VSAT's NexusWave to Enhance Maritime Connectivity: Stock to Gain?

Inmarsat Maritime, a subsidiary of Viasat Inc. VSAT, recently announced that Caribe Tankers USA, Inc. (“CTU”) will trial its fully managed bonded connectivity service, NexusWave, on board two of CTU’s chemical tankers, Caribe Maria and Caribe Luna. The move supports the U.S.-based shipping company’s effort for building a more resilient and high-performance communication system, capable of meeting the evolving broadband demands. 

Inmarsat’s NexusWave integrates Global Xpress Ka-band, low-Earth orbit services and coastal Long-Term Evolution networks, with an additional layer of L-band for resilience, ensuring fast and reliable connectivity. Powered by an innovative network-bonding technology and intelligent orchestration of a multi-dimensional network, this unified service provides high-speed Internet access regardless of location, eliminating the need for multiple disjointed solutions traditionally used in complex maritime operations.

As maritime workforces become more digitally connected, the need for fast, stable Internet is critical not only for operations but also for crew welfare. With NexusWave, vessels maintain uninterrupted Internet access whether in the middle of the ocean or docked at a bustling port. The seamless connectivity supports CTU’s broader goal of offering a more connected, home-like experience at sea, which is key to attracting and retaining skilled maritime professionals.

Will VSAT Stock Benefit From This Collaboration?

Inmarsat is a global leader in delivering innovative and reliable mobile communication services worldwide. The buyout of the company in 2023 has immensely strengthened Viasat’s portfolio, diversifying its service offerings and accelerating global expansion. One of the key features of NexusWave is its future-proof design. It is set to incorporate the next-generation ViaSat-3 Ka-band service, anticipated to be operational in 2025. This integration will further boost its capacity and speed, keeping pace with the evolving demands of maritime operators. 

This collaboration with CTU underscores the growing need for more advanced, bonded connectivity systems. The service will not only offer unmatched speed and reliability but also simplify fleet management by providing a single, trusted service tailored specifically for maritime environments. Furthermore, shipping operators will gain a robust foundation for connected operations, regardless of fleet size or the nature of their operations. All these advancements augur well for Viasat’s long-term growth.

VSAT Stock Price Performance

Shares of Viasat have plunged 45.1% over the past year against the industry’s growth of 48.3%.

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VSAT’s Zacks Rank and Other Stocks to Consider

Viasat currently carries a Zacks Rank #2 (Buy). 

Some other top-ranked stocks in the broader industry have been discussed below.

InterDigital IDCC sports a Zacks Rank #1 (Strong Buy) at present. You can see the complete list of today’s Zacks #1 Rank stocks here.

In the trailing four quarters, InterDigital delivered an earnings surprise of 158.41%. The company is a pioneer in advanced mobile technologies that enable wireless communications and capabilities.

InterDigital designs and develops a wide range of advanced technology solutions, which are used in digital cellular, wireless 3G, 4G and IEEE 802-related products and networks.

CommScope Holding COMM currently flaunts a Zacks Rank #1. It has a long-term growth expectation of 19.37%.

Headquartered in Hickory, NC, CommScope is a premier provider of infrastructure solutions, including wireless and fiber optic solutions, for the core, access and edge layers of communication networks. Since its inception in 1976, the company has created a niche market for itself, helping customers scale network capacity, delivering better network response time and performance, and simplifying technology migration. CommScope currently operates in three segments — Connectivity and Cable Solutions, Networking, Intelligent Cellular and Security Solutions and Access Network Solutions.
 
United States Cellular USM sports a Zacks Rank of 1 at present. In the last reported quarter, it delivered an earnings surprise of 150%.
U.S. Cellular has taken concrete steps to accelerate subscriber additions and improve churn management. The company aims to offer the best wireless experience to customers by providing a superior-quality network and national coverage. U.S. Cellular is well-positioned to support the investment required for network enhancements, including the deployment of 5G technology.

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This article originally published on Zacks Investment Research (zacks.com).

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