WEBULL

Could Viasat’s (VSAT) Satellite 5G Joint Venture Reshape Its Competitive Edge in Global Connectivity?

Simply Wall St · 09/23/2025 19:04
  • Earlier this month, Space42 and Viasat announced plans to form Equatys, a joint venture designed to deliver global 5G Direct-to-Device satellite services leveraging multi-orbit networks and harmonized MSS spectrum across more than 160 markets.
  • This collaboration, alongside Inmarsat Maritime’s agreement with Pulsar International to equip over 300 vessels with NexusWave connectivity, highlights accelerating adoption of secure, high-speed satellite communications in both terrestrial and maritime markets.
  • We'll explore how Viasat’s new 5G satellite venture with Space42 could impact its investment outlook and long-term growth opportunities.

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Viasat Investment Narrative Recap

To be a shareholder in Viasat, you need to believe in the necessity, and eventual profitability, of large-scale, secure satellite communications in a world demanding constant connectivity. The recent Equatys venture with Space42 marks progress toward global 5G Direct-to-Device coverage, offering potential for margin improvement and a broader customer base, but the immediate impact on capital pressures and free cash flow remains limited, with ongoing heavy investment still presenting the biggest risk.

The announcement of Pulsar International and Inmarsat Maritime rolling out NexusWave across over 300 ships is a clear sign of increasing demand for secure high-speed satellite connectivity at sea. This expansion aligns with the industry trend toward hybrid, interoperable networks, but it does not materially reduce the urgency of Viasat’s need to manage capital intensity as it scales up global infrastructure.

However, investors should be aware that as Viasat pushes for global coverage, the risk of ongoing heavy capital requirements and...

Read the full narrative on Viasat (it's free!)

Viasat's narrative projects $5.0 billion revenue and $534.2 million earnings by 2028. This requires 2.9% yearly revenue growth and a $1.13 billion increase in earnings from the current -$598.5 million.

Uncover how Viasat's forecasts yield a $24.29 fair value, a 19% downside to its current price.

Exploring Other Perspectives

VSAT Community Fair Values as at Sep 2025
VSAT Community Fair Values as at Sep 2025

Ten individual fair value estimates from the Simply Wall St Community span US$8.40 to US$112.88 per share, revealing broad differences in long-term outlooks. Despite positive signs for global expansion, substantial and ongoing capital expenditures could continue to weigh on near-term earnings, so make sure you consider several viewpoints.

Explore 10 other fair value estimates on Viasat - why the stock might be worth less than half the current price!

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.