Viasat Announces First U.S. Navy Military Sealift Command Ship Installation
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Insights
Upgrading to the Global Xpress (GX) Ka-band system and ELERA Enhanced L-band Maritime Antenna (ELMA) represents a significant technological advancement for Viasat, Inc. This move away from the legacy Ku-band system to a hybrid solution that combines Ka- and L-band services can offer higher data rates and more reliable communication, which are critical for military operations. The enhanced bandwidth and scalability ensure that the Military Sealift Command (MSC) can maintain robust communications, which is essential for operational readiness and mission accomplishment.
From an industry perspective, this contract showcases Viasat's capabilities in providing advanced satellite communications solutions and could position the company as a preferred contractor for future government and defense projects. This could potentially lead to an increase in Viasat's market share within the defense segment, impacting its long-term revenue stream and providing a competitive edge over other satellite communication providers.
The Next Generation Wideband (NGW) Follow-On contract underscores the importance of secure and resilient communications for U.S. defense operations. Viasat's role in maintaining and operating the MSC's communications infrastructure is a testament to the company's expertise and reliability in the defense contracting space. The successful completion of the first installation under this contract could serve as a proof of concept, potentially influencing future procurement decisions by the Defense Information Systems Agency (DISA) and other governmental bodies.
Investors should note the long-term nature of the contract, spanning 10 years, which provides Viasat with a stable revenue source and could improve its financial forecasting and strategic planning. Additionally, the integration of Inmarsat Government's capabilities with Viasat's existing services might lead to operational synergies and cost efficiencies, which could be reflected in improved margins and profitability.
From a financial perspective, the NGW Follow-On contract with the U.S. Navy Military Sealift Command may have a material impact on Viasat's future earnings. The acquisition of Inmarsat and the subsequent integration into Viasat's government business could lead to increased operational efficiency and a stronger position within the satellite communications market. The ability to deliver on such a complex contract could improve investor confidence and potentially affect the company's stock valuation positively.
However, investors should also consider the capital expenditures associated with upgrading and maintaining such a large fleet of ships. The initial investment in technology and infrastructure must be weighed against the expected long-term returns. Moreover, the dependency on government contracts can introduce volatility, as they are subject to political and budgetary constraints. It is important for stakeholders to monitor ongoing government spending trends and any shifts in defense priorities that could influence the sustainability of such contracts.
Company to Maintain and Operate Commercial Communications Infrastructure for 105 Ships Under Next Generation Wideband Follow-On Contract
This first installation of 105 ships demonstrates the company's ability to deliver a robust, reliable global managed satellite communications (SATCOM) solution. The company upgraded the MSC ship's primary afloat network from Ku-band to the Global Xpress (GX) Ka-band system and ELERA Enhanced L-band Maritime Antenna (ELMA), a variant of the award-winning LAISR L-band solution to provide communications on the move via a small-size, high throughput terminal.
"As the premier maritime logistics provider for the
The hybrid solution of Ka- and L-band service ensures that the MSC ships have secure, resilient, worldwide communications capabilities, as well as a reliable global, on-demand backup network. This approach is designed to provide significant enhancements over legacy Ku-band by providing higher and scalable data rates on ships' primary and back-up systems, and uniform coverage across the GX and ELERA networks. Additionally, by delivering the primary and secondary SATCOM capabilities in a holistic, managed service model that includes satellites, ground networks and type-approved terminals – SATCOM as a Service – the company attains an optimal state of efficiency and functionality, while delivering a superior user experience and saving government resources.
"We have reliably served the
The MSC fleet benefits from an integrated, worldwide solution that delivers high throughput with RF (Radio Frequency) band and path diversity to ships at sea. All of the network aspects are designed as a single solution and for mobility, so users experience a reliable, on-demand continuous service.
Visit our website to learn more about the Global Xpress Ka-band network and for more information about the ELMA terminal.
About Viasat
Viasat is a global communications company that believes everyone and everything in the world can be connected. With offices in 24 countries around the world, our mission shapes how consumers, businesses, governments and militaries around the world communicate and connect. Viasat is developing the ultimate global communications network to power high-quality, reliable, secure, affordable, fast connections to positively impact people's lives anywhere they are—on the ground, in the air or at sea, while building a sustainable future in space. In May 2023, Viasat completed its acquisition of Inmarsat, combining the teams, technologies and resources of the two companies to create a new global communications partner. Learn more at www.viasat.com, the Viasat News Room or follow us on Facebook, Instagram, LinkedIn, X or YouTube.
Forward-Looking Statements
This press release contains forward-looking statements that are subject to the safe harbors created under the Securities Act of 1933 and the Securities Exchange Act of 1934. Forward-looking statements include, among others, statements that refer to the expected benefits and performance of the Global Xpress network and Enhanced L-Band Maritime Antenna. Readers are cautioned that actual results could differ materially from those expressed in any forward-looking statements. Factors that could cause actual results to differ include: risks associated with the construction, launch and operation of satellites, including the effect of any anomaly, operational failure or degradation in satellite performance; our ability to realize the anticipated benefits of the GX class satellites and any future satellite we may construct or acquire; changes in relationships with, or the financial condition of, key customers or suppliers; our reliance on a limited number of third parties to manufacture and supply our products; increased competition; the effect of adverse regulatory changes (including changes affecting spectrum availability or permitted uses) on our ability to sell or deploy our products and services; changes in the way others use spectrum; our inability to access additional spectrum, use spectrum for additional purposes, and/or operate satellites at additional orbital locations; competing uses of the same spectrum or orbital locations that we utilize or seek to utilize; introduction of new technologies and other factors affecting the communications and defense industries generally. In addition, please refer to the risk factors contained in our SEC filings available at www.sec.gov, including our most recent Annual Report on Form 10-K and Quarterly Reports on Form 10-Q. Readers are cautioned not to place undue reliance on any forward-looking statements, which speak only as of the date on which they are made. We undertake no obligation to update or revise any forward-looking statements for any reason.
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SOURCE Viasat, Inc.
FAQ
What contract did Viasat, Inc. announce the completion of the first ship installation under?
What does the NGW Follow-On contract involve?
When was the NGW Follow-On contract awarded?
What company was awarded the NGW Follow-On contract by DISA?
What acquisition led to Inmarsat Government becoming part of Viasat's government business?
What upgrade did Viasat provide to the MSC ship's primary afloat network?
What is ELERA Enhanced L-band Maritime Antenna (ELMA)?
Why is the hybrid solution of Ka- and L-band service important for MSC ships?
Who mentioned the critical role of Military Sealift Command in the nation's defense?
