Page 62 - SAMENA Trends - May 2020

SATELLITE UPDATES SAMENA TRENDS

ViaSat Confirms New LEO Constellation Plans, Record-Breaking Q4 Results

Satellite operator Viasat reported record-
breaking revenue increases and subscriber
growth, and dropped a surprise revelation
that it was scrapping its planned Medium-
Earth Orbit (MEO) constellation for a new
Low-Earth Orbit (LEO) constellation that
will launch in approximately five to six
years — all during its Fourth Quarter (Q4)
2020 and full-year results call on May 26.
Viasat executives on the call said they
were confident that the LEO constellation
will receive subsidy funding from the
FCC’s $16 billion Rural Digital Opportunity
Fund (RDOF) for U.S. broadband services.
Viasat’s full-year 2020 revenues increased
11.7% Year-over-Year (YOY) to $2.3 billion
and its Q4 2020 quarterly total revenues
increased 6.2% YOY to $591.7 million — its
ninth consecutive quarter of growth. While
new contract awards had been declining
due to the COVID-19 pandemic, the operator
said its Satellite Services and Government over year. Finally, Viasat reported that it would have used in MEO, but the satellites
Systems divisions drove the surge, backed added an impressive 590,000 U.S.-based are a lot smaller and less expensive than
by a sustained sales backlog. Service fixed broadband subscribers as part of they otherwise would be, but the main
revenues rose 10.5% to $292.7 million, the FCC’s “Keep Americans Connected” attraction is that things are evolving, but
with revenues specifically from satellite pledge. In regards to the operator’s plans assuming that the FCC does allow LEO to
services increasing 11.8% YOY to $212.4 for LEO, Viasat CEO Mark Dankberg said be eligible in the Phase II part of the Rural
million — a record for the California- that the company is paying close attention Digital Opportunity Fund. The opportunity
based operator. Average revenues per to FCC guidelines for rural broadband for funding is far in excess of the increase
user spiked 13.5% YOY to $93.06 primarily subsidiaries. “We had a purpose in mind in what the constellation would cost.
driven by the addition of new subscribers for the MEO constellation, but the biggest So that’s the main reasoning behind it.”
to premium broadband service plans due factor in wanting to go [to LEO] is really the Dankberg added that the constellation
to increased COVID-19 shelter-in-place amount of funding that the FCC is aiming at won’t be in place until approximately 2026,
orders. Despite the uncertainties related low specifications,” said Dankberg during and that the company is still continuing
to COVID-19 pandemic, Viasat’s in- the earnings call. “[A LEO constellation] plans to build additional satellites beyond
flight service revenues jumped 13% year does involve more satellites than we ViaSat-3 and ViaSat-4.

Satellite Player SES Signs On To FCC C-Band Plan

Satellite service provider SES laid out service providers including SES receive SES are eligible to receive up to $4.87 and
plans to invest $1.6 billion in new kit, as incentive payments the agency is dangling $3.97 billion, respectively. The remaining
part of a commitment to free up C-Band in an effort to ensure a speedy repack. $866.5 million is set to be split between
(3.7GHz to 4.2GHz) spectrum for 5G on Under the FCC’s C-Band reallocation plan, providers Eutelsat, Telesat and Star One.
an accelerated timetable set by the US satellite companies collectively stand Telesat already signed on to the plan ahead
Federal Communications Commission to receive up to $9.7 billion in incentive of a 29 May commitment deadline. When
(FCC). SES said in a press release the funds payments if they meet certain spectrum Intelsat filed for bankruptcy earlier this
will go toward the procurement and launch clearing deadlines. However, the FCC said month, CEO Stephen Spengler declared
of new satellites and other equipment it will only dole out those funds if “80 per the company intended “to move forward
and services, with the bulk of the money cent of accelerated relocation payments” with the accelerated clearing of C-band
expected to be awarded to US suppliers. on offer are accepted, effectively requiring spectrum”, but it has yet to make a formal
The move comes as the FCC prepares to both SES and fellow satellite provider commitment.
auction 280 MHz of C-Band spectrum in Intelsat to agree to its plan. Of the $9.7
December, and could help ensure satellite billion in incentive payments, Intelsat and

62 MAY 2020