Satellite Communications

Satellite communications (satcom) is the delivery of voice, data, broadcast, and broadband connectivity through satellites in orbit, to ground stations, ships, aircraft, and increasingly ordinary smartphones. It is the largest downstream segment of the space economy, spanning GEO broadband, LEO constellations, mobile satellite services, and the fast-emerging direct-to-device category.

What is satellite communications?

A communications satellite is a relay in the sky: it receives a signal from one point, amplifies it, and retransmits it to another, covering areas no terrestrial network reaches economically. The segment divides by orbit and by customer. Geostationary (GEO) satellites such as Viasat’s ViaSat-3 fleet provide high-capacity broadband to aviation, maritime, and fixed users; Viasat earned record fiscal 2026 revenue of $4.6 billion across its communication services and defense businesses (Viasat). Low-Earth-orbit (LEO) constellations trade coverage per satellite for lower latency; Iridium’s 66 crosslinked satellites form the only truly global mobile network, serving 2.555 million subscribers with $158.0 million of quarterly service revenue (Iridium). Governments are now major buyers of sovereign capacity: the European Union signed a 10.6 billion euro concession in December 2024 for the 290-satellite IRIS2 secure constellation (European Commission).

The frontier is direct-to-device (D2D), which connects unmodified smartphones straight to satellites. AST SpaceMobile builds large LEO satellites for that purpose and holds commercial deals with more than 50 mobile operators reaching nearly 3 billion subscribers (AST SpaceMobile), while Globalstar’s wholesale capacity already powers consumer Emergency SOS features.

“2026 is off to a solid start, as we continue to grow service revenue and introduce new products, like our next-generation IoT platform.”

— Matt Desch, CEO, Iridium (Q1 2026 release)

How is satellite communications used in thematic investing?

Satcom is the cash-flow engine of space themes such as Global Space Technology. Launch and lunar names are priced on milestones, but satcom operators bill subscribers every month, which is why the segment supplies most of the theme’s profitable members: Viasat, Iridium, EchoStar, Eutelsat, SES, Sirius XM, and SKY Perfect JSAT all monetize orbiting communications assets. The segment also carries the theme’s strongest near-term catalysts, from direct-to-device commercialization to sovereign programs like IRIS2, and its consolidation wave, including Amazon’s agreement to acquire Globalstar in April 2026, keeps strategic buyers in the market. Within ETFpedia, satcom operators sit in the downstream half of the space value chain.

Related terms & concepts

FAQ

What is satellite communications?

Satellite communications is the use of orbiting satellites to relay voice, data, broadcast, and broadband signals between points on Earth, or directly to ships, aircraft, vehicles, and increasingly ordinary smartphones. It is the largest downstream segment of the space economy, monetized through subscriptions, wholesale capacity, and government contracts.

Which listed companies are satellite communications operators?

Viasat (VSAT) earned record fiscal 2026 revenue of $4.6 billion across broadband and defense satcom (Viasat). Iridium (IRDM) serves 2.555 million subscribers on its 66-satellite L-band network (Iridium). Globalstar, EchoStar, AST SpaceMobile, Eutelsat, SES, and SKY Perfect JSAT also operate in the segment.

What is direct-to-device satellite communication?

Direct-to-device (D2D) connects standard, unmodified phones straight to satellites, removing the need for dedicated terminals. AST SpaceMobile builds large LEO satellites for smartphone broadband with deals covering more than 50 mobile operators (AST SpaceMobile), and Globalstar's wholesale capacity powers Emergency SOS features on a major technology partner's phones.

Sources & references

  1. Iridium Announces First Quarter 2026 Results · Iridium Communications Inc., 2026-04-23
  2. Viasat Q4 FY26 Shareholder Letter (Form 8-K, Exhibit 99.2) · Viasat, Inc. / SEC EDGAR, 2026-05-28
  3. Commission takes next step to deploy the IRIS2 secure satellite system · European Commission (DG Defence Industry and Space), 2024-12-16
  4. AST SpaceMobile Quarterly Results (Form 8-K Exhibit 99.1) · AST SpaceMobile / SEC EDGAR, 2025-08-11