VZ - Satellite Internet At The Fore With Viasat And Starlink

• The Ukraine conflict has enabled Viasat and Starlink to provide a new perspective on the agility and lower costs of satellite-based internet services compared to technologies like fiber and mobile cellular.
• These two companies compete with each other, but Viasat is winning contracts for airlines' IFC connectivity systems used by passengers to access Wi-Fi while Starlink has seen success in Europe.
• Viasat is growing rapidly and is profitable, but costs are also rising, with the last reporting quarter showing a fall in cash from operations.
• Learning from Starlink, there is scope for Viasat to improve gross margins through more software usage, in addition to the more profitable LEO-to-GEO relays as its business expands.
• In a market where profitability and cash flow metrics matter, Viasat is a reasonable buy, while Starlink's IPO could be imminent, as Elon Musk needs money for the Twitter deal.

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