Viasat is shifting its focus away from the consumer broadband market in favor of building out its mobile services. That was made clear in its annual report released this week. The satellite company said shifting consumer habits and industry trends made it apparent that there were more growth opportunities in mobile that would require shifting some of its focus away from fixed residential broadband, notes TheDesk.net.
“When we originally embarked on our satellite broadband services strategy, our focus was on the U.S. fixed residential market,” Viasat officials wrote in the report. “But as we have learned more, we have purposefully and systematically chosen to derive a smaller proportion of revenues from the U.S. residential market, in favor of prioritizing growth in mobile services which has become a very large and attractive market where we have a strong position.”
Viasat primarily markets its broadband satellite internet service in rural areas that historically have been underserved by land-based providers. In recent years, Viasat has faced competition from startup satellite companies and fixed wireless providers. Starlink, T-Mobile and Verizon are among some of the companies vying for Viasat customers.
Viasat is not abandoning its consumer business — the company is still allowing new customers to sign up for their residential satellite internet service, and will support existing customers over the long term. But the company is reorienting its business focus around those enterprise and government contracts, to include new mobile broadband initiatives, according to TheDesk.net.
“In mobile broadband we generally compete only with other satellite solutions, rather than terrestrial competitors who receive significant government subsidies,” Viasat executives wrote in the company’s annual report. “We believe we are successfully differentiated from our satellite competition. Our breadth of expertise helps us understand market demands and the advantages and disadvantages of alternative competing space systems in different orbits and frequency bands. This knowledge allows us to design, build and operate systems best suited to the unique geographic demand needs of global mobile customers.”
Viasat says its mobile broadband solutions have a number of applications, to include in-cabin WiFi connections on board domestic and international flights, business aviation, and connected cars, trains, buses and boats. Mobile broadband has helped Viasat earn $36 billion in revenue since 2020, the company said.
By Leslie Stimson, Inside Towers Washington Bureau Chief
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