Viasat Inc. (VSAT - Free Report) recently announced a new Master Agent agreement with Sandler Partners — the fastest growing connectivity and cloud services distributor in America. Notably, the deal will allow in excess of 7,000 sales partners of Sandler Partners to gain instant access to Viasat’s complete suite of business Internet services for primary and backup connectivity.
Viasat offers its business service in various unlimited and metered data plans, carrying download speed options in the range of 35 Megabits per second (Mbps) to 100 Mbps. With the Viasat satellite Internet service, businesses can gain access to a strong secondary connection for SD-WAN implementations.
Notably, this deal will enable Sandler Partners to offer Viasat’s high valued bandwidth service plans to businesses. With the announcement of the deal, Viasat reached about 95% of the channel partner sales community, thus strengthening its presence in the telecom channel.
Viasat’s Satellite Services business is progressing well with key metrics including steady growth of ARPU (average revenue per user) and revenues showing impressive growth. ARPU is increasing on the back of solid retail distribution network, which accounts for a growing proportion of high value and high bandwidth service plans subscriber base. The momentous market traction of ViaSat-1 and ViaSat-2 satellites, coupled with strategically planned ViaSat 3 satellites, are likely to provide the company with a solid competitive edge over its peers.
The company is eyeing opportunities to extend broadband satellite mobility to rotary wing aircraft, as it is a large addressable market that can emerge as a key profit churner. Further, growing adoption of in-flight Wi-Fi services in commercial aircrafts are proving conducive to the Satellite Services business’s growth.
In the past three months, this Zacks Rank #3 (Hold) stock has gained 2.7% against the industry’s decline of 11%.
However, the company operates in a highly competitive market, which includes stalwarts from varied industries. The company’s Satellite Services segment is affected by seasonality of demand due to traditional retail selling periods. Also, it anticipates incurring huge R&D expenses related to the commercial launch of Viasat-3 satellites.
Some better-ranked stocks in the same space are Ubiquiti Networks, Inc. , Juniper Networks, Inc. (JNPR - Free Report) and Harris Corporation . While Ubiquiti Networks sports a Zacks Rank #1 (Strong Buy), Juniper Networks and Harris carry a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Ubiquiti Networks surpassed estimates thrice in the trailing four quarters, the average beat being 11.30%.
Juniper Networks exceeded estimates in each of the trailing four quarters, the average beat being 10.99%.
Harris surpassed estimates in each of the trailing four quarters, the average beat being 7.06%.
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