Viasat (VSAT) ELEVATE Program Augments IEC Telecom's Capability
Viasat Inc. VSAT announced that IEC Telecom, a prominent international satellite service provider, opted to join the ELEVATE program to enhance its IoT and satellite connectivity services, leveraging VSAT’s global L-band network.
The ELEVATE program offers customers a wide array of satellite connectivity and IoT solutions from various providers intended to augment business efficiency and sustainability. It also offers memberships to service providers working in a wide range of sectors, including energy, transport, utilities, mining, agriculture and more.
New entrants, disruptors or established brands of any size who have built an innovative digital solution seeking to scale using Viasat's network and footprint, can partake in the ELEVATE initiative. Apart from granting access to satellite-enabled IoT solutions, Viasat also provides support in developing go to market strategy, exposure through its distribution channel and technical assistance in delivering reliable satellite services.
IEC Telecom has a presence across nine countries and its IoT offerings include portable handsets, push-to-talk devices and hybrid systems for vehicular use. Viasat's broader partner network will likely open up a wide range of opportunities for potential collaborations on specialized communication solutions tailored to IEC Telecom’s clientele.
The ELEVATE marketplace will enable it to target customer bases requiring mission-critical communications or regions lacking dependable connectivity. Moreover, it will enable IEC Telecom to adapt quickly in accordance with changing market trends and accelerate growth in various industries such as defense, government, media and more.
The collaboration highlights the growing acceptance of Viasat’s services in satellite connectivity. Positive results from this recent venture will likely boost commercial prospects.
Viasat’s Satellite Services business is progressing well with key metrics, including ARPU (average revenue per user) and revenues, and is showing impressive growth. ARPU is growing on the back of a solid retail distribution network, which accounts for a rising proportion of high-value and high-bandwidth subscriber base. Furthermore, the growing adoption of in-flight Wi-Fi services in commercial aircraft is proving conducive to business growth.
Viasat’s impressive bandwidth productivity sets it apart from conventional and lower-yield satellite providers that run on incumbent business models. It has a competitive advantage in bandwidth economics, global coverage, flexibility and bandwidth allocation, which makes it believe that mobile broadband will act as a profit churner with a significant improvement in in-flight connectivity revenues.
The stock has lost 47.5% over the past year against the industry's rise of 23.2%.
Zacks Rank and Stocks to Consider
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Viasat currently has a Zacks Rank #3 (Hold).
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NVIDIA is the worldwide leader in visual computing technologies and the inventor of the graphic processing unit. Over the years, the company’s focus evolved from PC graphics to AI-based solutions that support high-performance computing, gaming and virtual reality platforms.
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