UAE based Space42 and US based Viasat have signed an agreement to establish Equatys, a new venture focused on providing direct satellite connectivity to smartphones and other devices around the world.

The two companies plan to commit up to $1 billion in equity to the venture. Space42 and Viasat will each provide an initial $400 million, while Space42 is expected to contribute another $200 million through a future funding round that could also involve outside investors.

Equatys is being created to develop shared space and ground infrastructure for global direct to device services. The platform is intended to help connect smartphones and other compatible devices directly to satellites, expanding connectivity beyond areas served by traditional ground based networks.

The agreement brings together Viasat's satellite communications capabilities with Space42's work in satellite connectivity and geospatial technology.

The companies say the venture will focus on building infrastructure that can support global direct to device connectivity and advanced mobile satellite services.

The planned investment highlights the growing competition in the satellite communications industry as technology companies and satellite operators work to extend mobile connectivity to areas where conventional networks have limited reach.