Louie DiPalma: Okay. And one final question. This is a bit more speculative, but following up on Ric’s question as it relates to satellite direct to device. Would it be possible for you to partner with SpaceX in the future, you used to have an antagonistic relationship with Inmarsat, but now you are merging with them, so things moved over. But is there a scenario in which you could lease a portion of Inmarsat L-band spectrum to SpaceX and partner with them for a direct to handset effort? Or are you committed to like launching and operating your own constellation in a vertically integrated manner?
Mark Dankberg: So, it’s a good question. I think that in general, we’re — a lot of our value add is in the space systems that we can put together. And so that’s still at the end, in dealing with — any other prospective partner it would just be an economic trade about what’s the nature of the partnership, who provides, which resources or capabilities. But personally, we don’t rule out partnering with anybody. So, we do — I think we’ve shown that we can really add value in the space architectures more than we could just in lease fees for spectrum as an example. We never say never.
Louie DiPalma: Yes, thanks. That’s all that I have. Thanks everyone.
Mark Dankberg: Thanks Louie.
Operator: Our final question comes from the line of Landon Park from Morgan Stanley. Please proceed.
Landon Park: Thanks for taking a follow-up guys. Just a quick one on the TDL prices, are you guys planning to use that to pay down any debt or anything? Or are you going to keep it as a buffer? Are you still playing with draw on your Inmarsat financing at the close of that transaction? Or is this replacing that in some way, just — around those items?
Shawn Duffy: Hey Landon, this is Shawn. So, — we definitely on the — when we got the proceeds when we take down on our revolver. So, we did do that right now, I say with the backdrop of the, the credit markets and our 2025. We can counting a little extra liquidity makes sense. And with respect to the transaction, I would say it gives us a lot of agility. So, we haven’t made any commitment there.
Landon Park: Is there any reason you wouldn’t want to tack that financing given the attractive rates that have struck at?
Shawn Duffy: Yes, I mean I definitely think that we look at the transaction and look at the full-on lens of the capital structure, and I agree with you that where we are today is in a good position there, but we need to take that into consideration overall. But our intention is to be able to be sure we’re in a good position with the right capital structure for the financing of the transaction.
Landon Park: Understood. And then just one for you, Mark, as well. On the ViaSat-3 as we look forward to that, you guys in the letter talked a lot about the enhanced flexibility of that satellite capabilities. When we think about the gross capacity of the ViaSat-1 and 2, can you comment on what the utilization rate on that gross capacity has ended up being now that those assets are stabilized and what that can look like for ViaSat-3 asset?
Mark Dankberg: Okay. So, first of all, it’s a really good question. It’s a complicated question because different — I mean, you’ve probably seen sort of what they call busy hour demand curves from cable companies or others that are in the home residential business. And what you’ll see, for instance, there is let’s say, from like 6:00 p.m. to 11 P.M. or midnight, you see very intense usage and then it can fall off pretty significantly overnight and maybe a little peak in the morning hours and then not so much in the daytime, the low peak when kids get home from school. You’ll see — example of a utilization curve that would be that would be common to all the users in, let’s say, give a time home, right, and that have common applications like residential.
So, if you look at in-flight what you’ll see is when you look at it, let’s say, when you look at it geographically, for Delta, this was an example similar for American and United other major carriers is when they have a hub, if you looked at the sort of the same type of chart, as I described it residential, what you’ll see is very high usage when a lot of airplanes and people are in those geographic areas around those hub airports. And lesser usage in between, certainly doesn’t go to zero. There’s different airlines with different schedules. But you’ll see these pronounced peaks. And so when you think about utilization, one of the issues is if you have capacity that’s not flexible or if you have satellites that only have views or fixed coverage over specific areas and can’t move it around, your utilization tends to reflect the demand in each of those areas when you combine a weighted combination of those markets.
But when you look at those — when you look at those at times when it’s not very well-utilized, the thing that ViaSat-3 lets us do is move back in with somewhere else. That’s the thing that’s really, really unique and doubt about it. We can move it somewhere else, pretty far away so far and not a way where we get — take advantage of time zone effects or far of where we can take advantage of different connecting times at different airports as an example. And then we’re also looking to do similar things with other mobile markets, including land, mobile, and maritime. So what that — what we think that’s going to let us do is get pretty meaningful increases in utilization in these high-demand areas. And kind of the way — I think the way to think about it is, especially from a capital efficiency perspective, this is one of the things we try to put together and show investors is — if you think of demand, the demand on the ground or in the air, it’s really a property of who your customers are and your space systems and the failure modes or the congestion that occurs tends to be in hot spots.
And so by being able to move bandwidth around what we think is we can do a way better job of serving hotspots than other space systems. That’s what we’re working on. It’s a really optimization problem. But I think the economic payoffs are going to be significant. Does that answer your question?
Landon Park: It certainly provides color. I guess — I mean, I’d love if you could provide more specificity.
Mark Dankberg: Number, do you want a number?
