Mike Crawford: Okay. Thank you. And then the follow-up question is relates to — you provided your potential satellite launch timeline? Is there any similar information you can give regarding Inmarsat?
Mark Dankberg: I think they don’t want to see information mostly available through their website. They do — they are launching one of their satellite another six satellite this month, but they had their follow-on satellites are probably a couple of years behind and I think there’s a gap for their I79 satellites.
Mike Crawford: Okay.
Operator: Our next question comes from the line of Caleb Henry from Quilty Analytics. Please proceed.
Caleb Henry: Hey guys. Question about the Link 16 business. So, I’m just curious if — even though the sale is done, if there is any opportunity for ViaSat to providing sort of state-based Link 16? Or did that all go away with the sale?
Mark Dankberg: The Link 16 specific businesses went with the sale. But we do have space contracts that cover a variety of range of communications, wave forms and data links. And we can include Link 16, as one of those waveforms in a multi-waveform space system. And we’re doing — as part of the sale, we’re providing a module to Inmarsat enable them to Link 16. So, we’ll have that — we’ll have common hardware for that application.
Caleb Henry: Okay. Does that mean there’s still opportunity for ViaSat to participate in the space development agencies constellation. I know that’s supposed to use Link 16? And then do you still have the satellite that you’re building with Blue Canyon or is that something that was sold as well?
Mark Dankberg: So, the existing contract that we had for XVI and FDA payloads did go with that business.
Caleb Henry: Okay.
Operator: Our next question comes from the line of Ryan Koontz from Needham & Company. Please proceed.
Ryan Koontz: Thanks for the question. Mark, thinking about how the IFC business scales here, apart from adding all the tremendous increase incapacity from ViaSat-3. What kind of key parts of the business do you think need to scale to address the global opportunity in terms of infrastructure, channel, support, those sorts of things as you think about taking that business global? Thanks.
Mark Dankberg: Sure. Yes. Well, I think 1 of the good things about what we’re doing with ViaSat-3 is we pretty much have all the business models for the businesses that we’ve already been doing well in place. So, at least in the — in residential or in rural in the countries in which we’ve been operating. We’ve set up business models where our ability to plug in more bandwidth is pretty straightforward. And I think that includes the in-flight connectivity space because we already have when we’ve done this pretty purposely — purposefully, but we have customers in Australia, Asia-Pacific, Latin America, Europe, that and Middle East already that we support with our full-service model. So, I think that, that’s one of the — so one of the things that’s most exciting about getting ViaSat-3 on a global basis is that it really is then we can just plug into existing models, especially in in-flight connectivity because that is really kind of a direct to airline business for us.
And I think we have a good go-to-market sales force that covers airlines all over the world. And we have the support infrastructure that we can leverage for that as well.
Ryan Koontz: Got it. That’s great. And just a quick question about the letter about your reallocation of capacity into IFC. How should investors think about the timeframe that it takes you to truly kind of reallocate it? Are we talking months, quarters to reallocate that capacity and move it into a particular new application?
Mark Dankberg: Okay. No, that’s a good question. So, as the airline business has grown, the main thing that we’ve done very careful and purposely is to understand what the traffic demand will be on a geographic basis and then also be able to gauge not only where the airplanes are the seats are going to be where, when, but also to match the expected bandwidth demand on each plane in each airline. So, that we have the sufficient bandwidth that is scaled to the demand on those planes. And that, when we do it, what we’ve had to do. I mean, I think it’s a choice that it’s a choice that we made deliberately. And I think it’s going to be good for the company, definitely been good for our IFC customers. I think it was weakest for shareholders is to plan ahead.
And what we’ve done is we’ve used natural churn on the residential business, that frees up bandwidth in places where we may need it. And those places where we won’t need it for IFC, then we can replace those customers with new customers. When we get ViaSat-3, problems could be way easier as we’ll have a lot of bandwidth everywhere, and we’ll just be able to add customers on both in-flight connectivity and in airlines and a few other businesses within the US that we think we can start and grow as well. But think of it as the reallocation process is really something we only have to go through when we’re full, right? When we have to allocate bandwidth because we don’t have enough to serve all the demand we could see in all the markets that we address, right?
It’s really a question of making choices about what we choose to serve, given all the demand that we see.
