KVH awards contract for expansion of ArcLight broadband network to near global coverage by late 2009

ViaSat Inc. (Nasdaq: VSAT) has signed a new 10-year agreement with KVH Industries Inc., (Nasdaq: KVHI) to establish a global Ku-band mobile broadband network using ViaSat-patented ArcLight^® technology. The agreement includes an initial purchase by KVH of three ArcLight hubs with options for more hubs as the network expands. The new contract will enable network expansion that builds on the already successful satellite networks serving business jets, maritime vessels, and ground vehicles in North America, the Caribbean, the North Atlantic, and Europe. Under the agreement, ViaSat will provide network operation services, managing satellite access and seamless roaming for the ViaSat hubs, and also share in the service revenues.

Together, ViaSat and KVH will establish ArcLight spread spectrum mobile broadband networks in a series of new regions. The coverage expansion is scheduled to begin in the fourth quarter of 2008. KVH will be the global provider for maritime service while ViaSat will provide products and satellite network services into aviation markets worldwide.

“This strategic expansion of our network can provide our airborne broadband customers an affordable global extension of their office with access to broadband data, voice and entertainment services virtually anywhere they fly,” said Brandon Nixon, ViaSat senior vice president. “In addition, our collaboration with KVH over the last two years has allowed our two companies to create a unique offering for the maritime industry, one that changes the equation in terms of what people can expect in performance and costs. With a variety of platforms on the network, we’ll be able to add to our installed base and build out our network offerings for the long term.”

“Expanding our mini-VSAT Broadband service to provide seamless coverage for maritime broadband communications is one of our top priorities,” said Martin Kits van Heyningen, KVH chief executive officer. “Our new service offers customers predictable, fixed airtime rates that are significantly less expensive and much faster than alternative maritime communications from Inmarsat. We feel the lower airtime rates combined with antennas that are 85% smaller and significantly less costly than traditional VSAT products will help the market grow beyond the small number of very large vessels using maritime broadband services. At the same time, this expansion positions KVH to earn revenue not only from the maritime service, but on aeronautical applications that roam throughout our service areas.”

Forward-Looking Statements

Portions of this release, particularly statements about network expansion, near global coverage, the role of ViaSat and KVH in cooperating and establishing networks, the sale of ViaSat equipment and services, the sharing of service revenues, and the performance and deliveries of ViaSat products and technology contain forward-looking statements regarding future events and are subject to risks and uncertainties. ViaSat wishes to caution you that there are some factors that could cause actual results to differ materially, including but not limited to: contractual problems, product defects, manufacturing issues or delays, regulatory issues, technologies not being developed according to anticipated schedules, or that do not perform according to expectations; and increased competition and other factors affecting the telecommunications industry generally. In addition, please refer to the risk factors contained in ViaSat’s SEC filings available at www.sec.gov, including without limitation, ViaSat’s annual reports on Form 10-K and ViaSat’s quarterly reports on Form 10-Q. Readers are cautioned not to place undue reliance on any forward-looking statements, which speak only as of the date on which they are made. ViaSat undertakes no obligation to update or revise any forward-looking statements for any reason.

Comsat Labs and Comsat Laboratories are tradenames of ViaSat, Inc. Neither Comsat Labs nor Comsat Laboratories is affiliated with COMSAT Corporation. “Comsat” is a registered trademark of COMSAT Corporation. All additional products are trademarks of their respective owners.

« Back to news archive