November 8, 2024
Geostationary operator Viasat is in advanced talks to buy broadband capacity from Telesat’s future low Earth orbit satellites as competition from Starlink is set to intensify in the incoming Trump Administration.
This move by Viasat comes at a time when the satellite industry is experiencing an unprecedented surge in competition, particularly from the likes of Starlink, Amazon’s Kuiper Systems, and OneWeb. As these low Earth orbit (LEO) constellations continue to gain traction and expand their coverage, geostationary operators like Viasat are facing increasingly stiff competition.
Telesat’s LEO constellation, which is still in its development phase, promises to offer faster and lower-latency internet connectivity compared to traditional geostationary satellites. Viasat’s decision to partner with Telesat is seen as a strategic move to stay competitive in the market and counter the growing threat posed by Starlink.
Starlink, backed by SpaceX, has been aggressively expanding its user base and coverage area, with over 1 million subscribers already on board. As the service continues to gain popularity, geostationary operators like Viasat are likely to feel the pinch, particularly in the consumer broadband market.
The deal between Viasat and Telesat is seen as a win-win for both parties. Viasat gets access to Telesat’s LEO capacity, which will enable it to offer faster and more competitive broadband services to its customers. On the other hand, Telesat gets a significant anchor customer for its LEO constellation, providing a much-needed revenue boost.
While the terms of the deal are still not disclosed, it is believed that Viasat will be purchasing a significant portion of Telesat’s LEO capacity. This will not only help Viasat to expand its service offerings but also provide a major revenue stream for Telesat.
The increased competition in the satellite industry is expected to drive innovation and lower prices, ultimately benefiting consumers. As the market continues to evolve, it will be interesting to see how geostationary operators like Viasat adapt to the changing landscape and compete with the likes of Starlink and other LEO constellations.
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