U.S. satellite internet giant Viasat inks deal to use Telesat’s LEO constellation

April 7, 2025

Already an Insider? Log in

Get Instant Access to This Article

Become an Ottawa Business Journal Insider and get immediate access to all of our Insider-only content and much more.

A U.S. firm that provides in-flight internet services to some of the world’s biggest airlines has signed a deal to use Telesat’s next-generation satellite technology. Viasat has agreed to a “substantial multi-year contract” that will see the California-based communications company tap into Telesat’s low-Earth-orbit satellite constellation to provide high-speed internet access to customers in the aviation, maritime, enterprise and defence markets, Telesat said Monday. Financial terms of the agreement were not disclosed. The deal comes just over a week after Ottawa-based Telesat reported a 20 per cent decline in revenues in fiscal 2024 compared with the previous year. The satellite services provider has been shifting its focus from traditional higher-orbit geostationary (GEO) satellites to a new network of lower-latency LEO satellites that are expected to start going into orbit late next year. The company expects its revenues to continue dropping as much as 35 per cent in 2025 as it phases out some of its aging GEO satellites and existing enterprise customers migrate to competitors such as Starlink. But CEO Dan Goldberg tried to reassure investors that the decline will be short-lived, telling analysts on a call late last month he’s “more bullish than ever” about Telesat’s future as its LEO constellation, dubbed Lightspeed, gets closer to entering service. The CEO said Telesat will be well-equipped to capitalize on growing momentum for LEO technology. Citing “tectonic shifts in the geopolitical environment,” Goldberg said governments around the world are looking to boost defence spending while also stepping up efforts to “bridge the digital divide” in regions that don’t have easy access to high-speed internet service. Meanwhile, the company is also banking on Lightspeed to make it a major player in the growing market for lower-latency satellites that can deliver faster and more reliable internet service to remote regions and users in harder-to-reach locations such as aircraft and cruise ships. While Goldberg wouldn’t get into specifics about a potential deal with Viasat during his call with analysts last month, he said Telesat was in “advanced discussions” with a number of potential customers for Lightspeed, adding he expected to see “more meaningful contributions” to Telesat’s order backlog by the end of the year. “The market just feels like it’s moving in our direction. But we’ve got to close these deals,” Goldberg told analysts. Landing Viasat gives Telesat a blue-chip customer for Lightspeed as it battles with the likes of Elon Musk’s Starlink for LEO market supremacy. The California firm, which provides internet service to customers in the United States and several other countries, had revenues of more than US$4 billion in 2024. Viasat also delivers in-flight Wi-Fi services to a number of major international carriers, including American Airlines, Delta Air Lines, United Airlines and Qantas. According to Telesat’s news release Monday, the company is the “largest broadband connectivity provider in the commercial aviation market.” Telesat shares were up 94 cents, or more than four per cent, to $24.33 in late-afternoon trading on the Toronto Stock Exchange.