Space42, Viasat and Terrestar form alliance to build open-standard Starlink alternative

On Wednesday, Canadian satellite operator Terrestar Solutions signed a memorandum of understanding with the UAE’s Space42 and US-based Viasat to link their upcoming orbital networks. The agreement, finalized in Ottawa, establishes a shared technical framework to pool satellite capacity for direct-to-smartphone connectivity. It marks the first formal expansion of Equatys, a joint venture Space42 and Viasat formed in September 2026.[1][2][3]

The alliance aims to build a global alternative to SpaceX’s Starlink, but using a fundamentally different architectural model. Rather than a single company owning the entire stack, the Equatys framework relies on open standards to link distinct national constellations. Participating operators will share resources like power, beams, and gateway access, while retaining full ownership of their physical assets.[1][3][4]

This approach, which the companies call a "sovereign shell," directly addresses a growing regulatory friction point in satellite internet. Under the framework, Terrestar’s planned low-Earth orbit constellation, CaStar, will operate as a sovereign Canadian system. Domestic data will route through Canadian gateways, keeping it under local jurisdiction even as the satellites interoperate with the global network.[2][3][5]

To make the shared infrastructure work, the operators are abandoning proprietary interfaces in favor of standardized protocols. The interoperability layer will be built on 3GPP non-terrestrial network specifications and GSMA roaming frameworks. While the technical alignment sounds promising, seamless handoffs between independently operated satellite constellations moving at orbital speeds remain a complex engineering challenge.[3][4]

The financial commitments behind the initiative are substantial, though the hardware is still years away. Space42 and Viasat backed the initial Equatys venture with up to $1 billion in combined equity commitments, with each pledging $400 million upon formation. Terrestar’s CaStar constellation is projected to cost at least $356 million for its first phase.[1][3]

A multi-tenant orbital tower

Viasat and Space42 have positioned the Equatys model as a shared infrastructure platform that can drive down the unit cost of satellite capacity. By sharing the underlying network architecture, the operators hope to achieve global scale without duplicating hardware. The planned Equatys system is designed to support direct-to-device and advanced mobile satellite services worldwide.[2][3][4]

The network will initially operate in harmonized L- and S-band mobile satellite service spectrum. The consortium claims the ability to utilize allocated spectrum to deliver ubiquitous mobility. However, delivering broadband-level speeds directly to unmodified smartphones requires massive power, and the group has not yet detailed the specific throughput users can expect.[3]

The agreement carries significant diplomatic weight, reflecting the strategic importance of sovereign space infrastructure. The memorandum was signed on the sidelines of Abu Dhabi Crown Prince Sheikh Khaled bin Mohamed bin Zayed Al Nahyan’s official visit to Canada. The Crown Prince attended talks with Canadian Prime Minister Mark Carney, underscoring the state-level backing for the technology partnership.[1][3]

Challenging the closed ecosystem

Starlink currently dominates the low-Earth orbit broadband market with a vertically integrated, proprietary system. SpaceX builds its own satellites, launches them on its own rockets, and operates its own ground stations. The Equatys alliance represents a counter-bet that a federated, multi-vendor ecosystem can eventually match Starlink’s coverage while offering governments the local control that SpaceX resists.[1][3]

The direct-to-device market is rapidly crowding with competitors taking various approaches. AST SpaceMobile recently launched its first five commercial satellites, while Lynk Global is testing its own cellular-compatible hardware. Apple has partnered with Globalstar for emergency messaging, and Starlink itself is rolling out direct-to-cell capabilities in partnership with terrestrial carriers.

Direct-to-device satellite connectivity differs fundamentally from traditional satellite broadband. While systems like Starlink's primary service use dedicated user terminals to track satellites, direct-to-device aims to connect to the unmodified antennas inside standard smartphones. This requires the satellite to deploy massive phased-array antennas to pick up the faint signals emitted by a handheld device on the ground.[1][2]

The choice of standardized spectrum is a critical differentiator for the Equatys group. These frequencies are internationally harmonized for mobile satellite services, providing globally available spectrum that is highly resilient to weather interference. In contrast, some competitors are attempting to use terrestrial cellular frequencies from space, which requires complex regulatory coordination to avoid interference.[3]

Despite the high-profile signing, the Equatys network is not an immediate market reality. The joint venture is targeting the end of 2029 to have its first system deployed, meaning it will arrive years after its primary competitors have established their initial footprints. The formal formation of Equatys also remains subject to regulatory approvals and Viasat's appointment as prime contractor.[1]

The Canadian connection

For Terrestar, the alliance offers a pragmatic path to scale without shouldering the entire capital burden. The Montreal-based company currently operates the Strigo mobile satellite service using capacity on a geostationary EchoStar satellite. Building a standalone low-Earth orbit constellation to cover Canada’s vast, sparsely populated landmass is a capital-intensive gamble for a regional operator.[1][3]

"It appeared obvious that building a LEO constellation on our own is not something that could be sustainable and viable," Terrestar CEO Jacques Leduc told Bloomberg. By plugging into the Equatys framework, Terrestar can offer its Canadian enterprise and government clients global roaming capabilities without funding a global constellation.[1][3]

The federated model allows regional players to punch above their weight, leveraging the shared infrastructure of the broader network while maintaining their distinct national branding and domestic regulatory compliance. This collaborative strategy is one Viasat has pursued aggressively to counter vertically integrated rivals, having previously acquired British satellite operator Inmarsat in 2023 to expand its global footprint.[2][5]

For Space42, the venture aligns with the United Arab Emirates' aggressive push to become a top-tier space power. The Abu Dhabi-based company, formed through a recent merger of Bayanat and Yahsat, brings substantial sovereign wealth backing to the Equatys project. The UAE has increasingly sought to position itself as a neutral technological bridge between Western markets and the Global South.[1]

The federated model also serves as a regulatory shield for nations hesitant to rely entirely on a single foreign corporation for critical communications infrastructure. By ensuring that domestic data remains within national borders and under the jurisdiction of local regulators, the Equatys framework offers a politically palatable alternative for governments wary of digital colonization.[2][3][5]

The success of the Equatys alliance will ultimately depend on execution rather than memorandums. Integrating discrete satellite networks across different orbits, built by different contractors, and operated by different companies is an unprecedented technical undertaking. The consortium has three years to translate its open-standards philosophy into functioning orbital hardware before its 2029 deployment target arrives.[1]