Viasat Selected for $4.8B Ceiling NASA Near Space Network Services Contract
Rhea-AI Summary
Viasat (NASDAQ: VSAT) has been selected by NASA as one of four commercial companies to support the Near Space Network (NSN) Services contract, a five-year IDIQ program with a potential five-year extension and total value of $4.82 billion.
Initially, Viasat will provide global ground segment support services through its Real-Time Earth (RTE) Ground-Segment-as-a-Service network, offering multi-gigabit per second downlinks across six continents. The company has partnered with ATLAS Space Operations and Alaska Satellite Facility to deliver a modern satellite ground network.
The contract aims to provide commercial ground and space relay services for NASA missions from low Earth orbit to two million kilometers from Earth. Currently, NASA uses commercial providers for about 36% of its direct-to-Earth services, indicating significant growth potential. The contract aligns with NASA's strategy to leverage commercial capabilities for mission communications and navigation requirements.
Positive
- Selected as one of four companies for NASA's $4.82B ceiling contract
- Global presence across six continents with multi-gigabit per second downlink capabilities
- Significant growth potential as NASA currently only uses 36% commercial providers
- Strategic partnerships with ATLAS Space Operations and Alaska Satellite Facility
Negative
- Initial scope to ground segment support services
- Contract value shared among four companies
Insights
The $4.82 billion NASA NSN Services contract represents a pivotal shift in space communications infrastructure and a significant revenue opportunity for Viasat. The contract's structure, allowing for task orders across a 5-year period with a 5-year extension option, provides substantial long-term revenue visibility. Viasat's Real-Time Earth network offers important technological advantages with multi-gigabit downlink capabilities and presence across six continents. The current 36% commercial utilization rate for NASA's direct-to-Earth services indicates massive growth potential as NASA transitions away from legacy systems.
The integration with ATLAS Space Operations and Alaska Satellite Facility creates a robust network-of-networks architecture, positioning Viasat competitively among the four selected providers. The company's Ka-band network capabilities and planned L-band expansions align perfectly with NASA's modernization objectives. For a company with a market cap of
The IDIQ contract structure requires careful analysis beyond the headline
The timing is particularly advantageous as NASA's commitment to stop onboarding new TDRSS users as of November 2024 creates urgency for commercial solutions. For investors, this represents a clear path to recurring revenue growth through task orders, enhanced by the potential for scope expansion beyond initial ground segment support services. The contract's alignment with NASA's commercial integration strategy suggests strong potential for sustained long-term business development.
Viasat will join other commercial companies supporting NASA with connectivity for future missions under the five-year indefinite delivery, indefinite quantity award
CARLSBAD, Calif., Jan. 21, 2025 (GLOBE NEWSWIRE) -- Viasat, Inc. (NASDAQ: VSAT), a global leader in satellite communications, announced today it was selected by NASA to support the agency’s direct-to-Earth (DTE) capabilities via the Near Space Network (NSN) Services contract, part of a five-year multi-award indefinite delivery, indefinite quantity (IDIQ) contract program with an option to extend five years at a total cumulative value of
The NASA NSN Services contract will provide commercial ground and space relay services for future NASA missions from low Earth orbit (LEO) to two million kilometers from Earth. As part of the contract, Viasat’s Defense and Advanced Technologies (DAT) business will join other commercial providers in supplying DTE connectivity to current and planned NASA space missions. In 2023, NASA reported it satisfies about
Viasat will support NASA communications with its global Viasat Real-Time Earth (RTE) Ground-Segment-as-a-Service (GSaaS) network, providing LEO missions with a resilient and high-throughput satellite to ground communications solution. Viasat has teamed with ATLAS Space Operations, leveraging their Freedom Ground Software as a Service and Global Federated Network, and the Alaska Satellite Facility (ASF) to provide NASA with a modern, highly capable, and geographically diverse satellite ground network. The Viasat RTE network is capable of multi-gigabit per second downlinks over a hybrid network-of-networks with a footprint across six continents, allowing NASA to significantly increase its daily opportunities to downlink information and support the timely delivery of mission critical data. Viasat’s integrated RTE network capability will offer modern ground advancements in artificial intelligence, machine learning, and cloud-based optimization, as well as the benefits of a resilient and scalable ground network solution.
