China In-Flight Connectivity Technology Conference: ICT 2019 -- Viasat Inc.(NASDAQ: VSAT), a global communications company, and China Satellite Communications Co., Ltd. (China Satcom), today announced an agreement for a strategic partnership to jointly provide in-flight connectivity (IFC) services within China for domestic and international airlines.
Viasat and China Satcom will work in partnership to enable Viasat's global airline customers to have roaming connectivity when flying over China; provide IFC service to domestic flights within China; and enable Chinese airlines to roam onto Viasat's global network. China Satcom is a licensed telecommunications service provider in China and also owns and operates the most capable and extensive Ka-band spotbeam satellite system in China, which is the only Ka-band system currently available for IFC service in the country.
A key international destination for leading global airlines, China is the second largest aviation market in the world according to research from the International Air Transport Association. As one of the fastest growing flying populations globally, and one of the most mobile and digitally-enabled, there is tremendous national interest in high-speed, high-quality IFC on flights in country. Yet today only about four percent of flights within China are connected.
"Our agreement with China Satcom is a significant step towards realizing a seamless global community of high performance IFC. China Satcom is now the only satellite operator and licensed service provider in China with the bandwidth resources to deliver the in-flight experience our airline customers have come to expect and depend on," said Don Buchman, vice president and general manager, Commercial Aviation, Viasat. "Our partnership is a natural way to extend state-of-the-art services specific to China Satcom's fleet and the China domestic market, and create a global roaming alliance for our existing and new domestic and international customers and the rapidly growing Chinese global commercial airline fleet. We are honored to work with China Satcom in China to make IFC-at-scale a reality."
Viasat and China Satcom will jointly develop and share in future China-based IFC business.
Per the terms of the agreement, each company will maintain its own intellectual property and will operate its equipment using a multi-layered approach to network services. This agreement specifically covers commercial aviation IFC, but could extend into the development of new connectivity applications for other ancillary markets in China. Financial terms of the agreement are not being disclosed.
Source: ViaSat, Inc.
Date: Apr 24, 2019