Space42 and Viasat have finalized a binding agreement to establish Equatys, a shared satellite and ground infrastructure platform for direct-to-device connectivity. Each company will initially contribute $400 million, while Space42 is expected to provide another $200 million through a future funding round open to third-party investors, bringing combined equity commitments to as much as $1 billion. Equatys will use 3GPP non-terrestrial network standards so standard smartphones and Internet of Things devices can access satellite services without specialized hardware. Its Tower Company model will let mobile operators share satellite and ground assets while retaining their spectrum licenses, customers and commercial independence. The initial architecture is designed to scale to 2,800 satellites across 60 orbital planes and three altitude layers. Viasat is expected to become the prime technology contractor, subject to regulatory approvals and other closing conditions. Viasat shares fell as much as 5% in premarket trading, after rising more than 97% year to date and 147% over the past 12 months.