Equatys is pitching a D2D model where satellites are shared infrastructure, like cell towers. Via Satellite archive illustration
Satellite operators Viasat and Space42 are pitching a new way to approach the direct-to-device (D2D) market, based on shared spectrum and treating satellites like shared infrastructure of cell towers. The partners announced a new joint venture called Equatys last week — with an open invitation for others to join.
Equatys is a jointly-owned company formed to build an infrastructure for D2D services using mobile satellite spectrum (MSS). Viasat and Space42 are bringing 100 MHz of coordinated MSS spectrum that is already allocated across more than 160 markets to the venture.
“This is really a story about shared infrastructure and business models that we believe represents a counterpoint to a single, large entity. We think that that will be appealing to many players within the ecosystem and to countries,” Viasat CEO Mark Dankberg said at a media roundtable last week at World Space Business Week
The partners have set the bold goal to be delivering services within three years. It will use a combination of existing in-orbit resources including Thuraya-4 and the Inmarsat (now Viasat) existing MSS satellites — as well as new satellites in Low-Earth Orbit (LEO). New satellites will be owned by Equatys.
The announcement was a bit oblique — there will be a satellite constellation but they are not giving a projected dollar value of investment or even the number of satellites at this point, in favor of emphasizing the shared business model.
With this announcement coming after SpaceX’s $17 billion spectrum buy shaking up its place in the D2D market, Equatys is being pitched as a model where multiple players can participate.
Dankberg has been talking about this shared infrastructure model for some time, and Viasat and Space42 announced an MoU in March of this year, but now it’s starting to take public shape.
The harmonized spectrum is the key differentiator compared to other D2D approaches, giving regional operators a way to use their spectrum and participate in the ecosystem, and for countries to retain sovereignty over their data.
“It’s become evident that having access to satellite spectrum is valuable. Now the two [players] that built satellites are trying to buy spectrum,” Dankberg said in a reference to SpaceX and AST SpaceMobile spectrum buys. “Instead of starting with a constellation and trying to get rights everywhere, [we] start with what the countries want and create a system that they can work with. It needs to be truly equitable and fair.
Space42 Managing Director Karim Michel Sabbagh emphasized that Space42 and Viasat are the founding partners of the venture, but it is being created for a broader ecosystem.
“We want to create an ecosystem that makes it incentivizing for spectrum holders to participate,” Sabbagh said. “They can bring their spectrum, they continue to retain the ownership of the spectrum. [We] are not relinquishing spectrum to Equatys — we’re making [our spectrum] available so that Equatys can put it to use in the most efficient manner.”
Using MSS spectrum is important because it’s already allocated for satellite services and does not require spectrum-sharing agreements with mobile network operators (MNOs). However, a recent report from GSMA found that while 3GPP standards now include several MSS bands, adoption in specific phones remains low and limited to high-end models, which is a roadblock for greater adoption.
“It is the simplest answer to a very complicated problem,” Ali Al Hashemi, CEO of Space Services for Space42. “It is a system where you can aggregate spectrum, you can aggregate infrastructure, you can aggregate service providers and MNOs so they benefit from the system seamlessly.”
“We say that the best move is to do what your competition is not doing — and we are doing that perfectly,” Al Hashemi added.
Dankberg said there is interest from other operators who may want to be customers of Equatys, and other strategic partners and financial investors that are considering joining the joint venture.
It’s also generated interest from MNOs, chip manufacturers, device makers, and automakers because they want business structures that lower their cost of adoption.
“One of the things we’re hearing from all the mobile network operators is, ‘I don’t want to be exclusive, I want standards,’” Dankberg added. “We’re creating an ecosystem where multiple different service providers have access to it. That’s very attractive to them. It’s the same thing for OEMs like automakers who want choice and efficiency.”
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