Development of the initial constellation accelerates with the simultaneous signing of an agreement to step-up joint funding.
Space42 and Viasat have formally signed an agreement at World Space Business Week in Paris to establish Equatys, a joint space and ground infrastructure platform aimed at expanding satellite-enabled mobile connectivity across global coverage gaps.
The two founding companies plan to make initial equity contributions totaling up to $1 billion to accelerate the venture’s initial constellation, with an agreement in place to step up joint funding. Upon formal establishment of the entity, Viasat is expected to serve as the primary technology contractor.
Business Model & Industry Architecture
Equatys operates on a tower company model adapted from terrestrial telecommunications, offering neutral, shared non-terrestrial network (NTN) satellite and ground infrastructure to third-party operators.
- Shared Infrastructure: Mobile operators can extend direct-to-device messaging, voice, and data services without needing to build duplicate satellite fleets or force users onto specialized hardware.
- Preserved Spectrum & Independence: Participating telecommunications providers retain their own spectrum rights, customer bases, and commercial structures while leveraging the shared orbital layer.
- Standards-Based Integration: Built around 3GPP satellite standards, the network enables conventional mass-market smartphones and Internet of Things devices to connect directly to orbital capacity.
- Open Aggregation Platform: The framework allows additional spectrum licensees and satellite operators to join, facilitating broader spectrum coordination across regional markets.
Satellite Constellation & Technical Reach
The initial satellite deployment serves as the foundation for a multi-layered, highly scalable architecture designed to grow alongside market demand. The target system can eventually scale up to 2,800 satellites distributed across 60 orbital planes and three distinct altitude layers.
Together, Space42 and Viasat bring over 100MHz of globally coordinated mobile satellite services spectrum, combining Space42’s L-band rights across more than 160 markets with Viasat’s global L-band and European S-band assets. The partnership leverages pre-existing commercial relationships with more than 400 mobile network operators worldwide.
Capital Structure & Financial Commitments
Funding for Equatys will combine founder equity, third-party capital, and debt financing to deliver infrastructure-style financial returns alongside long-term capital appreciation.
- Initial Founder Contributions: Space42 and Viasat are each slated to contribute $400 million at formation.
- Secondary Funding Round: Space42 is set to provide an additional $200 million in a subsequent equity round, which will also open the venture to external strategic and financial investors.
- No Capital Barrier for MNOs: External mobile network operators utilizing the Equatys platform can access network capacity without being required to make equity investments in the system.
Industry forecasts cited by the founding companies project the global direct-to-device satellite connectivity market to reach between $30 billion and $70 billion by 2040. Final formation, constellation procurement, and execution of definitive contracts remain subject to standard closing conditions and regulatory approvals.
