Viasat — Business Overview

What does Viasat do?

Viasat is a global satellite communications company that sells connectivity services and related technology to a wide range of customers — from airline passengers to the U.S. military. Founded in 1986 and headquartered in Carlsbad, California, Viasat owns and operates a fleet of 23 in-service satellites, sells the hardware that connects to those satellites, and provides the software and security tools that run on top of them. Its roughly 7,000 employees serve customers whether they are on the ground, in the air, or at sea.

The company runs two segments:

Within Communication Services, the four main business lines are Aviation (in-flight connectivity, or IFC, on ~4,580 commercial aircraft and ~2,100 business jets), Government satcom (secure broadband for military users), Maritime (connectivity for ~13,200 vessels), and Fixed services (~130,000 U.S. residential broadband subscribers at an average of $113/month).

How does Viasat make money?

Viasat earns most of its money by selling ongoing connectivity subscriptions and services, with a secondary stream from selling hardware and technology products. On the commercial side, airlines, shipping companies, and residential customers pay recurring fees for internet access delivered via satellite. On the defense side, the U.S. government (which alone represents approximately 16% of total revenues in fiscal year 2026) pays for communications products and services under fixed-price, cost-reimbursement, and time-and-materials contracts.

The company's vertical integration — owning its satellites, ground infrastructure, and user terminals — is central to its business model. Rather than just reselling capacity from others, Viasat controls the full chain from space to end-user. This lets it offer bundled packages (for example, IFC plus in-flight entertainment plus cockpit software for airlines) that are harder for competitors to replicate and create customer "stickiness." R&D spending to support this model was $164.9 million in fiscal year 2026.

What market does Viasat operate in?

Viasat sits at the intersection of satellite communications, global mobility connectivity, and defense electronics — all of which are growing. The company emphasizes that commercial global mobility (aviation and maritime internet) is a large and fast-growing addressable market, driven by rising passenger volumes, more connected vessels, and increasing per-user data consumption. Viasat also estimates that 90% of total bandwidth demand is concentrated in just 15% of the Earth's surface, which it argues favors its high-capacity geostationary satellites over low-earth-orbit (LEO) networks.

On the defense side, demand is rising due to military digitization, multi-domain operations, and growing reliance on space-based assets. The company's defense and advanced technologies segment saw new contract awards grow from approximately $0.6 billion in fiscal year 2018 to $1.6 billion in fiscal year 2026, suggesting durable institutional demand.

A meaningful secular threat exists from LEO constellations like SpaceX's Starlink, which compete directly in aviation, maritime, and fixed broadband markets. Viasat argues its GEO fleet handles peak-demand geography more efficiently, but the competitive pressure from well-funded LEO operators is a key dynamic to watch.

Who are Viasat's main competitors?

Viasat competes in a highly fragmented but intensifying market, facing different rivals in each of its four business lines. Key named competitors include:

• Aviation IFC: SpaceX (Starlink), Panasonic Avionics, Gogo, Intelsat/Anuvu, SES, Thales Group
• Maritime: SpaceX, KVH, SES, Speedcast
• Fixed broadband: Cable, fiber, DSL, and fixed-wireless providers, plus satellite competitors
• Defense and advanced tech: L3Harris, General Dynamics, Raytheon, Northrop Grumman, Boeing, Lockheed Martin, EchoStar (Hughes), Thales, and others

Viasat's claimed competitive advantages center on its deep, multi-band satellite fleet, vertical integration, and the ability to cross-deploy technology between commercial and government markets. It also points to its "bundling" ability — offering complementary services (IFC plus entertainment plus cybersecurity) as a single managed solution — as a differentiator that increases switching costs. The company openly acknowledges that many of its competitors are substantially larger, have greater financial resources, and may hold spectrum or technology advantages it does not.

Where does Viasat operate?

Viasat is a genuinely global business, with its satellite fleet providing near-global coverage including oceanic and polar regions. Its 23 operational satellites span Ka-, L-, and S-band frequencies. The ViaSat-3 class satellites (two already launched, a third launched in April 2026) are each designed to cover roughly one-third of the globe.

The United States remains the home base, with 66% of its roughly 7,000 employees located there. U.S. fixed broadband, U.S. government contracts (about 16% of total revenues), and domestic defense work anchor its revenue base. Several satellites operate under U.K. regulatory authority following the 2023 acquisition of Inmarsat, a British satellite operator acquired for approximately $550.7 million in cash plus 46.36 million Viasat shares — a deal that significantly expanded Viasat's international reach and added Inmarsat's L-band fleet.

International exposure is meaningful and growing. Viasat provides broadband in Europe and Latin America, serves commercial aviation and maritime customers globally, and has strategic partnerships in Brazil and Mexico. Its aviation and maritime businesses follow vessels and aircraft worldwide. Key regulatory dependencies exist in multiple jurisdictions, including the UK, Isle of Man, Canada (via satellite agreements with Telesat), and the EU (GDPR compliance). Geopolitical risks include potential changes in spectrum rights, foreign licensing requirements, and export controls on its defense products.