Abu dhabi: Space42, a UAE-based AI-powered SpaceTech company, and Viasat, Inc., a global leader in satellite and secure communications, have announced the signing of a binding agreement to co-found Equatys. This announcement was made at the World Space Business Week in Paris. Equatys is set to be a shared space and ground infrastructure platform aimed at extending mobile coverage, specifically targeting areas where terrestrial networks fall short, including gaps in populated metro regions. Space42 and Viasat have committed to an initial equity contribution of up to US$1 billion to establish this new venture.
According to Emirates News Agency, the development of Equatys’ initial constellation is fast-tracked by the agreement to enhance joint funding efforts. Viasat is poised to take on the role of the prime technology contractor upon Equatys’ official formation. The demand for satellite-enabled mobile connectivity is on the rise globally, with the 3GPP NTN standards enabling regular smartphones and connected devices to access satellite networks. This development is expected to significantly broaden the Direct-to-Device (D2D) and advanced Mobile Satellite Services (MSS) market in the coming decades.
Viasat and Space42 leverage their extensive global reach, boasting commercial relationships with over 400 mobile operators worldwide and access to the largest amount of globally coordinated MSS spectrum available for D2D deployment. This collaboration offers a scalable foundation for growth. Equatys is designed to connect smartphones, IoT devices, and other devices directly to satellites, allowing mobile operators to offer voice, text, and data services where traditional cellular networks are unavailable or have low density.
The business model for Equatys is based on a Tower Company approach, which has proven effective in the terrestrial mobile industry by allowing operators to share standardized infrastructure. Equatys aims to provide a neutral, shared infrastructure layer, enabling ecosystem participants to reduce capital costs, accelerate deployment, increase service availability, and maintain independence. This model allows multiple operators to use the same platform while retaining their spectrum rights, customer base, and commercial relationships.
Equatys is designed to accommodate additional spectrum licensees and satellite operators, promoting spectrum aggregation, coordination, and cooperation. The initial constellation is part of a broader architecture that plans to scale up to 2,800 satellites, facilitating growth without redesign as demand increases. Funding for Equatys is expected to come from a mix of founders’ equity, third-party equity, and debt financing, offering infrastructure-grade returns and allowing for phased equity offerings as the system scales.
Space42 and Viasat each bring substantial assets to Equatys. Space42 holds coordinated L-band spectrum rights across more than 160 markets and extensive mobile operator relationships. Viasat holds coordinated MSS spectrum rights globally, with a significant presence in Europe. Together, they hold commercial agreements with over 400 mobile operators worldwide and access to over 100 MHz of globally coordinated MSS spectrum for advanced services.
Karim Michel Sabbagh, Managing Director of Space42, stated that the agreement signifies a new approach to building satellite infrastructure, emphasizing shared, interoperable, and standards-based systems designed for extensive device connectivity. Mark Dankberg, CEO of Viasat, highlighted the strategic value and financial potential of Equatys, emphasizing its role in supporting the growing non-terrestrial market for D2D NTN and advanced MSS.
The market for global D2D satellite connectivity is projected to reach US$30-70 billion by 2040, driven by the integration of NTN support into 3GPP Release 17. This integration allows everyday smartphones and IoT devices to connect to satellite networks without specialized hardware.
Space42 and Viasat have committed to an initial equity contribution of US$400 million each, with Space42 planning an additional US$200 million investment in a future funding round. The formation of Equatys, along with constellation procurement and definitive agreements, remains subject to customary regulatory approvals and the appointment of Viasat as the prime technology contractor. Further updates will be provided as Equatys progresses.