Viasat, Inc. VSAT recently collaborated with BSNL, a prominent telecommunication company in India to complete the first trial of direct-to-device (D2D) satellite connectivity in the country. The company is also working with BSNL to expand the extent of satellite services in consumer and IoT devices throughout India.

Millions of people in India, particularly in rural and remote areas, don’t have access to reliable connectivity. Development of a terrestrial infrastructure in sparsely populated areas can be an expensive undertaking and economically unfeasible. Terrestrial infrastructure is more vulnerable to natural disasters compared to non-terrestrial networks. Amid this backdrop, VSAT’s direct-to-device smartphone connectivity can be a game changer.

During the trial conducted, VSAT successfully demonstrated two-way messaging and SoS messaging capabilities by using an Android commercial smartphone enabled for a non-terrestrial network. The messages were transmitted approximately 36,000 KM to Viasat’s geostationary L-band satellites, underscoring the technical feasibility of satellite services for Indian consumers and businesses.

Will This Collaboration Drive VSAT’s Share Performance?

India, one of the fastest-growing economies in the world, is aiming to gain a leadership position in technological advancements. The advanced D2D technology has the potential to play a transformative role in achieving this objective. VSAT’s D2D technology which follows 3GPP 17 standards has been widely adopted by smartphones, chipset manufacturers, and mobile network operators worldwide.

The cost-effective and sustainable innovation can significantly bolster India’s production and supply chain efficiency across a wide range of sectors, including agriculture, renewable energy, automotive, transport and more. The solution’s minimal hardware requirements make it suitable for mission-critical communication, disaster recovery, and developing digital infrastructure in rural regions.

Recognizing this potential, BSNL is leveraging VSAT’s capabilities to develop a transparent and collaborative D2D ecosystem across the nation. The collaboration highlights VSAT’s extensive expertise in satellite communication space. This development will likely strengthen the company’s foothold in the region and enhance its commercial prospects.

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 are impeding net sales.

VSAT’s Stock Price Performance

Shares of Viasat have lost 44.1% over the past year against the industry’s growth of 60.1%.

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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. In the last reported quarter, it delivered an earnings surprise of 25.81%. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

ZG delivered an earnings surprise of 37.41%, 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. 

Ubiquiti Inc. UI carries a Zacks Rank of 2 at present. The company offers a comprehensive portfolio of networking products and solutions for service providers and enterprises.

Its excellent global business model, which is flexible and adaptable to evolving changes in markets, helps it to beat challenges and maximize growth. The company’s effective management of its strong global network of more than 100 distributors and master resellers improved its UI’s visibility for future demand and inventory management techniques.

Workday Inc. WDAY sports a Zacks Rank of 1 at present. In the last reported quarter, it delivered an earnings surprise of 7.36%.
 
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 that makes the process easier for organizations to provide analytical insights and decision support.

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