UAE-based Space42 and U.S. satellite communications company Viasat have agreed to establish Equatys, a shared satellite and ground infrastructure platform aimed at expanding mobile coverage in areas terrestrial networks cannot reach.
The companies announced the agreement at World Space Business Week in Paris, saying they would commit up to $1 billion in initial equity to the venture upon its formation.
Space42 and Viasat will each initially contribute $400 million, while Space42 is expected to provide an additional $200 million in a future funding round open to third-party investors, taking total commitments from the two founders to as much as $1 billion.
Viasat is expected to become Equatys’ prime technology contractor as the companies accelerate development of the initial satellite constellation.
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, offering voice, text and data services where terrestrial networks are unavailable or have limited coverage.
The platform is based on a “Tower Company” model used in the terrestrial mobile industry, under which operators share infrastructure while retaining their spectrum rights, customers and commercial relationships.
The companies said the model could reduce capital requirements, speed deployment and increase service availability by avoiding duplication of infrastructure.
Equatys is designed to be open to additional spectrum licensees and satellite operators. Its architecture is planned to scale to as many as 2,800 satellites across 60 orbital planes and three altitude layers as demand grows.
The venture comes as satellite-enabled direct-to-device connectivity gains momentum following the integration of non-terrestrial network standards into 3GPP mobile specifications. The companies said the global direct-to-device satellite connectivity market could reach $30 billion-$70 billion by 2040.
Space42 and Viasat have commercial agreements with more than 400 mobile operators globally and access to more than 100 MHz of globally coordinated mobile satellite service spectrum for direct-to-device and advanced mobile satellite services.
Space42 holds coordinated L-band spectrum rights across more than 160 markets, while Viasat holds coordinated mobile satellite spectrum rights in the L-band 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 and interoperable infrastructure designed for billions of devices.
Viasat Chairman and Chief Executive Mark Dankberg said the venture would create a new infrastructure category for global direct-to-device and advanced mobile satellite connectivity, supported by spectrum assets and a shared infrastructure model.
The companies said funding for Equatys would come from founders’ equity, third-party equity and debt financing. Additional licensees using the system would not be required to invest in the infrastructure.
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.
