Viasat Energy Services Introduces Enhanced Hybrid Network Service for the Energy Industry
Viasat Energy Services has introduced an enhanced managed communication service for remote oil and gas companies, expanding its existing enterprise-grade connectivity. This new service incorporates low earth orbit (LEO) satellite capacity with Viasat's current multi-orbit and terrestrial networks, creating a single, integrated solution. Available early in Q3 2024, it aims to boost operational efficiency and crew welfare by supporting cloud-based computing, operational safety, and cybersecurity. President Lee Ahlstrom emphasized the service's potential to address complex challenges and advance digital transformation in the energy sector.
- Enhanced managed communication service expands capacity and capabilities for remote oil and gas companies.
- Integration of LEO satellite capacity with existing multi-orbit and terrestrial networks.
- Service supports advanced digital transformation efforts for energy companies.
- Available early in Q3 2024, aligning with strategic implementation timelines.
- Supports a range of applications including cloud-based computing and operational safety.
- Incorporates Viasat's cybersecurity expertise and Intelie™ AI/ML platform.
- Aims to improve crew welfare and operational efficiency.
- No specific financial metrics or projected revenue impacts mentioned.
- Potential high costs associated with integrating new satellite capacities.
- Implementation and rollout risks could delay the service beyond Q3 2024.
- Dependence on successful integration of new and existing technologies.
Insights
Viasat's new hybrid network service for the energy industry leverages a combination of low earth orbit (LEO) satellites, multi-orbit and terrestrial capacity. This advanced technology can significantly enhance operational efficiency for oil and gas companies. By incorporating LEO satellites, the service offers lower latency and higher data throughput, which are important for real-time applications and remote monitoring systems.
This service enhancement aligns with the industry's shift towards digital transformation. The integration of Viasat's cybersecurity measures and AI capabilities ensures that the data is not only transmitted efficiently but also securely. This is vital for energy companies that handle sensitive data and operate in remote and often volatile environments.
From a tech perspective, this upgrade could set a new standard in the industry, encouraging other players to adopt similar integrated network solutions. Investors should note that such technological advancements could position Viasat as a key player in the energy sector's digital infrastructure.
Viasat's move to enhance its hybrid network service specifically targets the energy sector, a sizeable market with substantial infrastructure needs. This strategic focus can lead to increased revenue streams and potentially higher margins, given the complex nature of services required by oil and gas companies. These companies are increasingly investing in digital transformation to improve efficiency and safety, which aligns well with Viasat's new offering.
However, investors should consider the costs associated with deploying and maintaining this enhanced service. Integrating LEO satellites and advanced cybersecurity features likely involves significant capital expenditure. Nonetheless, the potential for long-term contracts with major energy firms could offset these initial costs and provide a steady revenue stream.
In the short term, there might be a slight impact on Viasat's financials due to the investments needed for this service rollout. But in the long term, this could translate into a strong competitive advantage and a stable revenue base, which are positive indicators for investors.
The introduction of Viasat's enhanced hybrid network service is a timely response to the growing demand for reliable connectivity in the energy sector. This market has been under pressure to improve operational efficiency and adopt digital solutions, especially in remote locations where traditional connectivity options are limited.
By offering a managed service that integrates various satellite and terrestrial communication technologies, Viasat can provide a more comprehensive solution. This service not only enhances operational efficiency but also improves crew welfare, which is a significant factor in maintaining workforce productivity and satisfaction in isolated environments.
Market-wise, this move can help Viasat capture a larger share of the energy sector's connectivity market. The emphasis on cybersecurity and AI-driven operational insights also addresses critical industry needs, making this a well-rounded offering. Investors should view this as a strategic expansion with the potential for substantial market penetration and customer retention.
The fully managed service offers expanded capabilities to improve operational efficiency for energy companies and enhance crew welfare.
The new solution, part of Viasat Energy Services' range of offerings for the Energy sector, has been expanded to seamlessly incorporate low earth orbit (LEO) satellite capacity alongside Viasat Energy Services' existing multi-orbit and terrestrial capacity designed to deliver highly flexible capabilities that can address energy customer needs through a single, integrated and fully managed service. The enhanced service is expected to be available early in the third quarter of calendar year 2024.
The integrated service offering, as part of the Viasat network, enhances performance through capacity augmentation to support additional capabilities for Energy Services customers - oil and gas operators, drilling contractors, and service companies - by powering a range of applications, including enterprise-grade solutions for customers' cloud-based computing services, applications to drive operational efficiency and safety, and enhanced crew welfare offerings. The service is also designed to incorporate Viasat's cybersecurity expertise and its operational artificial intelligence software and machine learning platform, Intelie™. These capabilities are all delivered alongside Viasat's existing robust service commitments.
Lee Ahlstrom, President, Viasat Energy Services, said: "Serving customers exceptionally well is our North Star – no matter the underlying technology to get there. Our energy customers are looking to solve complex challenges and operate more safely, efficiently, and sustainably. Our services are designed to make that happen. This enhanced hybrid network service offering will allow customers to improve operational efficiency and support their most advanced digital transformation efforts in the future."
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.
Copyright © 2024 Viasat, Inc. All rights reserved. Viasat, the Viasat logo and the Viasat signal are registered trademarks of Viasat, Inc. All other product or company names mentioned are used for identification purposes only and may be trademarks of their respective owners.
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 features, benefits and performance of Viasat's managed communications services, including the planned LEO capacity. 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; contractual problems; our ability to successfully develop, introduce and sell new technologies, products and services; 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; and other factors affecting the energy sector 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.
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