Viasat’s breakthrough in Saudi Arabia boosts shares by 11%

Viasat, Inc. (NASDAQ: VSAT), a global satellite communications leader, has made headlines with its successful demonstration of direct-to-device (D2D) satellite connectivity in Saudi Arabia. This technological milestone was achieved during the “Connecting the World from the Skies” event in Riyadh, hosted by the Communications, Space & Technology Commission (CST) and the International Telecommunication Union (ITU). Following this announcement, Viasat’s shares surged 11% to $9.68, signaling renewed investor confidence after a challenging year for the company.

Pioneering technology redefines satellite communications

The demonstration marked the first time satellite-enabled two-way messaging was achieved in the Kingdom. Using Viasat’s L-band spacecraft, orbiting above the Indian Ocean, attendees witnessed seamless message transmission over a commercial Android smartphone enabled with non-terrestrial network (NTN) connectivity. This breakthrough was powered by the Bullitt over-the-top messaging application and supported by infrastructure developed by Viasat’s ecosystem partner, Skylo.

Unlike traditional setups requiring dedicated hardware, D2D technology allows everyday devices to switch seamlessly between terrestrial and satellite connectivity. This approach follows the new global 3GPP release 17 standards, heralding a significant leap for industries relying on constant connectivity, such as logistics, automotive, and emergency services.

Expert insights on industry impact

Viasat’s Chief Technical Officer, Sandeep Moorthy, highlighted the transformative potential of D2D technology in regions with limited or unreliable terrestrial networks. He emphasized that expanding satellite-based connectivity could revolutionize industries by reducing barriers, enhancing supply chain efficiency, and fostering sustainability. Moorthy expressed gratitude to the CST for its role in facilitating the Riyadh demonstration, underscoring the collaborative effort required to advance global connectivity.

Viasat’s strategic use of licensed satellite spectrum

A critical element of this successful test was Viasat’s strategic use of already licensed satellite spectrum, ensuring the technology integrates with mobile network operators without interfering with terrestrial frequencies. This innovation positions Viasat to collaborate seamlessly with telecom providers worldwide, accelerating the adoption of D2D services.

Financial and market implications

This breakthrough comes at a pivotal moment for Viasat, whose shares hit a 52-week low of $6.69 just days before the announcement. The 11% jump reflects optimism about the company’s potential to lead in a market poised for exponential growth. D2D technology, particularly in fast-growing regions like the Gulf and Asia-Pacific, is anticipated to unlock significant opportunities for satellite operators, handset manufacturers, and mobile network providers.

Broader industry trends

The adoption of 3GPP standards by leading satellite and mobile operators underscores a global shift toward integrated connectivity. As everyday devices become more reliant on seamless network transitions, the demand for satellite-enabled solutions will continue to grow. With its proven expertise, Viasat is well-positioned to play a central role in this evolving ecosystem.

A promising future for satellite innovation

Viasat’s demonstration in Saudi Arabia is more than a technological feat; it represents a paradigm shift in how the world connects. By bridging gaps in traditional networks, this innovation has the potential to empower businesses, enhance public safety, and deliver connectivity to underserved regions. With its shares rebounding and industry recognition growing, Viasat is charting a path toward a stronger and more connected future.