Space42 and Viasat Sign Agreement with Contributions of Up to $1 Billion to Establish Equatys
Key Facts
The UAE’s Space42 and Viasat signed a binding agreement to establish Equatys, with a commitment to joint capital contributions of up to $1 billion, in a move aimed at building shared space infrastructure for direct-to-device connectivity services. The agreement was announced on September 14, 2026, following phases of technical and commercial studies by the two companies. Space42 Managing Director Karim Michel Sabbagh said the platform is “taking off” with the agreement, describing the project as building infrastructure that is “shared, interoperable and standards-based.” The agreement sets a capital framework for the project, but does not mean that formation or constellation deployment has been completed. The steps remain subject to closing conditions and regulatory approvals.
According to Space42, each founder plans to contribute $400 million when Equatys is established, with Space42 expected to add $200 million in a future funding round open to third-party investors. With this addition, the founders’ combined contributions could reach $1 billion. The company ties these figures to capital contributions, not full immediate funding upon signing the agreement; part of the amount depends on a later round. The structure sets an equal initial commitment by Space42 and Viasat, alongside an expected additional funding path from Space42. The announcement does not specify a confirmed amount for contributions from outside investors.
Equatys is designed as a neutral layer combining satellite infrastructure and ground components, allowing telecom operators to share the platform while retaining their rights to spectrum licenses, customers and commercial relationships. The companies say this model enables the same infrastructure to be used by multiple operators, rather than requiring each party to build a separate system. The platform aims to connect smartphones, Internet of Things devices and others directly to satellites. Through it, telecom operators can offer voice, messaging and data when cellular network coverage is absent or sparse. The targeted coverage gaps include populated areas within major cities, where terrestrial networks do not reach users.
Space42 says the two companies have commercial agreements with more than 400 mobile operators, as well as technical capabilities and access to more than 100 megahertz of globally harmonized spectrum for mobile satellite services and direct-to-device connectivity. These figures, as stated in the September announcement, provide Equatys with a commercial and spectrum base for engaging operators. The infrastructure’s long-term vision includes expansion to 2,800 satellites across 60 orbital planes and three altitude layers. The company presents this design as scalable, not as a description of a completed or deployed constellation. The scale of the orbital distribution and available spectrum reflects the scope of the infrastructure the project targets, while its implementation remains dependent on completing formation and procurement conditions.
The binding agreement followed a preparatory process that began in March 2025, when the companies started funded technical and commercial studies, then announced in September 2025 their intention to form Equatys. The agreement signed in September 2026 follows those phases, moving the project to defined capital commitments and a binding formation agreement. The companies estimate that the global direct-to-device satellite connectivity market could reach between $30 billion and $70 billion by 2040. This is a forward-looking market estimate announced by the companies, not projected revenue for Equatys or a confirmed project value. The estimates place the expansion of satellite connectivity services within a broader market the platform aims to serve.
In a subsequent update, Space42, Viasat and Terrestar Solutions signed a memorandum of understanding on October 28, 2026, to develop an open interoperability framework linking Equatys with the planned Canadian CaStar constellation. The companies say their joint work targets an open, standards-based framework for interoperability. Viasat says it aims to begin Equatys services during calendar year 2029. The project’s formation, constellation procurement and final agreements remain subject to customary closing conditions, including regulatory approvals and Viasat’s appointment as prime technical contractor. The company expects Viasat to be appointed to that role after Equatys is formed, making formation and completion of approvals necessary steps before this arrangement is implemented.
Viasat shares closed at $75.24 on November 3, 2026, after trading between $74.36 and $77.62 during the session, according to the historical prices table. These prices show the stock’s performance in the dated session, after the announcement of the memorandum of understanding with Terrestar on October 28. The price data in the available evidence do not link this move to the Equatys announcement or the partnership update. The November 3 close remains the latest dated market figure available for the stock. The project’s next developments depend on completing formation conditions and approvals, while Viasat’s stated target is to begin services in 2029.