Terrestar signs Equatys MoU, giving Canada a sovereign D2D path

Terrestar Solutions has signed an MoU to join Equatys, the Viasat/Space42 joint venture building shared satellite infrastructure for direct-to-device (D2D) connectivity. The Canadian mobile satellite services operator brings its planned CaStar low Earth orbit constellation into the fold as the venture's first national partner.

The deal matters for one structural reason. CaStar will operate as a sovereign Canadian system, with domestic ground gateways keeping Canadian traffic inside national jurisdiction. At the same time, it will interwork globally through Equatys. Each operator keeps full ownership and control of its own assets.

The MoU was signed on October 29, 2026, on the sidelines of the official visit of Sheikh Khaled bin Mohamed bin Zayed Al Nahyan, Crown Prince of Abu Dhabi, to Canada, where he attended talks with Prime Minister Mark Carney. Diplomatic timing gives the agreement political weight that pure commercial deals rarely carry.

What does the 'sovereign shell' model change?

Equatys describes the arrangement as its first example of a "sovereign shell" approach. In practice, this combines a global commercial system with constellations optimised for specific countries or regions, each with a dedicated ground segment and run by a trusted local operator, built to common standards that keep them fully interoperable.

The announcement stated: "The MoU advances a partnership model that would combine Terrestar's position as a Canadian-controlled and Canadian-operated MSS provider with Equatys' role as a shared, multi-tenant, interoperable global infrastructure enabling D2D and advanced MSS services in a 5G network environment."

For practitioners, the model offers a middle path between two extremes. An operator can build and run a national system that answers to domestic regulators and security requirements, yet still plug into shared spectrum, geographic coverage and interoperability economics abroad.

How do the two principals frame it?

Karim Michel Sabbagh, Managing Director of Space42, framed the deal as proof that sovereignty and scale need not compete. He said: "This MoU demonstrates how sovereign satellite systems and shared global infrastructure can work together to deliver D2D services globally. Terrestar maintains its position as Canada's independent MSS operator while exploring how to participate in a broader ecosystem. We are introducing a model where national capabilities and international collaboration reinforce rather than compete with one another."

Mark Dankberg, Chairman and CEO of Viasat, pointed to the standards dimension. He said the collaboration advances "a global, standards-based open architecture with an interoperability framework via a shared infrastructure model" and positions Equatys to drive mass adoption in the D2D and next-generation MSS market.

Dankberg also claimed "compelling economic benefits from geographic and spectral efficiencies" for participating global, regional and national space operators. That is a vendor projection, not a measured result. No deployment figures, subscriber numbers or throughput targets appear in the announcement.

Who else is being courted?

Viasat's chief made the addressable ecosystem explicit. Equatys, he said, is committed to working across the global space industry as well as with mobile network operators, device OEMs, chipset vendors, regulators and standards bodies. That list reads like a roadmap for future MoUs on the Terrestar pattern.

The announcement covers intent, not contracts. CaStar remains a planned constellation, and the MoU establishes a framework for interworking between the two systems and their ground segments as a coordinated multi-system non-terrestrial network (NTN) infrastructure. Binding agreements, spectrum coordination and hardware timelines will decide whether the sovereign shell becomes an industry template. Equatys will now look to replicate the model with further national operators seeking D2D reach without surrendering control of their infrastructure.