14 September 2026
UAE-based Space42 and California-based Viasat signed a binding agreement on Monday 14 September 2026 to establish Equatys, a shared satellite and ground network that will connect ordinary smartphones and IoT devices directly to satellites where mobile networks do not reach. The founders will commit up to USD 1 billion (about AED 3.67 billion) in combined equity: USD 400 million each when the company is formed, plus a further USD 200 million from Space42 in a later round open to outside investors. Space42 managing director Karim Sabbagh told The National that services are expected to be available from 2029. The agreement was signed at World Space Business Week in Paris, and the formation of Equatys still depends on closing conditions, including regulatory approvals.
What Space42 and Viasat signed in Paris
The document formally establishes Equatys, the venture the two companies first announced in September 2025. According to their joint release, it fixes three points.
- Capital. Combined equity commitments of up to USD 1 billion from Space42 and Viasat as the initial co-founders.
- Funding step-up. A second agreement, signed at the same time, increases joint funding to speed up development of the initial satellite constellation.
- Contractor. Viasat is expected to be appointed prime technology contractor when Equatys is formed, and the initial tranche of the constellation is to be awarded at that stage.
The formation of the venture, the procurement of the constellation and the definitive agreements remain subject to customary closing conditions, including regulatory approvals and the appointment of Viasat as prime technology contractor. The release does not disclose the final ownership split, the number of satellites in the first tranche or launch dates.
How the USD 1 billion is structured
| Contribution | Amount | When |
|---|---|---|
| Space42, initial equity | USD 400 million (about AED 1.47 billion) | On formation of Equatys |
| Viasat, initial equity | USD 400 million (about AED 1.47 billion) | On formation of Equatys |
| Space42, additional equity | USD 200 million (about AED 735 million) | With a future equity round open to third-party investors |
| Total founders’ equity | Up to USD 1 billion (about AED 3.67 billion) | Space42 up to USD 600 million, Viasat USD 400 million |
Founders’ equity is the first layer. Equatys expects to add third-party equity and debt, with phased equity offerings for strategic and financial partners as the system grows. Operators that use the network will not be required to invest in it.
How Equatys will work: a tower company in orbit
The model comes from the mobile tower business on the ground, where one company owns the masts and several operators share them. In Equatys the shared asset is a constellation of satellites with its ground infrastructure. Each participating operator keeps its own spectrum licences, customers and commercial relationships, while the cost of the satellites is spread across all users. The platform is open, so additional spectrum licensees and satellite operators can join.
- Who it serves. Global, regional and national operators with Mobile Satellite Services (MSS) or Supplemental Coverage from Space (SCS) spectrum.
- What it carries. Voice, text and data for smartphones, IoT devices and other terminals where cellular networks are unavailable or have low density, including coverage gaps in populated metro areas.
- Which standard. 3GPP non-terrestrial network (NTN) standards, first embedded in 3GPP Release 17, which let everyday smartphones and IoT devices connect to satellite networks without specialised hardware.
- How big. The initial constellation is the first phase of an architecture designed to scale to 2,800 satellites across 60 orbital planes and three altitude layers.
What each founder brings
Space42 was formed in 2024 through the merger of Yahsat and Bayanat, is listed on the Abu Dhabi Securities Exchange and names G42, Mubadala and IHC among its major shareholders. It holds coordinated L-band spectrum rights across more than 160 markets. Viasat, listed on Nasdaq, completed its acquisition of Inmarsat in May 2023 and holds coordinated MSS spectrum rights in the L-band globally and in the S-band in Europe. Together the founders have commercial agreements with more than 400 mobile operators and access to over 100 MHz of globally coordinated MSS spectrum.
From studies to services: the timeline
- March 2025. Space42 and Viasat sign a memorandum of understanding and start funded technical and commercial studies of shared non-terrestrial network infrastructure.
- 15 September 2025. In Paris the companies announce their intention to form Equatys, with commercial rollout then targeted within three years.
- 14 September 2026. Binding agreement signed at World Space Business Week in Paris, with up to USD 1 billion in equity commitments.
- Next step. Closing conditions and regulatory approvals, formation of the company, appointment of Viasat as prime technology contractor and award of the initial tranche.
- 2029. Services expected to be available, according to Karim Sabbagh.
Sabbagh told The National that the work has moved into a “fast development and manufacturing mode” and that Equatys is meant to complement terrestrial networks and the business model of mobile operators. Mark Dankberg, Chairman and CEO of Viasat, said that finalising the formation of Equatys reflects the partners’ confidence in the strategic value and long-term financial merits of the venture. The founders cite projections that the global direct-to-device satellite market will reach USD 30-70 billion (about AED 110-257 billion) by 2040.
