Viasat, Inc. VSAT has successfully demonstrated its direct-to-device (D2D) satellite connectivity for the first time in the United Arab Emirates. Held at the UAE's Telecommunications and Digital Government Regulatory Authority headquarters during the Abu Dhabi Space Debate event, the demonstration involved sending satellite-enabled two-way messages and SOS alerts to event attendees. This marks Viasat's third successful D2D demonstration this quarter, following similar events in India and Saudi Arabia. 

Millions of people in the world, particularly in rural and remote areas, do not have access to reliable connectivity. Development of a terrestrial infrastructure in sparsely populated areas can be an expensive undertaking and economically unfeasible. Additionally, terrestrial infrastructure is more vulnerable to natural disasters than non-terrestrial networks. In this context, Viasat’s D2D smartphone connectivity could be a transformative solution.  

During the trial, Viasat used a commercially available Android smartphone with non-terrestrial network (NTN) connectivity and leveraged an over-the-top messaging application. Messages were transmitted via Viasat’s L-band satellites, positioned in orbit above Asia, showcasing its ability to deliver reliable satellite communication for users in remote areas. The transmission was facilitated by a 3GPP standards-based NTN service infrastructure installed in Viasat’s gateways by its ecosystem partner, Skylo.

Will This Drive VSAT’s Share Performance?

D2D technology is an emerging solution in the communication space that allows standard consumer devices, including smartphones, vehicles and industrial equipment, to connect efficiently with satellite and terrestrial connectivity. It reduces operating costs by eliminating the need for additional dedicated hardware. The technology aligns with global mobile 3GPP release 17 standards used by numerous satellite operators, mobile network service providers, chipset and smartphone manufacturers. 

Recognizing the vast potential of the technology across industries, Viasat is steadily advancing its satellite connectivity portfolio. The company has recently launched the Arctic Satellite Broadband Mission (ASBM), which includes the deployment of two satellites, ASBM-1 and ASBM-2, into a highly elliptical orbit (HEO). This represents the first HEO mission to carry a commercial broadband service payload. These satellites will host the GX10A and GX10B Ka-band payloads, enabling Viasat to extend its high-speed global network and deliver dedicated coverage to the Arctic region.

Viasat is also ramping up investments in developing its revolutionary ViaSat-3 broadband communications platform, which will have nearly 10 times the bandwidth capacity of ViaSat-2. These satellites will be capable of covering one-third of the world, including the Americas. The ViaSat-3 platform will help to form a global broadband network with sufficient network capacity to allow better consumer choices with an affordable, high-quality, high-speed Internet and video streaming service. In a nutshell, Viasat has garnered enough economics of scale and scope to serve vast emerging markets in South America, Africa, the Middle East, and Western Asia.

As the demand for faster and more reliable connectivity continues to surge, these developments underscore Viasat’s continued dedication to expanding its global presence and enhancing its capabilities to deliver innovative solutions, leading to higher revenues. Improving financial performance is likely to propel the stock upward.

VSAT’s Stock Price Performance

Shares of Viasat have plunged 60.9% over the past year against the industry’s growth of 30.4%.

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VSAT’s Zacks Rank and Key Picks

Viasat currently carries a Zacks Rank #4 (Sell). 

Some better-ranked stocks in the broader industry have been discussed below.

Ericsson ERIC carries a Zacks Rank of 2 (Buy) at present. In the last reported quarter, ERIC delivered an earnings surprise of 22.22%. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Headquartered in Stockholm, Sweden, Ericsson is a leading provider of communication networks, telecom services and support solutions. The company is a leader in telecommunications and is now expanding its role into an ICT (Information and Communications Technology) solutions provider. 

InterDigital, Inc. IDCC sports a Zacks Rank of 1 at present. It has a long-term growth expectation of 17.44%

IDCC is a pioneer in advanced mobile technologies that enable wireless communications and capabilities. 

Ubiquiti Inc. UI sports a Zacks Rank #1 at present. In the last reported quarter, Ubiquiti delivered an earnings surprise of 20.9%. Its highly flexible global business model remains apt to adapt to the changing market dynamics to overcome challenges while maximizing growth. 

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