ViaSat turning to high-speed Internet service for revenue

Photo by Sean Gallagher

 

Despite stocks down a third from eight months ago, wireless communications and technology provider ViaSat is banking on its satellite broadband service Exede, launched during the last quarter of FY 2012, to move on from its dependence on US Government sales. Almost half of the company’s revenue comes from defense contracts.

 

Investors were unimpressed with the rollout of the internet from satellite service, with company stocks sliding to $35 from $50 just eight months ago. However, ViaSat Chief Executive Mark Danberg, clarifies that despite lukewarm reception from investors, almost 40% of the current 20,000 subscribers are already moving to the high-speed Internet service.

 

Mr Danberg also explained the move to a new field was sparked not by shrinking Government contracts, rather its slow growth compared to other sectors of the company’s business. ViaSat has been said to be moving swiftly to non-Government satellite service to avoid the impact of government budget cuts. The home internet service already grew 31 percent during the past quarter, and Visat expects to cut-off government satellite service-based revenue by 10, from 45% to 35% in the next five years.