Carlsbad satellite Internet firm Viasat said this week that it won a contract to supply fast in-flight broadband to U.S. government senior leaders and special mission aircraft.
The $55.6 million one-year contract begins this year and has seven annual renewal options—which brings the potential total value to nearly $560 million.
U.S. Defense Information Systems Agency awarded the contract. It covers a variety of aircraft used by top U.S. officials such as the president, vice president, secretary of defense, secretary of state, chairman of the Joint Chiefs of Staff and other senior government officials.
For the past two years, Viasat has been the provider of high-speed Internet links to government VIP aircraft under a previous contract, which expired.
A company spokesperson declined to say Air Force One was included under the new contract. In a 2016 press release announcing the prior award, however, Viasat did reveal that it was supplying in-flight Internet to Air Force One.
Viasat said its in-flight broadband system enables a “situation room in the sky,” with the ability to stream high definition video, voice calls, command and control communications and video conference calls.
"We are proud to provide U.S. government senior leaders with a proven in-flight broadband connectivity experience,” said Ken Peterman, head of Viasat’s government systems business, in a statement. “Our best-in-class connectivity service with advanced cyber protection for secure air-to-ground communication ensures senior leaders are connected—virtually anywhere they fly."
Since it launched its first satellite in 2011, Viasat has emerged as a leader in supplying in-flight Wi-Fi to both government and commercial aircraft. JetBlue, American Airlines, United Airlines and others use its service, which can deliver more than 12-megabits per second speeds to each seat on commercial jets.
Through June, the company had equipped 757 commercial aircraft with the antennas and other gear for in-flight Wi-Fi. It has a backlog of more than 850 planes in the pipeline for antenna installations, which typically occur when an aircraft is pulled out of service for scheduled maintenance.
The company received a new order for 100 additional aircraft last quarter, and is currently connecting nearly five million mobile devices per quarter in-flight through its Wi-Fi service to airlines, said Chief Executive Mark Dankberg in a conference call with analysts last month.
“We'll easily surpass 1,000 commercial aircraft in-service by the end of the fiscal year,” said Dankberg. “We're also establishing a reputation to have a unique ability to deliver Internet, media, content and commerce in the air. We think that's attractive to passengers and can create competitive advantages for our airline partners and for ourselves.”
Last summer, Viasat launched its second high-bandwidth satellite, expanding its footprint across the Atlantic and into South America. It works with other satellite operators to provide worldwide coverage for government VIP aircraft.
Over the next two years, Viasat plans to launch at least two additional broadband satellites that would increase bandwidth and expand its global footprint.
The company’s shares ended trading Friday up 34 cents at $61.94 on the Nasdaq exchange.