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Can Viasat's Satellite Voice Calling Demo for BMW Drive Growth?

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Key Takeaways

  • VSAT completed the first satellite-enabled voice call integrated into a BMW Group vehicle platform.
  • Viasat combines satellite, NB-IoT, Qualcomm and Fraunhofer IIS technologies for voice connectivity.
  • Viasat's embedded eSIM supports NTN communications, with future 5G satellite services in development.

Viasat, Inc. (VSAT - Free Report) has taken a significant step in connected vehicle technology by demonstrating the first satellite-enabled voice call facility fully integrated into a BMW Group vehicle platform. The milestone highlights the company's efforts to expand satellite connectivity solutions for the automotive industry.

The system enables drivers and passengers to make voice calls through the BMW iX3's infotainment system, even in areas with limited or no cellular coverage. It combines Viasat's L-band satellite network and the NB-IoT communications protocol with QUALCOMM Incorporated's (QCOM - Free Report) Snapdragon Auto 5G Modem-RF Gen 2 solution and Fraunhofer IIS' AI-powered voice codec to deliver reliable voice services.

Built on Viasat's embedded eSIM capabilities, the solution supports the adoption of standards-based Non-Terrestrial Network (NTN) communications in vehicles. It can improve emergency communications and other connected vehicle services in remote areas. Viasat, along with BMW Group, Cubic3 and Fraunhofer IIS, continues to collaborate within the 5G Automotive Association to advance next-generation vehicle connectivity.

Ongoing development of 3GPP standards is expected to expand satellite capabilities beyond low-data-rate NB-IoT applications. Future 5G New Radio satellite services could enable higher-bandwidth features, including video streaming and seamless switching between terrestrial and satellite networks, positioning Viasat to capitalize on the growing connected mobility market.

How Are Competitors Advancing in the Automotive Industry?

Viasat faces competition from Nokia Corporation (NOK - Free Report) and Ericsson (ERIC - Free Report) . Nokia is expanding its automotive business with 4G and 5G connectivity solutions for vehicles. The company works with automakers to support software-defined vehicles and advanced in-car technologies. Rising demand for intelligent vehicle technologies could support Nokia's long-term growth in the automotive market.

Ericsson is strengthening its automotive presence through its Connected Vehicle Cloud platform, which enables global vehicle connectivity and digital services. The company helps automakers deliver over-the-air software updates, telematics and connected mobility applications. Ericsson’s automotive platform simplifies connectivity management across multiple network operators and regions.

Viasat's Price Performance, Valuation & Estimates

Viasat shares have skyrocketed 382.6% over the past year compared with the industry’s growth of 26.4%.

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From a valuation standpoint, Viasat trades at a forward price-to-sales ratio of 1.98, below the industry tally of 4.58.

Zacks Investment Research
Image Source: Zacks Investment Research

Earnings estimates for 2027 have decreased 67.7% to 20 cents over the past 60 days, while the same for 2028 has decreased 38.8% to 41 cents.

Zacks Investment Research
Image Source: Zacks Investment Research

Viasat currently carries a Zacks Rank #5 (Strong Sell). 

You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

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