Space42, an ADX-listed UAE AI-powered space technology company, and Viasat, the Nasdaq-listed satellite and secure-communications group, signed a binding agreement to co-found Equatys. The deal was unveiled at World Space Business Week in Paris. Each founder will make an initial equity contribution of US$400 million. Space42 is then expected to contribute a further US$200 million in a subsequent round open to third-party investors, bringing total founders’ commitments to up to US$1 billion.
A neutral ‘tower company’ for the orbital layer
Equatys is structured as a neutral shared-infrastructure vehicle — a tower company, but in orbit. It will provide a common layer of satellites and ground systems that mobile and satellite operators can access rather than build alone. As a result, operators retain their customers, spectrum licences and commercial relationships. They simply rent shared capacity across a standardised non-terrestrial network layer.
Viasat is expected to serve as the venture’s prime technology contractor on formation. That role anchors the technical roadmap and vendor ecosystem from the outset. Space42 itself was formed in 2024 through the merger of Bayanat Smart Solutions and Yahsat Space Services, combining satellite communications, geospatial data and AI capabilities into a single ADX-listed entity.
The initial constellation architecture is designed to scale to as many as 2,800 satellites across 60 orbital planes and three altitude layers. This modular design allows coverage to densify as demand grows, with no fundamental redesign required. The system aligns with emerging 3GPP non-terrestrial network standards for direct-to-device connectivity.
What does Equatys mean for investors?
The platform connects standard smartphones and Internet of Things devices directly to satellites. It delivers voice, text and data services where cellular networks are absent or thin. One market analyst put the investment case plainly: ‘Equatys is a capital-light way for mobile operators to buy coverage in orbit instead of building it themselves.’
For institutional investors, the venture offers exposure to three linked themes. Direct-to-device services move beyond specialist hardware to mass-market smartphones and IoT modules, expanding the addressable market significantly. Shared infrastructure economics reduce capital intensity and spread risk — echoing tower and data-centre models that have attracted long-term institutional capital for years. In addition, the Abu Dhabi listing embeds Equatys within the UAE’s broader industrial strategy.
Space42’s major shareholders include G42 Holding, Mubadala Investment Company and International Holding Company. That shareholder structure connects the venture directly to the sovereign and semi-sovereign capital that has driven Abu Dhabi’s space technology ambitions. Formation of Equatys, constellation procurement and definitive agreements remain subject to regulatory approvals and customary closing conditions.
Investors and policymakers should watch three milestones closely: confirmation of initial satellite manufacturing contracts, early anchor tenants among mobile network operators, and any third-party equity placements that will set valuation benchmarks for shared orbital infrastructure.
Quick answers
Space42 and Viasat will each contribute US$400 million in initial equity. Space42 is also expected to provide a further US$200 million in a future round open to third-party investors, bringing total founders’ commitments to up to US$1 billion.
Equatys will operate a shared satellite infrastructure layer — similar to a tower company — enabling mobile operators to offer direct-to-device voice, text and data services on standard smartphones and IoT devices without building their own constellations.
The initial architecture is designed to scale to as many as 2,800 satellites across 60 orbital planes and three altitude layers, aligned with 3GPP non-terrestrial network standards.
