ViaSat has been a key technology provider for virtually every form of satellite broadband system. But our initiative to transform satellite broadband — with a 10-times leap forward in satellite capacity — has created a stir in the satellite industry. The announcement of the first two satellites, ViaSat-1 and Ka-Sat, has influenced thinking and planning for satellite services around the world.

The Reasons Reflect Fundamental Changes in the Market

• In 2005 there were two classes of Internet traffic: Web browsing/e-mail/file transfer and peer-to-peer. Since then, the volume of video communications and other high-bandwidth media has increased by a factor of eight.

• Satellite has not been able to meet the rising demand. In the past three years, each gain in broadband satellite capacity was matched with a sharp spike in subscriber uptake. Then within months, capacity was sold out in key geographic areas, and subscriber growth flattened.

• Current satellite systems are not designed for video, photo sharing, VOIP and peer-to-peer networking. It is not just speed that customers want but more bandwidth volume. Distributors in the United States, Europe and every developed country identify abundant bandwidth as one of the most important customer satisfaction measures.

Our technology yields the greatest supply and lowest-cost satellite bandwidth in the world. It can lift the industry into a new level of competitiveness in meeting the inevitable growth in demand for higher volume broadband to carry the video and other rich media consumers crave. And we believe the same combination of high volume, low cost and better service will appeal just as much to defense, mobile and enterprise customers.

Economies of scale are key to success in consumer telecommunications mass markets. In satellite, low-cost broadband Ka-band bandwidth is the fuel that can make networks grow faster.

Continuing Our Growth as a Force in Government Satcom

For the first time this year, ViaSat broke into the Washington Technology "Top 100 Government IT Contractors", one of 22 new companies on the list, demonstrating the continuing growth opportunities for companies that bring value and new ideas to the market. A few key attributes make us optimistic that we can extend this record of growth.

An Expanding Future Demand for What We Do

A recent Frost & Sullivan report predicts stable level of defense procurement outlays through 2013 and also notes several procurement trends that play to our strengths:

• Implementation of commercial products to save costs and shorten acquisition cycles, rather than major new R&D programs.

• Focus on Navy, Marine and Army communication and information system upgrades.

• Increased emphasis on special operations.

ViaSat connects people to today’s new communication applications when terrestrial networks are not practical or cost-effective.

Unique Interplay between Our Business Areas to Serve Both Government and Commercial Customers

Few companies can match the way our people and products easily shift between commercial and government applications. For example, our commercial LinkWay® system has been parlayed into the EBEM and JIPM modems, new military satcom standards for high-speed communications.

Building the Company to Take On Larger, More Complex Projects

Complementing our technical expertise, our strong business organization can win, plan, develop and execute programs on a scale that we could not just a few years ago. That also makes ViaSat more attractive to the brightest new talent who want to take on cutting-edge, complex projects.

Skyrocketing Demand for Abundant Bandwidth Drives Everything We Do

In addition to satellites and ground system technology, our technical staff focuses on this challenge from many other angles. Data processing and acceleration techniques, more efficient antenna technologies, creative waveforms, adapting open standards, and software-driven products all give customers the ability to do more with less bandwidth.