Abu Dhabi-based Space42 and US satellite operator Viasat have committed about $1 billion to Equatys, a joint venture that aims to extend ordinary smartphone connectivity into areas beyond the reach of conventional cellular networks, according to a report by The National on 22 September 2026.
Equatys is expected to begin offering global satellite connectivity services from 2029. The goal is to allow standard mobile devices, without specialised antennas or hardware, to maintain connections in deserts, mountains, offshore areas and other regions where building terrestrial 4G or 5G infrastructure is economically difficult.
The direct-to-device revolution
Direct-to-device (D2D) satellite connectivity represents one of the most significant shifts in the telecommunications industry in decades. Traditionally, satellite phones have required bulky, specialised handsets and expensive service plans, limiting their use to remote workers, mariners, militaries and adventurers.
D2D technology aims to connect the phones people already carry directly to satellites. When a user moves beyond the range of terrestrial towers, the phone can connect to a satellite overhead, enabling messaging, voice calls and, eventually, data services. For consumers, the experience could be seamless; for operators, it could eliminate coverage gaps that have long been uneconomical to fill.
The market opportunity is measured not in the millions of specialised satellite terminals in use today, but in the billions of smartphones worldwide. Even a small fee per user for coverage beyond terrestrial networks could translate into substantial revenue.
A crowded race to orbit
Equatys enters a highly competitive field. SpaceX's Starlink has partnered with mobile operators to offer direct-to-cell services using its satellites. AST SpaceMobile is building a constellation of large satellites designed to connect directly with standard phones. Amazon is developing its own satellite ambitions, and established satellite operators and mobile carriers are exploring various partnerships and technologies.
Each approach involves different trade-offs in satellite size, orbit, spectrum and cost. Spectrum is particularly important: D2D services require access to radio frequencies that phones can use, either through partnerships with mobile operators or through satellite spectrum rights. Space42 and Viasat bring significant spectrum and operating experience through their respective businesses, including legacy mobile-satellite operators such as Viasat's Inmarsat and Space42's Thuraya.
Who is Space42?
Space42 was formed through the combination of Abu Dhabi's satellite operator Yahsat and geospatial analytics company Bayanat, creating a UAE champion spanning satellite communications, Earth observation and data analytics. The company is part of the UAE's broader strategy to build sovereign capabilities in space and advanced technology.
Beyond Equatys, Space42 is building the Foresight Earth-observation constellation, which uses synthetic aperture radar (SAR) satellites. Unlike optical satellites, SAR can image through clouds, smoke and darkness, making it valuable for applications ranging from disaster response and maritime surveillance to agriculture and infrastructure monitoring. Three of the first five Foresight spacecraft were assembled and tested in the UAE, underscoring the country's effort to develop domestic space manufacturing capability rather than relying entirely on foreign suppliers.
Viasat's strategic interest
For Viasat, the joint venture offers a way to participate in the D2D market while sharing the substantial capital required. The company, which acquired Inmarsat in 2023, operates a large portfolio of satellites serving aviation, maritime, government and enterprise customers. Mobile-satellite services have long been part of Inmarsat's business, and D2D represents a natural evolution of that heritage towards mass-market consumer connectivity.
Partnering with Space42 also gives Viasat access to Gulf capital and a strategic partner in a region that has made space a national priority. The UAE has invested heavily in space programmes, from Mars exploration to satellite manufacturing, and has positioned itself as a hub for the regional space economy.
Why 2029?
The 2029 service launch date reflects the time required to design, build, launch and integrate a new satellite system, as well as to secure regulatory approvals and commercial agreements with mobile operators and device makers. D2D systems also depend on standards: the 3GPP standards body, which governs mobile technology, has incorporated non-terrestrial networks into recent releases, making it easier for standard phones to connect to satellites.
The timeline also means Equatys will enter the market after some competitors have already launched services. Its success will depend on offering advantages in coverage, capacity, performance or partnerships that allow it to win customers despite a later start.
The opportunity for emerging markets
For emerging markets, including India, Africa and much of Asia, D2D connectivity could have significant social and economic benefits. Large rural and remote populations remain without reliable mobile coverage, and emergency communications in disaster-prone areas are often disrupted when terrestrial networks fail. Satellite connectivity that works with ordinary phones could improve safety, support digital services and connect communities that remain on the margins of the digital economy.
In India, satellite communications policy has been evolving, with regulators working through spectrum allocation and licensing for satellite broadband services. As D2D technology matures, questions about how satellite and terrestrial networks coexist, and how spectrum is shared, will become increasingly relevant for Indian policymakers and operators.
The business model question
The economics of direct-to-device services are still being worked out. Satellite operators are likely to partner with mobile network operators, who would offer satellite coverage as an add-on or premium feature to their existing subscribers. Revenue could then be shared between the satellite operator and the mobile carrier. Alternative models include wholesale capacity agreements, emergency-service contracts with governments and specialised offerings for industries such as logistics, mining, agriculture and maritime operations.
Early services from competitors have focused on text messaging and emergency connectivity, with voice and data expected to follow as satellite capacity increases. Equatys will need to determine which services to prioritise at launch and how to price them attractively in a market where consumers are accustomed to relatively inexpensive terrestrial mobile plans.
A long-term bet
The $1 billion commitment is substantial, but it is also a fraction of what fully global satellite systems can ultimately cost. Equatys will need to demonstrate technical performance, sign partnerships with mobile operators around the world and build a sustainable business model in a market where competition is intensifying.
Yet the direction of the industry is clear. The boundary between terrestrial mobile networks and space-based connectivity is dissolving. By backing Equatys, Space42 and Viasat are betting that there will be room for multiple players in a market that could eventually reach billions of devices, and that the UAE can be at the centre of one of the next great shifts in global communications.
