VSAT and AST SpaceMobile Compete for U.S. Defense Dominance in LEO Satellite Market

The defense sector is witnessing unprecedented competition as commercial space companies jostle for influence in America’s most critical infrastructure protection initiatives. VSAT, a key player in secure satellite communications, and AST SpaceMobile are among the frontrunners leveraging advanced LEO (low-Earth orbit) satellite technology to capture lucrative defense contracts and reshape how the U.S. military maintains operational resilience.

How Viasat’s Army Contracts Shape Modern Defense Communications

Viasat, known by its ticker VSAT, has emerged as a trusted partner for the U.S. military through multiple high-profile initiatives. The company was selected by the U.S. Space Force to develop secure and resilient satellite communications infrastructure through the PTS G program, a strategic initiative designed to protect military operations against emerging threats. Additionally, Viasat secured a separate contract to deliver LEO satellite communications supporting U.S. Space Force missions worldwide.

Meanwhile, the U.S. Army has partnered with Globalstar, which operates under a Cooperative Research and Development Agreement to test and deploy satellites capable of secure communications, covert sensing, and target tracking in hostile environments. These military partnerships underscore the strategic importance of reliable, ground-independent communication channels that can operate in remote and contested areas where traditional infrastructure may be compromised.

AST SpaceMobile’s SHIELD Award: A Strategic Pivot in Layered Defense Architecture

AST SpaceMobile (ticker: ASTS) recently achieved a significant milestone by winning a contract with the Missile Defense Agency (MDA) to participate in the SHIELD Program—an initiative focused on building scalable, resilient defenses against air, missile, space, cyber, and hybrid threats. This award positions ASTS to compete for follow-on projects developing, testing, and maintaining critical MDA systems that strengthen U.S. national security.

The company’s technical advantage lies in its LEO satellite constellation’s capacity to deliver secure communications, advanced sensing, and command-and-control capabilities across all operational domains. By offering ground-independent communication pathways, ASTS satellites eliminate reliance on vulnerable terrestrial infrastructure, making them particularly valuable for military operations in remote regions and contested zones. The constellation’s built-in redundancy accelerates data delivery and strengthens connectivity with allied defense networks, aligning with the U.S. government’s broader strategy under the “Golden Dome” framework to integrate commercial space capabilities into national defense.

Competitive Positioning: Why Commercial LEO Matters for Defense

The competition between VSAT, ASTS, and Globalstar reflects a fundamental shift in how the Department of Defense approaches modernization. Instead of building proprietary systems, the military increasingly relies on dual-use space technology—commercial satellite networks that serve both civilian and defense applications. This approach reduces costs, accelerates innovation cycles, and taps into the private sector’s technological edge in launching and operating large LEO constellations.

VSAT’s established relationships and proven track record in military satellite communications, combined with ASTS’s newer but ambitious LEO network capabilities, create a dynamic competitive environment. Both companies benefit from the Pentagon’s recognition that resilient, layered defenses require rapid data transmission, extensive coverage, and system redundancy—precisely the strengths of commercial LEO providers.

Market Performance: ASTS Commands Premium Valuations Despite Losses

ASTS shares have surged dramatically, rising 457.1% over the past year compared to the broader industry’s 29.8% growth trajectory. This exceptional performance reflects investor confidence in the company’s strategic positioning within the defense sector, despite ongoing financial headwinds.

From a valuation perspective, ASTS trades at a forward price-to-sales ratio of 143.56x, substantially above industry averages. Zacks consensus estimates project the company will report a net loss of $1.06 per share in 2025, with that deficit narrowing to $0.74 per share in 2026. These projections suggest a multi-year timeline before profitability, a profile typical for high-growth space technology firms betting on future contract awards and commercialization.

Currently, ASTS carries a Zacks Rank rating of #3 (Hold), reflecting analyst caution balanced against the strategic importance of the company’s technology and defense partnerships.

The Outlook: Strategic Value Beyond Current Earnings

The competition for defense contracts between VSAT, ASTS, Globalstar, and other LEO operators will likely intensify as the Pentagon accelerates digital modernization. Success in this arena depends not just on technical capability but on relationships, proven reliability, and the ability to scale operations securely. For ASTS, the SHIELD Program contract represents validation of its technology and a launchpad for sustained government engagement. VSAT’s established military relationships position it as a proven alternative. The resulting competition benefits the military, driving innovation and resilience across the defense industrial base.