Viasat Secures $3.5 Million US Space Force Contract For Commercial Satellite Services

Viasat has secured its first task order worth $3.5 million under a new U.S. Space Force contract designed to tap into commercial space internet services. The award marks a significant step in leveraging emerging low Earth orbit (LEO) satellite capabilities for military and defense applications.

The Proliferated LEO Satellite Services Contract

The task order falls under the Proliferated Low Earth Orbit (PLEO) satellite services contract, which is jointly managed by the Defense Information Systems Agency (DISA) and the U.S. Space Force’s Commercial Satellite Communications Office.

The contract framework is designed to provide the U.S. government with access to high-speed satellite internet services from commercial providers, ensuring reliable and secure global connectivity.

The PLEO contract has seen a significant expansion, with its funding ceiling recently increased from $900 million to a staggering $13 billion.

This sharp increase underscores the growing demand for satellite-based broadband as the Department of Defense (DoD) aims to modernize its communication infrastructure. The contract will span a five-year base period, with an option to extend for an additional five years, enabling continuous competition among roughly 20 pre-selected vendors for future task orders.

Viasat’s Role and Multi-Orbit Strategy

Viasat, known for its extensive geostationary satellite (GEO) network, will fulfill the PLEO task order by delivering fully-managed LEO satellite-based services.

The task order includes space relay services supplemented by geostationary and non-GEO satellite capabilities, ensuring robust and adaptable coverage for military operations.

Despite its established GEO satellite presence, Viasat does not currently operate its own LEO constellation. Instead, it plans to provide LEO connectivity through an undisclosed partner’s Ku-band network.

At present, OneWeb and SpaceX’s Starlink are the only operational LEO networks offering high-speed broadband, though Amazon’s Project Kuiper is expected to enter the market soon.

The company has been actively pursuing partnerships to bolster its multi-orbit strategy, which integrates GEO, medium Earth orbit (MEO), and LEO assets to provide seamless, resilient global connectivity.

Viasat executives have previously revealed ongoing discussions with various LEO operators, including OneWeb, suggesting a collaborative approach to meeting the U.S. government’s increasing demand for agile and high-capacity satellite communications.

A Surge in Demand for Satellite-Based Broadband

The sharp rise in the PLEO contract ceiling reflects a broader trend in military and government reliance on satellite broadband services. With increasing geopolitical tensions and the need for real-time situational awareness, secure and high-speed communications have become mission-critical for the U.S. military.

LEO networks, known for their low latency and global coverage, are particularly attractive for applications ranging from intelligence gathering to battlefield communications.

By securing this task order, Viasat positions itself as a key player in providing advanced satellite solutions under the Space Force’s expanded initiative. The company’s approach of integrating services from multiple orbits ensures a diverse and redundant communication infrastructure, mitigating risks associated with single-orbit dependency.

The Road Ahead

As the Space Force and DISA continue to issue task orders under the expanded PLEO contract, competition among vendors is expected to drive innovation and cost efficiency.

Viasat’s collaborative approach with LEO providers like OneWeb highlights the importance of strategic partnerships in addressing the complex and evolving demands of government satellite communications.

In the coming years, the U.S. military’s reliance on commercial satellite networks is likely to grow as technological advancements in the sector, including the deployment of next-generation constellations and hybrid networks, provide enhanced connectivity and resilience.

For Viasat, this task order not only represents immediate revenue but also reinforces its strategic positioning in the multi-billion-dollar satellite services market.