Investing.com -- Viasat, Inc. (NASDAQ: VSAT) stock climbed 5% following the company’s announcement of being selected for a NASA contract potentially worth $4.8 billion. The contract is part of NASA’s Near Space Network (NSN) Services, aiming to enhance direct-to-Earth (DTE) communication capabilities for space missions.
The multi-award indefinite delivery, indefinite quantity contract, which has a base period of five years with an option to extend, positions Viasat as one of four commercial entities slated to receive Task Order awards. Viasat’s initial role under this contract will be to provide global ground segment support services. The company’s Defense and Advanced Technologies (DAT) business unit will offer DTE connectivity for existing and forthcoming NASA space missions. This contract comes as NASA looks to increase its reliance on commercial DTE services, which currently account for approximately 36% of its needs.
Viasat’s contribution to NASA will be supported by its Viasat Real-Time Earth (RTE) Ground-Segment-as-a-Service network, promising high-throughput satellite-ground communication solutions for Low Earth Orbit (LEO) missions. By leveraging partnerships with ATLAS Space Operations and the Alaska Satellite Facility, Viasat aims to deliver a modernized, robust satellite ground network. The RTE network boasts capabilities like multi-gigabit per second downlinks and covers six continents, which may substantially enhance NASA’s data downlink frequency and mission-critical data delivery.
Kent Leka, Vice President and General Manager of Antenna Systems at Viasat, expressed excitement about the selection, emphasizing the RTE ground service’s high throughput, scalability, and automation designed to support demanding space missions. The network’s anticipated advancements include the application of artificial intelligence, machine learning, and cloud-based optimization.
The contract also aligns with NASA’s strategy to leverage commercial capabilities for mission communication and navigation needs, offering a more cost-effective and efficient alternative to legacy systems. The NSN Services contract is a strategic move for NASA as it transitions from its Tracking and Data Relay Satellite System (TDRSS), with plans to cease onboarding new TDRSS users by November 2024 and shift towards commercial relay services.
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