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Investing.com - Raymond James has reaffirmed its view that satellite direct-to-device (DTD) technology does not pose a competitive threat to wireless networks and tower companies, according to a recent analyst report. The analysis comes as Viasat (NASDAQ: VSAT), a key player in the satellite communications sector with $4.56B in revenue, maintains a "GOOD" financial health rating according to InvestingPro data.
The investment firm emphasized that satellite DTD should be considered a complementary service rather than a replacement for terrestrial wireless infrastructure, particularly in areas where traditional towers are not economically viable.
Raymond James identified several significant limitations of satellite DTD technology, including capacity constraints, poor in-building performance, inherent latency issues, limited handset compatibility, and inferior overall customer experience compared to traditional cellular service.
The firm characterized satellite DTD as primarily a "roaming service for when wireless customers occasionally Go Off the Grid, or the Grid Goes Off of Them," suggesting minimal impact on tower companies even in rural areas.
Raymond James views the recent pressure on tower stocks following SpaceX’s $17 billion spectrum purchase from SATS approximately two weeks ago as a buying opportunity, maintaining that satellite technology will not emerge as a meaningful competitor to traditional tower infrastructure.
In other recent news, Viasat Inc. shareholders approved amendments to the company’s 1996 Equity Participation Plan and Employee Stock Purchase Plan during the annual meeting. These amendments include setting the number of shares available for future issuance at 6,410,000 and extending the period for granting incentive stock options by one year to 2035. Additionally, Viasat introduced its HaloNet portfolio, which offers modular capabilities for multi-orbit satellite communications, enhancing connectivity services for near-Earth communications. Meanwhile, James Dodd, Viasat’s Senior Vice President and President of Commercial Services, announced his retirement effective November 1, 2025, though he will remain with the company as a non-executive employee until the end of the year.
Furthermore, Pulsar International will deploy Viasat’s NexusWave connectivity solution across over 300 vessels, marking an expansion of their partnership. William Blair reiterated an Outperform rating for Viasat, emphasizing the potential value of its spectrum holdings in light of AT&T’s recent $23 billion spectrum acquisition. This development could lead investors to reassess Viasat’s valuation, considering its spectrum assets and defense business. These recent developments highlight significant strategic moves and leadership changes within Viasat.
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