Space42 and Viasat Launch Joint Venture for Shared Satellite Infrastructure

Space42 and Viasat have signed a binding agreement to form Equatys, a new joint venture dedicated to building shared satellite and ground infrastructure. The two companies plan to invest up to $1 billion in combined equity, with each contributing $400 million at the start and the potential for an additional $200 million from Space42 through future financing rounds. This move signals a shift toward a more collaborative approach in a sector that has traditionally been fragmented and capital-intensive.

The primary goal of Equatys is to extend mobile connectivity to remote areas where building traditional terrestrial networks is either impossible or economically unviable. By leveraging 3GPP non-terrestrial network standards, the platform is designed to allow conventional smartphones, IoT devices, and other terminals to connect directly to satellites for voice, text, and data services. This eliminates the need for users to purchase specialized satellite phones, making global coverage accessible through devices they already own.

Shared Infrastructure Model Reduces Costs

Equatys adopts a business model similar to cellular tower companies, where multiple operators share a single physical infrastructure. Instead of every mobile operator building its own expensive satellite constellation, they can access a neutral, shared network while retaining their individual spectrum rights and customer relationships. Viasat will serve as the prime technology contractor, while Space42 brings its global spectrum portfolio and operator network.

This structure is intended to lower capital barriers and accelerate deployment. By pooling resources, the companies aim to improve spectrum efficiency and network availability. The platform will be open to other satellite operators and spectrum licensees, fostering a competitive but collaborative ecosystem. However, this model requires strict neutrality to ensure that no single operator gains an unfair advantage, a challenge that will require careful regulatory oversight and technical governance.

Scaling Toward Thousands of Satellites

The initial constellation is just the first phase of a larger architectural vision. The system is designed to scale up to 2,800 satellites across 60 orbital planes and three different altitude layers. This massive expansion would require significant ongoing investment and coordination. The companies estimate that the global direct-to-device market could reach between $30 billion and $70 billion by 2040, providing the financial justification for such an ambitious rollout.

Supporting this expansion is a robust spectrum foundation. Space42 holds coordinated L-band spectrum rights in over 160 markets, while Viasat possesses global L-band and European S-band rights. Together, they control over 100 MHz of globally coordinated Mobile Satellite Services spectrum. This extensive frequency access is critical for ensuring that the network can handle high traffic volumes and interoperate with existing mobile standards, though it also creates a significant dependency on continued regulatory approval.

Regulatory Hurdles and Market Risks

Despite the strategic advantages, the formation of Equatys remains subject to customary closing conditions and regulatory approvals. Securing these approvals across multiple jurisdictions is a complex process that can take years. Furthermore, the success of the venture depends on the willingness of mobile operators to adopt shared infrastructure, a shift from the traditional model of vertical integration. If operators remain hesitant to rely on a third-party neutral platform, the scale and efficiency benefits promised by the tower-like model may not materialize as expected.

The competitive landscape is also evolving rapidly, with other companies investing heavily in direct-to-device capabilities. Equatys must demonstrate clear technical and economic superiority to attract the more than 400 mobile operators with which its partners already have agreements. The ability to deliver reliable, low-latency connectivity that meets consumer expectations will be the ultimate test of this joint venture's viability in a crowded and fast-moving market.