Also purchasing ground systems, network operations service, and ViaSat Broadband System terminals
Carlsbad, Calif. Xplornet Communications Inc. has contracted with ViaSat Inc. (NASDAQ:VSAT) for all of the residential capacity covering Canada on the ViaSat-2 satellite. Already offering high-speed satellite Internet on ViaSat-1, Xplornet will be able to offer faster speeds and more data throughput for its customers with the doubling of bandwidth efficiency expected from ViaSat-2, which is scheduled for a mid-2016 launch. The commitment is for the life of the satellite and the value is up to $275 million depending on options.
In addition to bandwidth capacity for ViaSat-2, Xplornet is purchasing network operations, annual network maintenance, gateways, and ground equipment. The contract also allows Xplornet to order ViaSat Broadband System subscriber terminals.
"We are delighted to expand our relationship with ViaSat, said Allison Lenehan, president of Xplornet Communications Inc. Our investment in the ViaSat-2 satellite will allow Xplornet to meet the future Internet needs of our rural customers throughout the country.
The Xplornet team has performed exceptionally in Canada and we are very happy to extend our relationship with them on ViaSat-2, said Rick Baldridge, president and COO of ViaSat. Our new satellite is expected to approximately double the bandwidth economics of ViaSat-1 while simultaneously providing a coverage footprint that is seven times larger.
Boeing Space & Intelligence Systems is building ViaSat-2, which is based on ViaSat's next generation, Ka-band satellite technology and architecture. ViaSat-2 is expected to be, by far, the world's highest capacity satellite at the time of launch, achieving an unparalleled mix of capacity and coverage. The new satellite is expected to approximately double the bandwidth economics of ViaSat-1 while simultaneously providing a coverage footprint that is seven times larger. The expected coverage area for ViaSat-2 includes North America, Central America, the Caribbean, a small portion of northern South America as well as the primary aeronautical and maritime routes across the Atlantic Ocean between North America and Europe.
ViaSat-1 is recognized as a disruptive force in satellite broadband, earning a Guinness World Records title as the world's highest capacity communications satellite. A February 2013 FCC report showed ViaSat's Exede U.S. satellite Internet service provider was outperforming all other ISPs in delivering promised speeds to subscribers. The report revealed that 90 percent of Exede subscribers were receiving 140 percent or better of the advertised 12 Mbps speed during peak periods a major shift from the previous generations of satellite Internet service, which were considered to be a last resort for those with no other Internet alternative.
The ViaSat-2 system also includes significant enhancements to the ViaSat Broadband System networking technology and is designed to multiply the speeds offered to a level commensurate with high-speed fiber-to-the-node networks (FTTN).
About Xplornet Communications Inc. (www.xplornet.com)
Xplornet Communications Inc. is Canadas largest rural broadband service provider. We believe everyone should have access to the transformative benefits of broadband, so we make our service available everywhere in Canada, including the hard to reach places. We overcome the challenges of Canadas vast geography through our deployment of Canadas first national 4G network, which leverages our hybrid technology network of fixed-wireless towers on the ground and next-generation satellites in space. Our customers live in towns, villages, just outside of major urban centres and in the farthest reaches of the country. Through our coast-to-coast network of local dealers and professional installers we connect our customers to all that the Internet has to offer. Xplornet is high-speed Internet - for all of Canada.
Safe Harbor Statement
This press release contains forward-looking statements that are subject to the safe harbors created under the Securities Act of 1933 and the Securities Exchange Act of 1934. Forward looking statements include statements about Xplornet's ability to offer improved services, the expected bandwidth economics and efficiency, anticipated speeds, coverage area, and the expected launch date of ViaSat-2.
Readers are cautioned that actual results could differ materially from those expressed in any forward-looking statements. Factors that could cause actual results to differ include: the ability to realize the anticipated benefits of the ViaSat-2 satellite, unexpected expenses or delays related to the satellite system, the ability to successfully implement ViaSat's business plan for broadband satellite services on ViaSat's anticipated timeline or at all, including with respect to the ViaSat-2 satellite system; risks associated with the construction, launch and operation of ViaSat-2 and ViaSat's other satellites, including the effect of any anomaly, operational failure or degradation in satellite performance; negative audits by the U.S. government; continued turmoil in the global business environment and economic conditions; delays in approving U.S. government budgets and cuts in government defense expenditures; ViaSat's reliance on U.S. government contracts, and on a small number of contracts which account for a significant percentage of ViaSat's revenues; the ability to successfully develop, introduce and sell new technologies, products and services; reduced demand for products as a result of continued constraints on capital spending by customers; changes in relationships with, or the financial condition of, key customers or suppliers; reliance on a limited number of third parties to manufacture and supply ViaSat's products; incr
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Also purchasing ground systems, network operations service, and ViaSat Broadband System terminals
