U.S. Space Force's PtS-G Contract and Its Implications for Viasat's Growth Trajectory

A conceptual illustration of the U.S. Space Force's Protected Tactical Satcom-Global (PTS-G) constellation in geosynchronous Earth orbit (GEO), featuring resilient, low-SWaP satellites with X/Ka-band capabilities, interconnected to provide secure, anti-jam communication networks for military operations.

The U.S. Space Force's Protected Tactical Satcom-Global (PTS-G) program represents a pivotal shift in the defense satellite communications (satcom) landscape, with far-reaching implications for companies like Viasat. Awarded in July 2025, the $4 billion Indefinite Delivery/Indefinite Quantity (IDIQ) contract, as announced by Satellite Today, has positioned Viasat as a key player in the development of next-generation, jam-resistant satellite networks. This analysis explores how the PTS-G program aligns with Viasat's strategic strengths and the broader market dynamics driving growth in the defense satcom sector.

Strategic Positioning: Viasat's Role in the PTS-G Program

Viasat's participation in the PTS-G program underscores its technical expertise and alignment with the U.S. military's evolving needs. The company is tasked with developing a dual-band X/Ka-band satellite featuring a low size, weight, and power (SWaP) design to enhance performance in contested environments, according to a GlobeNewswire release. This focus on SWaP optimization is critical for military applications, where compact, energy-efficient systems are essential for rapid deployment and operational flexibility.

The PTS-G program's emphasis on leveraging commercial technologies to accelerate deployment, as reported by Breaking Defense, aligns with Viasat's existing capabilities, including its ViaSat-3 constellation and experience in hybrid satellite solutions. By integrating commercial-grade hardware with military-grade security, Viasat is addressing a key challenge in defense satcom: balancing cost efficiency with resilience against jamming and cyber threats. The program's projected first launch in 2028, according to Satellite Today, also positions Viasat to capitalize on a multi-year production phase, with potential follow-on awards expected in 2028, per SpaceNews.

Financial Health and Market Projections

Viasat's financial performance in fiscal year 2025 further strengthens its position. The company reported total revenues of $4.52 billion, driven by the Inmarsat acquisition and robust growth in aviation services, according to the ViaSat earnings report. Its defense and advanced technologies segment saw a 7% revenue increase to $1.22 billion, reflecting strong demand for secure communication systems (per the earnings report). However, Viasat faces challenges, including a $6.7 billion net debt load and underperformance of the ViaSat-3 F1 satellite in the Americas (also noted in the earnings report).

Despite these headwinds, the defense satcom market is expanding rapidly. The global defense satcom market is projected to grow from $5.55 billion in 2024 to $7.76 billion by 2029 at a 6.93% CAGR, according to Satellite Markets, while the broader satellite communication market is expected to reach $71.5 billion by 2034 at a 12.3% CAGR, per Global Market Insights. Viasat's focus on multi-orbit capabilities and hybrid solutions positions it to capture a significant share of this growth, particularly as the U.S. military prioritizes resilient, high-bandwidth networks for intelligence, surveillance, and reconnaissance (ISR) operations, according to Fortune Business Insights.

Data query for generating a chart: Compare the projected growth of the global defense satcom market (2024–2029) with the broader satellite communication market (2025–2034), highlighting key drivers such as LEO constellations, AI integration, and cybersecurity demands.

Industry Trends and Competitive Dynamics

The PTS-G program is part of a broader trend toward proliferated, resilient satellite architectures. The U.S. Space Force's Project FORGE, which aims to deploy 48 AI-enabled synthetic aperture radar (SAR) satellites by late 2025, exemplifies this shift, as reported by Mordor Intelligence. Viasat's experience in integrating AI and machine learning into its satellite systems, highlighted by BeyondSPX, positions it to compete in this emerging space. Additionally, the growing emphasis on cybersecurity in defense satcom-driven by vulnerabilities in telemetry and command systems-has been noted by Breaking Defense, which aligns with Viasat's strengths in secure network design.

Geopolitical factors further amplify the sector's growth potential. Asia-Pacific is expected to register the highest growth rate in the satellite communication market, driven by increased defense spending in countries like India and Japan, according to Global Market Insights. While North America remains the largest market, Viasat's global footprint and partnerships with international defense agencies, as outlined in a SWOT Analysis, could enable it to diversify revenue streams beyond the U.S.

Risks and Mitigation Strategies

Viasat's debt burden and the performance of the ViaSat-3 F1 satellite remain critical risks. The company's strategic priorities for 2025-accelerating Inmarsat integration, expanding mobility services, and reducing leverage-are designed to address these challenges (per the ViaSat earnings report). Success in the PTS-G program could provide a revenue tailwind, but Viasat must also navigate competition from established players like Boeing and Northrop Grumman, as well as emerging startups in the small-satellite sector, highlighted by GovCon Wire.

Conclusion

The PTS-G contract represents a strategic inflection point for Viasat, aligning its technical capabilities with the U.S. military's urgent need for secure, resilient communication networks. While financial and operational risks persist, the company's leadership in hybrid satellite solutions, SWaP-optimized designs, and global market expansion positions it to capitalize on the defense satcom sector's projected growth. As the PTS-G program progresses toward its 2028 launch window, investors should closely monitor Viasat's ability to execute on its technical and financial priorities while navigating an increasingly competitive and capital-intensive industry.