director Karim Sabbagh said, “Equatys is establishing an industry-first tower company model that can deliver the lowest unit cost of satellite capacity, while preserving each partner’s spectrum rights and sovereign interests.” Viasat chairman and chief executive Mark Dankberg added, “Equatys will uniquely make possible a shared multi-orbit network of scale with standards-based open architecture to address the significant D2D and next-generation MSS market opportunity.” The partners have already initiated discussions with operators including e& in the UAE and Telkomsat in Indonesia to explore service integration.
The funding structure for Equatys will combine the founders’ equity with additional third-party equity and debt financing as the project progresses, the announcement detailed. This approach is intended to support the development of the initial tranche of satellites immediately upon the venture’s launch. Equatys represents a collaborative model that pools spectrum resources from both companies for enhanced efficiency.
