Viasat Expanding Satellite Wi-Fi Hotspots In Mexico To Bridge Digital Divide

Five years ago, Viasat broke into the satellite Wi-Fi business by delivering fast in-flight internet to passengers on commercial airlines, with 1,000 planes flying today with its technology. Two years ago, the Carlsbad company began building Wi-Fi hotspots in rural communities in Mexico, bringing internet connectivity within walking distance of 1 million people.

Now Viasat is pushing satellite Wi-Fi hotspots into cities in Mexico — particularly neighborhoods that lack wired infrastructure or reliable cellular service.

Viasat Urban Wi-Fi is being rolled out in Mexico City this month. Several other cities are slated to get the service next year, including Tijuana, Cabo San Lucas, Guadalajara, Guanajuato, Puebla and Veracruz.

“What we have seen with our community Wi-Fi service, which is mainly in rural areas, is that there are a lot of places closer to cities in Mexico where infrastructure isn’t fully developed, particularly in more economically challenged areas,” said Kevin Cohen, Viasat’s manager for Mexico.

Viasat aims to help close that digital divide. Its prepaid Wi-Fi hotspots serve up as much as 100 megabits per second internet speeds at prices as low as 50 cents per hour, depending on the region, said Cohen.

“It is one of the hottest topics out there — digital inclusion and how disadvantaged people are if they don’t have access to the internet,” said Mark Dankberg, Viasat’s chief executive. “The thing that is exciting about what we can do is for a couple thousand dollars (in equipment), we can provide really good connectivity. With an investment of that size, you don’t need a lot of money to get a reasonable return.”

Consumers buy access based on the amount of time they’re online or the amount of data they use. Additional options, such as application-specific plans, are being developed.

Viasat is delivering the broadband from its new ViaSat-2 satellite. Launched last year, ViaSat-2 expanded the company’s geographic footprint to beyond the U.S. and into Mexico, Central America and parts of South America.

“Mexico is an obvious place for us to start, but we are planning to expand into other places in Central America and the Caribbean,” said Dankberg.

Viasat acquired Wi-Fi hotspot managed services firm NetNearU in 2014 to expand its Wi-Fi capabilities. NetNearU manages 14 million hotspots in nearly 30 countries.

In the U.S., Viasat sells satellite broadband mostly to individual homes and businesses outside the reach of cable, with plans ranging from $70 to $150 per month.

But in Mexico, the company has focused on Wi-Fi hotspots. Viasat typically partners with a community store or other locale to install a satellite dish and related equipment. When people want to get online, they purchase a pin code from the store to connect their smartphones or computers.

The time frame for bringing Wi-Fi hotspots to Tijuana hasn’t been pinned down yet, said Cohen.

In addition to Wi-Fi hotspots, Viasat said in September that it will supply in-flight Wi-Fi to 18 new commercial jets that Boeing is building for Aeromexico, with an option to add 60 more aircraft.

Viasat also has entered into an agreement with Ubix, a telecommunications services provider, to sell and install equipment for Viasat’s broadband satellite internet for businesses throughout Mexico. – Herald Courier