CARLSBAD, Calif., April 6, 2018 /PRNewswire/ -- Global communications company, Viasat Inc. (NASDAQ: VSAT) confirmed it will not be moving forward with Eutelsat Communications on a deal for use of the ViaSat-3 satellite, due to Eutelsat's decision to pursue a local market alternative.
Viasat President and Chief Operating Officer Rick Baldridge released the following statement: "Viasat remains excited about its ViaSat-3 program for Europe, Middle East and Africa (EMEA), which is well underway and on track. The Company believes there is significant interest in the ViaSat-3 program from prospective regional partners, as ViaSat-3 is expected to be the highest capacity communications satellite system in the world when it launches. The ViaSat-3 satellite for EMEA is expected to serve more than 1 Terabit per second (Tbps) of total network capacity to meet the growing broadband needs of residential, commercial aviation, maritime, enterprise and government sectors."
As there was no binding agreement with Eutelsat for the ViaSat-3 EMEA satellite, Viasat's capital plan is not dependent on Eutelsat's participation to proceed with the ViaSat-3 program.
Viasat also confirmed that Eutelsat's ViaSat-3 decision has no direct impact on existing contracts. Baldridge continued, "The current Viasat / Eutelsat joint venture, which has been in operation for more than one year, will continue to be governed under the existing agreements. Viasat's joint ownership of the KA-SAT satellite is currently serving Viasat's commercial aviation and government customers as well as direct-to-home residential subscribers throughout Europe."
Viasat and Eutelsat closed a broadband joint venture in March 2017 that gave Viasat joint ownership of the KA-SAT satellite. The joint venture also enabled Viasat to create a new consumer retail service in Europe, which is currently in early-stage operations and focuses on bringing enhanced broadband internet service plans to select European countries.
Viasat is a global communications company that believes everyone and everything in the world can be connected. For more than 30 years, Viasat has helped shape how consumers, businesses, governments and militaries around the world communicate. Today, the Company is developing the ultimate global communications network to power high-quality, secure, affordable, fast connections to impact people's lives anywhere they are—on the ground, in the air or at sea. To learn more about Viasat, visit: www.viasat.com, go to Viasat's Corporate Blog, or follow the Company on social media at: Facebook, Instagram, LinkedIn, Twitter or YouTube.
This press release contains forward-looking statements that are subject to the safe harbors created under the Securities Act of 1933 and the Securities Exchange Act of 1934. Forward-looking statements include statements about the future operation and governance of the existing joint venture; the future growth of Viasat in the European market, including potential expansion of teams, customers and partners; the Company's ability to build on commitments made to existing customers; its ability to expand its services and support efforts in the region; and references to expected capacity, service, speeds, coverage and other features of the ViaSat-3 class satellite platform. Readers are cautioned that actual results could differ materially from those expressed in any forward-looking statements. Factors that could cause actual results to differ include: contractual problems, product defects, manufacturing issues or delays, regulatory issues, technologies not being developed according to anticipated schedules, or that do not perform according to expectations; and increased competition and other factors affecting the commercial and defense sectors, generally. In addition, please refer to the risk factors contained in Viasat's SEC filings available at www.sec.gov, including Viasat's most recent Annual Report on Form 10-K and Quarterly Reports on Form 10-Q. Readers are cautioned not to place undue reliance on any forward-looking statements, which speak only as of the date on which they are made. Viasat undertakes no obligation to update or revise any forward-looking statements for any reason.
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SOURCE Viasat, Inc.