“Viasat is thrilled to be selected by NASA to support NSN Services for critical mission needs,” said Kent Leka, Vice President and General Manager of Antenna Systems at Viasat. “From its inception, the Viasat RTE ground service was designed to be a high throughput, scalable, and automated ground service for supporting the most critical and data intensive missions in space. Through our work with ATLAS Space Operations and the Alaska Satellite Facility, NASA will gain access to a cutting-edge communications solution that improves performance, significantly increases efficiencies over legacy systems, and provides a more cost-effective service for delivering mission data. We are excited to bring these advanced ground services forward to support NASA’s evolving NSN Services requirements.”
The Viasat network includes access to an existing global Ka-band network for remote sensing data, and future enhancements will enable the integration of Viasat’s advanced space relay solutions for L-band and Ka-band. Viasat’s multi-orbit space relay services are separately being demonstrated under the NASA Communications Services Project, which supports NASA’s transition from its legacy Tracking and Data Relay Satellite System (TDRSS). In November 2024, the agency announced that the NSN will no longer onboard new TDRSS users and will support missions either through the network’s existing DTE capabilities or commercial relay services.
The NSN Services contract aligns with NASA’s aim to identify and take advantage of available commercial capabilities to support mission communications and navigation requirements. By integrating additional commercial providers into the NSN, NASA can transport more science, tracking, telemetry and command data to support NASA’s communications requirements for current and future missions.
Visit our website to learn more about Viasat Real-Time Earth network services.
About Viasat
Viasat is a global communications company that believes everyone and everything in the world can be connected. With offices in 24 countries around the world, our mission shapes how consumers, businesses, governments and militaries around the world communicate and connect. Viasat is developing the ultimate global communications network to power high-quality, reliable, secure, affordable, fast connections to positively impact people's lives anywhere they are — on the ground, in the air or at sea — while building a sustainable future in space. In May 2023, Viasat completed its acquisition of Inmarsat, combining the teams, technologies and resources of the two companies to create a new global communications partner. Learn more at www.viasat.com, the Viasat News Room or follow us on Facebook, Instagram, LinkedIn, X or YouTube.
Copyright © 2025 Viasat, Inc. All rights reserved. Viasat, the Viasat logo and the Viasat Signal are registered in the U.S and in other countries to Viasat, Inc. All other product or company names mentioned are used for identification purposes only and may be trademarks of their respective owners.
Viasat, Inc. Contacts
Dan Bleier, Public Relations, Viasat Government, +1 (202) 383-5074, daniel.bleier@viasat.com
Lisa Curran/Peter Lopez, Investor Relations, +1 (760) 476-2633, IR@viasat.com
Forward-Looking Statements
This press release contains forward-looking statements that are subject to the safe harbors created under the Securities Act of 1933 and the Securities Exchange Act of 1934. Forward-looking statements include, among others, statements that refer to Viasat’s support of NASA’s Near Space Network with Real-Time Earth ground segment services and advanced space relay capabilities; the expected benefits and performance of the Viasat services to support communications for NASA missions; and the potential value of awards under the IDIQ NSN services contract. Readers are cautioned that actual results could differ materially from those expressed in any forward-looking statements. Factors that could cause actual results to differ include: risks associated with the construction, launch and operation of satellites, including the effect of any anomaly, operational failure or degradation in satellite performance; our ability to realize the anticipated benefits of satellites and any future satellite we may construct or acquire; changes in relationships with, or the financial condition of, key customers or suppliers; our reliance on a limited number of third parties to manufacture and supply our products; increased competition; the effect of adverse regulatory changes (including changes affecting spectrum availability or permitted uses) on our ability to sell or deploy our products and services; changes in the way others use spectrum; our inability to access additional spectrum, use spectrum for additional purposes, and/or operate satellites at additional orbital locations; competing uses of the same spectrum or orbital locations that we utilize or seek to utilize; and introduction of new technologies and other factors affecting the communications and defense industries generally. In addition, please refer to the risk factors contained in our SEC filings available at www.sec.gov, including our most recent Annual Report on Form 10-K and Quarterly Reports on Form 10-Q. Readers are cautioned not to place undue reliance on any forward-looking statements, which speak only as of the date on which they are made. We undertake no obligation to update or revise any forward-looking statements for any reason.
FAQ
What is the total value of NASA's Near Space Network Services contract awarded to VSAT?
What services will Viasat (VSAT) initially provide under the NASA contract?
How many companies were selected alongside VSAT for NASA's NSN Services contract?
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