Viasat, Inc. VSAT recently announced that it has collaborated with non-terrestrial network (NTN) provider Skylo to demonstrate direct-to-device (D2D) satellite connectivity in the Kingdom of Saudi Arabia. This was the first instance of a D2D trial conducted in the Middle Eastern country.
Using commercial NTN-enabled Android smartphones, VSAT and Skylo showcased the ability to send satellite-enabled two-way messages and SoS communications. During the trial, 3GPP standards-compliant NTN service infrastructure was used in conjunction with Viasat’s industry-leading L-band spacecraft, which operates over the Indian Ocean region. The NTN infrastructure is deployed in Viasat Gateways by Skylo. Moreover, Viasat’s strategy of using an already licensed and dedicated satellite spectrum will ensure its service will not interfere with existing terrestrial mobile networks.
Will This Venture Drive VSAT’s Share Performance?
D2D connectivity is rapidly emerging as a transformative technology in the communication space. It allows standard consumer devices, including smartphones, vehicles and industrial equipment, to connect efficiently with both satellite and terrestrial connectivity. It reduces operating costs by eliminating the need for additional dedicated hardware. The technology complies with global mobile 3GPP release standards used by numerous satellite operators, mobile network service providers, chipset and smartphone manufacturers.
D2D services can mitigate issues with dead zones and lower the significant upfront investment that terrestrial networks demand. This allows enterprises to easily establish connectivity in underserved, remote areas where installing terrestrial networks was previously deemed not viable. Moreover, terrestrial network setups are more prone to damage during natural disasters compared to D2D services. D2D technology is gaining significant attention worldwide owing to its cost efficiency, lower deployment costs, greater coverage and higher resiliency compared to traditional networks.
Recognizing the vast potential of the technology across industries, Viasat is steadily advancing its satellite connectivity portfolio. Earlier this month, the company collaborated with BSNL, a prominent telecommunication entity in India, to conduct a direct-to-device trial in the country. The recent venture in Saudi Arabia is part of its broader strategy to boost its commercial prospects in the fast-growing Gulf and Asia-Pacific region. By showcasing its D2D innovation, Viasat is positioning itself as the frontrunner in this emerging market. This bodes well for long-term growth.
Viasat is also ramping up investments in the development of 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 all 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.
However, intensifying competition from other major players in the industry, such as AT&T, Comtech, Starlink, and DISH Network, is impeding net sales.
VSAT’s Stock Price Performance
Shares of Viasat have lost 54% over the past year against the industry’s growth of 41.1%.
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VSAT’s Zacks Rank and Key Picks
Viasat currently carries a Zacks Rank #4 (Sell).
Zillow Group, Inc. ZG carries a Zacks Rank #2 (Buy) at present. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
In the last reported quarter, it delivered an earnings surprise of 9.38%. ZG delivered an earnings surprise of 25.47%, on average, in the trailing four quarters. The company is witnessing solid momentum in rental revenues, driven by growth in both multi and single-family listings, which is a positive factor.
InterDigital IDCC sports a Zacks Rank #1 at present. In the last reported quarter, it delivered an earnings surprise of 114.47%.
It is a pioneer in advanced mobile technologies that enable wireless communications and capabilities. The company designs and develops a wide range of advanced technology solutions used in digital cellular, wireless 3G, 4G and IEEE 802-related products and networks.
Workday Inc. WDAY carries a Zacks Rank of 2 at present. In the last reported quarter, it delivered an earnings surprise of 9.88%.
WDAY is a leading provider of enterprise-level software solutions for financial management and human resource domains. The company’s cloud-based platform combines finance and HR in a single system, making it easier for organizations to provide analytical insights and decision support.
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