Viasat Leasing Capacity for MENA Region

1/15/2024 - Written By Chris Quilty

The Qatar Satellite Company, Es’hailSat, just announced an expanded agreement with Viasat Energy Services for VSAT connectivity across the MENA (Middle East and North Africa) region. The deal will use Es’hail-1 satellite capacity designed to serve the government, maritime, and oil & gas sectors.

Why would Viasat, bringing on 1 Tbps of capacity with each ViaSat-3 satellite, pay for expensive third-party capacity? Most obviously, because ViaSat-3 F2 is still in ground storage instead of orbit. It’s also worth noting that this contract derives from Viasat Energy Services (the former RigNet), which has historically purchased capacity on more than three dozen satellites. So, while Viasat would love to internalize this capacity over the long term until ViaSat-3 capacity comes online, they might be forced to remain a net buyer of satellite capacity. That’s a cruel irony for a company that foot-stomped its IFC competitors over the past two years, creating a need for significant future capacity. Consequently, ongoing delays to the ViaSat-3 F2 launch will impair the near-term profitability of these contracts, as Viasat is forced to purchase expensive spot capacity to meet its deployment timelines. But it is better to take the hit than launch F2 prematurely.

SOURCE: https://www.satellitetoday.com/connectivity/2024/01/09/viasat-and-eshailsat-sign-capacity-agreement-in-middle-east/