Global broadband services and technology company,ViaSat Inc. VSAT, has signed an agreement to offer new Wi-Fi service plans to the North Carolina Department of Transportation (NCDOT) Rail Division. The service will cater to the Piedmont railway passengers traveling between Raleigh and Charlotte, NC.
Passengers will now be able to enjoy faster speed and more options when surfing the web, engaging in social media, checking and responding to email and staying connected while traveling, thanks to the tiered new service plans.
ViaSat has assisted NCDOT to launch their wireless Internet services onboard the Piedmont Rail earlier; and the new service will enable it to deliver a more consistent Wi-Fi experience with higher speed. ViaSat managed Wi-Fi services include end-to-end management of Wi-Fi networks, right from network design, installation and reporting to monitoring and end-user support.
Earlier this month, ViaSat and its long-time partner – Eutelsat – signed an agreement to provide in-flight Wi-Fi services with Finnair. The contract entails the installation of a high-speed wireless Internet network on the airline’s entire Airbus A320 series short-haul fleet flying in Europe.This followed a similar contract with EL AL Israel Airlines, which is currently in the customer trials phase, and is scheduled to enter full retail service by the end of this year.
ViaSat has, to date, installed its system on about 500 commercial airplanes. This figure includes most of the United Continental Holdings, Inc.’s UAL Boeing 737 fleet as well as the JetBlue Airways’ aircraft.
ViaSat has been rapidly expanding its Wi-Fi business. In June, the company secured a contract to provide internet access on 100 new American Airlines Group AAL planes. The company is also reportedly supplying Wi-Fi to Air Force One and other government aircraft.
Further, ViaSat recently inked a multi-year agreement with leading aerospace company – Dassault Aviation – to deliver advanced Internet and corporate network access to operators. In addition, ViaSat secured a deal in February to deliver Wi-Fi services to the domestic fleet of Qantas Airways.
We believe that the company’s significant contract wins will boost its leading position in end-markets, allowing it to gain a competitive edge over its peers.
ViaSat expects robust growth as it capitalizes on its competitive advantage and sturdy demand for its highly cost-effective satellite bandwidth products. The company projects strong growth opportunities in satellite services and government systems segments, which are expected drive top-line growth in the coming quarters.
ViaSat currently carries a Zacks Rank #3 (Hold). A better-ranked stock in the same space is Clearfield, Inc. CLFD, holding a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
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