Viasat, Inc. VSAT recently announced that it has eliminated Internet speed limits for business jets equipped with Ka-band satellite connectivity system, thus redefining in-flight connectivity services. Touted as an “industry-first” move in the business aviation market, the removal of speed caps for Ka-band services will not only strengthen business-critical productivity but also promote enhanced customer experience with best-in-class in-flight entertainment services. These, in turn, will enable more efficient utilization of intensive passenger and flight crew applications.
Impressively, Viasat’s Ka-band solutions allow business jet customers to enjoy high-speed Internet connectivity from takeoff to touchdown. It empowers aviation clients to reinforce their in-flight connectivity (IFC) investments and helps customers to stay connected with streamlined business applications, web browsing and streaming services. The Ka-band takes an absolute advantage of global bandwidth to provide avant-garde Internet service with unrivalled speeds and best-in-market pricing to boost the competitiveness of the business jet market. Further, business aircrafts equipped with Viasat’s Global Aero Terminal 5510 on the ViaSat-1, ViaSat-2 and European Ka-band satellite service can also enjoy unlimited connectivity with data intensive applications like in-flight video conferencing, live TV and high-definition video streaming.
As a result of this landmark decision, passengers witnessed a speed of more than 40 Mbps across the new Ka-band service plans, thereby enhancing the onboard connectivity experience for business-aviation customers. Apart from supporting data-rich in-flight applications, customers can also subscribe to Viasat Unlimited Streaming, which provides a seamless access to online media services. Notably, these services are of utmost importance to customers who are dependent on virtual connectivity services for an enhanced communication system in the wake of the COVID-19 crisis. The decision to remove speed limits has also enabled mid-cabin to long-range business jets to stream and download large files for improved connectivity experience.
Viasat maintains a leading position in the satellite and wireless communications market. Encouragingly, a blue-chip customer base, which comprises the Department of Defense, civil agencies, allied foreign governments, satellite network integrators and large communications service providers and enterprises, adds to its strength. The company’s Government Systems segment is a major profit churner. Moreover, the impressive traction of Viasat 1-bandwith — the company’s first communication satellite and the world’s most cost-effective satellite bandwidth — has been supporting the government and satellite business. It also partnered with various cloud computing providers worldwide to embed AI and ML features through its secure, high-speed and resilient global satellite communications network and line of sight tactical network technologies.
With the surging popularity of high-engagement in-flight connectivity and high passenger engagement, leading industrial companies are scouting for new ways to utilize Viasat’s high capacity satellite solutions to maximize IFC investment and passenger satisfaction. The company’s impressive bandwidth productivity sets it apart from conventional and lower-yield satellite providers that run on incumbent business models. With the decline of air traffic due to COVID-19 pandemic, the latest move to eliminate the speeds limits for Ka-band services is likely to give a considerable boost to the aviation market. In fact, the move is a testament to Viasat’s global market dominance.
Viasat currently carries a Zacks Rank #3 (Hold). The stock has lost 55.7% compared with the industry’s decline of 1.4% in the past year.
Some other better-ranked stocks in the broader industry are Calix, Inc. CALX, Nokia Corporation NOK and Ericsson ERIC. While Calix sports a Zacks Rank #1 (Strong Buy), Nokia and Ericsson carry a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Calix has a trailing four-quarter positive earnings surprise of 43%, on average.
Nokia has a trailing four-quarter positive earnings surprise of 129.1%, on average.
Ericsson has a long-term earnings growth expectation of 26.1%.
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