Viasat Inc. VSAT has joined forces with Rocket Lab USA, Inc. RKLB, a prominent launch and space systems company. This collaboration aims to enhance Viasat's portfolio of multi-band, space-based relay communication services, offering crucial support for Low Earth Orbit (LEO) space missions with improved data management, reduced latency and increased throughput.

The partnership is in line with Viasat's commitment to revolutionize space communications. Through two awards totaling $80 million under NASA's Communications Services Project, Viasat will demonstrate its prowess in providing commercial satellite communications services and technologies to meet NASA's near-Earth communications requirements. This initiative becomes particularly significant as NASA prepares to phase out the Tracking and Data Relay Satellite System.

Viasat's Ka- and L-band relay solutions will play a pivotal role in overcoming the challenges posed by data latency in LEO missions. Leveraging the Real-Time Space Relay (RTSR) space-qualified Ka-band terminal and the InCommand system, Viasat will ensure near real-time, low-data latency communications. Furthermore, Rocket Lab's contribution of a new L-band radio called Frontier will enhance telemetry, tracking and command operations, facilitating seamless communication throughout the spacecraft's orbit.

Scheduled for launch in early 2026, the demonstration mission will integrate Viasat's Real-Time Earth Ground-Station-as-a-Service, offering direct-to-ground communications across S-, X- and Ka-bands. All transports will be seamlessly integrated through Viasat's Integrated Space Access Network, showcasing the network's adaptability to meet the diverse needs of LEO operators.

Viasat's collaboration with Rocket Lab marks a significant step toward enhancing NASA's multi-band space relay capabilities, showcasing the potential for innovative solutions to support future space missions efficiently and effectively.

Viasat’s impressive bandwidth productivity sets it apart from conventional and lower-yield satellite providers that run on incumbent business models. It has a competitive advantage in bandwidth economics, global coverage, flexibility and bandwidth allocation, which makes it believe that mobile broadband will act as a profit churner with a significant improvement in IFC revenues.

Viasat’s Satellite Services business is progressing well, with key metrics, including steady growth of average revenue per user (ARPU) and revenues showing impressive growth. ARPU is growing on the back of a solid retail distribution network, accounting for a rising proportion of high-value and high bandwidth subscriber base. Further, the growing adoption of in-flight Wi-Fi services in commercial aircraft like Lufthansa Group is benefiting the business.

The stock has lost 45.9% in the past year against the industry’s 19.9% rally.