Space42 and Viasat commit up to $1B to launch satellite venture Equatys
What's the deal? Space42Dealroom has a profile for this one. Try Dealroom → and Viasat have signed a binding agreement to co-found EquatysDealroom has a profile for this one. Try Dealroom →, a satellite connectivity venture with total commitments of as much as $1 billion. Each company will initially contribute $400 million, with Space42 expected to add a further $200 million in a future funding round open to third-party investors.
What's the endgame? Equatys will provide a shared layer of satellites and ground infrastructure that mobile operators can use to connect smartphones, internet-of-things devices, and other terminals directly to satellite networks. The service targets areas where terrestrial networks are unavailable or offer limited coverage, delivering voice, text, and data.
The venture uses a "Tower Company" model borrowed from the terrestrial mobile industry, under which operators share infrastructure while keeping their spectrum rights, customers, and commercial relationships. The companies said this could cut capital requirements, speed deployment, and widen availability by avoiding duplicate infrastructure.
The product: Viasat is expected to become Equatys' prime technology contractor as the partners accelerate development of the initial satellite constellation. The architecture is designed to be open to additional spectrum licensees and satellite operators, and is planned to scale to as many as 2,800 satellites across 60 orbital planes and three altitude layers as demand grows.
Why now? The venture arrives as satellite-enabled direct-to-device connectivity gains momentum following the integration of non-terrestrial network standards into 3GPP mobile specifications. The companies estimate the global direct-to-device satellite market could reach $30 billion to $70 billion by 2040.
Together, Space42 and Viasat hold commercial agreements with more than 400 mobile operators globally and access to over 100MHz of coordinated mobile satellite service spectrum. Space42 holds coordinated L-band rights across more than 160 markets, while Viasat holds coordinated L-band rights globally and S-band in Europe.
"With the signing of this agreement, Equatys takes off," Space42 Managing Director Karim Michel Sabbagh said, adding that the venture would create shared, interoperable infrastructure for billions of devices. Funding will come from founders' equity, third-party equity, and debt financing, with additional licensees not required to invest in the infrastructure.
What could go wrong? The formation of Equatys, satellite procurement, and related definitive agreements remain subject to customary closing conditions, including regulatory approvals and the appointment of Viasat as prime technology contractor.
The signal: The deal signals a shift toward shared, neutral-host satellite infrastructure as direct-to-device connectivity moves from novelty to standard. By pooling spectrum and assets rather than duplicating networks, Space42 and Viasat are positioning Equatys as a wholesale layer beneath the mobile operators it aims to serve.
Read more: trendsmena.com
Image credit: NASA Goddard Photo and Video