Where Equatys fits in the UAE space sector
The agreement lands in an active period for the UAE space and satellite market. On 28 August 2026 the Telecommunications and Digital Government Regulatory Authority (TDRA) granted Starlink a 10-year licence, as described in our article on the Starlink licence in the UAE. The UAE Space Agency has given space sector operators 90 days from 27 July 2026 to obtain licences under Federal Decree-Law No. 46 of 2023, see our note on space sector licensing. Space42 reported 15% revenue growth in the first half of 2026, covered in our article on its ADX share buyback approval.
What this means for businesses in the UAE
Nothing changes procedurally today. No tariff, licence requirement or consumer service was introduced. Equatys is designed as infrastructure for licensed operators, not as a service sold to end users, so a company in the UAE would reach it through a mobile or satellite operator that uses the platform, and only once services start.
The relevance is highest for businesses whose people or equipment work outside reliable coverage: transport and logistics fleets, marine and offshore operations, energy and utility sites, construction in remote areas, and IoT deployments such as asset tracking and remote monitoring. Because the model relies on operators and standard devices, these users would not need separate satellite terminals. Coverage, availability and pricing in the UAE will depend on the operators that join the platform, and the September 2026 announcement did not name them.
For companies that want to work in the sector itself, as suppliers, integrators, IoT solution providers or ground segment contractors, the entry point is regulatory. Telecommunications services in the UAE are regulated by the TDRA, space activities by the UAE Space Agency, and the activities on a trade licence must match the scope of work. These choices are made at company registration. Our guide to company formation in the UAE explains the difference between mainland and free zone structures and the documents each requires.
Checklist for companies that depend on connectivity outside coverage
- Map where teams, vehicles, vessels or devices lose mobile signal today, and what the gaps cost in downtime or safety.
- Ask your mobile operator whether it plans satellite direct-to-device services, for which devices and from when.
- When buying IoT hardware with a long service life, check whether it supports 3GPP NTN standards.
- If you plan to supply the sector, confirm that licence activities cover telecommunications, IoT or space-related work and whether a TDRA or UAE Space Agency authorisation applies.
- Keep an active UAE corporate bank account and visa capacity for engineering staff before bidding for contracts.
How Atlant Capital can help
We handle the procedural side of working in this market. Through our company setup service we register companies on the mainland and in the free zones, selecting activities for telecommunications, IoT and technology work that match the contracts a business intends to pursue. We arrange work visas and residence permits for owners and engineers and support corporate bank account opening. Sector authorisations are granted by the TDRA and the UAE Space Agency to the applicant. We are not affiliated with Space42, Viasat or Equatys.
Conclusion
Equatys has moved from intention to a binding agreement: up to USD 1 billion in founders’ equity, Viasat as the expected prime technology contractor, an architecture that can grow to 2,800 satellites and services expected from 2029. The venture still needs regulatory approvals and definitive agreements before it is formed. For UAE businesses nothing changes today, and when the network is live, coverage would come through licensed operators on standard devices. Companies that plan to supply the sector can prepare now with a licence, visas and banking that match the work.
Source: The National, Space42 and Viasat press release.
FAQ
What is Equatys?
Equatys is a shared satellite and ground infrastructure platform co-founded by UAE-based Space42 and US company Viasat. It is designed to connect smartphones, IoT devices and other terminals directly to satellites, so that licensed operators can offer voice, text and data where mobile networks do not reach. It follows a tower company model: operators share the satellites while keeping their own spectrum, customers and commercial relationships.
How much are Space42 and Viasat investing in Equatys?
The founders will commit up to USD 1 billion (about AED 3.67 billion) in combined equity. Space42 and Viasat will each contribute USD 400 million when the company is formed, and Space42 is expected to add USD 200 million in a future funding round open to third-party investors. Further funding is expected from outside equity and debt.
When will Equatys services start?
Space42 managing director Karim Sabbagh told The National that services are expected to be available from 2029. The binding agreement was signed on 14 September 2026, but the formation of the company, the constellation procurement and the definitive agreements still depend on closing conditions, including regulatory approvals.
Will an ordinary smartphone work with Equatys satellites?
Equatys is built on 3GPP non-terrestrial network standards, first embedded in Release 17, which are designed to let everyday smartphones and IoT devices connect to satellite networks without specialised hardware. End users would get access through a mobile or satellite operator that uses the platform, and the September 2026 announcement did not name the operators that will offer the service.
