UAE's Space42 And US Firm Viasat Sign Deal To Establish Equatys In $1 Billion Satellite Push Khaleej Times

(MENAFN- Khaleej Times) The UAE's Space42 and US satellite communications group Viasat have signed a binding agreement to establish Equatys, a shared space and ground infrastructure platform aimed at extending mobile coverage into areas terrestrial networks cannot reach.

The agreement commits the two companies to an initial equity contribution of up to $1 billion as co-founders of the venture.

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It also accelerates development of Equatys' first satellite constellation, with the initial tranche to be awarded once the company is formally established and Viasat is appointed as prime technology contractor.

Equatys is designed to let smartphones, IoT devices and other terminals connect directly to satellites, enabling mobile operators to offer voice, text and data services in areas with poor or no cellular coverage, including gaps in populated metro areas.

The push builds on the growing adoption of 3GPP Non-Terrestrial Network (NTN) standards, which are enabling everyday devices to access satellite networks without specialised hardware. The global direct-to-device (D2D) satellite connectivity market is projected to reach between $30 billion and $70 billion by 2040, driven initially by NTN support embedded in 3GPP Release 17.

Together, Space42 and Viasat hold commercial relationships with more than 400 mobile operators worldwide and access to over 100MHz of globally coordinated Mobile Satellite Services (MSS) spectrum for D2D deployment – described as the largest such spectrum holding available for the purpose.

Tower Company model

Equatys will operate on what the companies describe as a“Tower Company” model, mirroring the approach that helped the terrestrial mobile industry scale efficiently by sharing infrastructure rather than duplicating it. The model is intended to let multiple satellite operators and spectrum licensees use the same platform while retaining their own licensing rights, customers and commercial relationships.

The initial constellation marks the first phase of an architecture designed to scale to 2,800 satellites across 60 orbital planes and three altitude layers, allowing the network to grow in density without requiring redesign.

Equity structure

Space42 and Viasat will each commit an initial $400 million in equity once Equatys is formed.

Space42 is expected to add a further $200 million tied to a future funding round open to third-party investors, taking the two founders' combined commitment to up to $1 billion. Funding is expected to eventually draw on a mix of founders' equity, third-party equity and debt financing.

Additional licensees using the system would not be required to invest in it in order to access it, the companies said.

“For the first time, the satellite industry is building infrastructure the way the mobile industry thinks: shared, interoperable, standards-based, and designed for billions of devices rather than millions of subscribers,” said Karim Michel Sabbagh, Managing Director of Space42.

Mark Dankberg, chairman and CEO of Viasat, said the venture reflected confidence in the long-term financial merits of shared, neutral infrastructure for a fast-growing non-terrestrial connectivity market, and that Equatys was designed to deliver "meaningful growth opportunities with attractive returns for investors and partners."

Space42 brings coordinated L-band spectrum rights across more than 160 markets to the venture, while Viasat holds coordinated MSS spectrum rights in the L-band globally and the S-band in Europe.

The formation of Equatys, along with constellation procurement and definitive agreements, remains subject to customary closing conditions, including regulatory approvals and Viasat's formal appointment as prime technology contractor. The companies said further updates would follow as those conditions are met.

The move follows earlier steps in the partnership: Space42 and Viasat first announced funded technical and commercial studies into shared non-terrestrial network infrastructure in March 2025, followed by an announcement of their intention to form Equatys in September 2025.

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