Ryan Koontz: It does. Thanks Mark. That’s all I have.
Operator: Our next question comes from the line of Louie DiPalma from William Blair. Please proceed.
Louie DiPalma: Mark, Rick, Shawn, Robert and Peter, good afternoon.
Mark Dankberg: Hey Louie.
Louie DiPalma: Following up on Landon’s question. does ViaSat have a product/antenna to provide IFC on regional jet aircraft, such as CRJ700s and ERJ175s. I know that you provide connectivity for JetBlue’s larger ERJ190s, but do you have a smaller antenna for the smaller regional jet aircraft?
Mark Dankberg: Right now, well, a lot of it really depends on the operating model of the airline and the exact type of aircraft that they have. But I think from a commercial business from a commercial business get, probably the E190 is the smallest that we currently have at any kind of scale.
Louie DiPalma: Okay. Are you ruling yourself out then for Delta’s regional jets?
Mark Dankberg: No, no. I think we have airline products that we’re developing that will go down to smaller planes. We certainly do that. We sort of smaller aircraft with that our business gets or others. It’s really a question of coming up with something that amounts well and economically for the specific types that our customers want. And so we are working on more fuselage now did antennas for those smaller class of aircraft.
Louie DiPalma: Sounds good. And for the government encryption business, has ViaSat received the product certifications that were previously delayed? And are you out of the woods there?
Mark Dankberg: Pretty close. The government — so the issue is they haven’t been issuing certifications across a range of products for the reasons that they know that they have. But there’s customer demand for — especially for a number of our products. And so the kind of evaluated that demand relative to what their certification guidelines are and will be, and they’ve informed us that they expect to issue those certifications later this month. That’s what we can make.
Louie DiPalma: Thanks. Great. And One for Shawn, how should we think about the customer premise equipment, CapEx and OpEx costs for ViaSat-3 residential customers when you deploy the new terminals?
Shawn Duffy: Okay. So, I think what I would think about the — on the customer premise equipment. Similar, there’s a couple of parts. So, similar to prior years in the early onset right? Those costs are a little higher because it’s all brand-new equipment. And then as we have natural turnover in the basin, we get kind of a refer pool and the costs tend to come down over time. The ramp that we have next year when you’re thinking about the quantum or the mix of CapEx, I mean, that’s going to go up significantly year-over-year. You think of that as about 3x what it is to this year. So, that gives you just an — we’ll have significant investments in that bucket. On the OpEx side, it’s primarily I mean we have advertising that you’ll definitely feel in the front end as we’re starting to prepare for service launch and marketing of our new plans.
You’ll see those coming in as part of the EBITDA margins in the front end. But I think with respect to the other components of acting, just to remind people, as we look to next year, our full year of ViaSat-3, for example, operating expenses on the ground. We’ve been talking about that through this year. This year kind of scaled to about the $50 million mark. Next year, we’ll have the full weight of theViaSat-3 ground, and then obviously, we’ll be scaling our revenues on that. We’ll still be building out EMEA and APAC. So, you can think of that number is going to about 85%. So those are kind of some components of some of the capital OpEx.
Louie DiPalma: Sounds good. And is there any type of like a benchmark in terms of like for every customer, should there be like $200 of CapEx associated with the customer premise equipment or any other type of round numbers there?
Mark Dankberg: Well, we’ve had — typically, when we go out with, as Shawn said, with the new generation of satellite, I think $800-ish numbers for — be it depends on the — it’s a blend of advertising, commissions, equipment installation, it’s all those factors. And it won’t be — it likely won’t be markedly different. The mix of those costs will depend on what the demand is and what we can support in each region. But that’s kind of not opening — it could be a little. I think at the beginning, China is a little.
Shawn Duffy: beginning with the advertising, but I think–
Mark Dankberg: And then it can come down $100 to $200 as it matures.
Shawn Duffy: Yes. And we get that refer pool as well.
Louie DiPalma: Okay. And as it relates to the ViaSat-3 EMEA launch that is targeted for September. I mean you mentioned how it’s with United Launch Alliance. Is that what their new Vulcan Centaur rocket?
Mark Dankberg: No, that’s an Atlas launch. It will be at or their last Atlas launches.
