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The satellite revolution of recent years is not unfolding only in orbit around Earth. While global players are investing billions of dollars in deploying dense satellite constellations, the real bottleneck lies on the ground: the ability to connect those satellites to users in a continuous, flexible, and economically viable way. In recent years, this segment has become both a technological and financial battleground, with direct implications for capital markets.
The core challenge is well known. A growing mix of orbital regimes (GEO, MEO, and LEO), rising traffic loads, and demand for near-zero latency all require communications equipment capable of operating simultaneously with different satellite constellations. Closed systems that rely on a single provider’s satellites and terminals create high dependency and limit operational flexibility—for civilian telecom operators and defense organizations alike.
This is where a different technological approach comes into play. Israel-based Gilat Satellite Networks has developed software-defined satellite communications platforms built on a multi-orbit architecture. These systems can identify in real time which satellite is available, in which orbit, and route communications accordingly—whether for in-flight connectivity, communications in remote areas, or operational use. The combination of advanced antennas, including electronically steered antennas, with high-performance modems enables very high data rates and stable connectivity even in dynamic environments.
In recent years, the company has also strengthened its position through targeted financial moves designed to accelerate entry into new markets and expand its technology portfolio. A key transaction was the acquisition of U.S.-based DataPath, which operates in satellite communications for the defense market, in a deal valued at tens of millions of dollars. At the time of acquisition, it generated annual revenues of around $37 million and has since become a significant growth engine, with revenues expected to nearly double. Another notable move was the acquisition of Stellar Blu for approximately $100 million—a major investment that added electronically steered antenna capabilities. At the time of the deal, it had an order backlog of nearly $200 million, which has since expanded to around $400 million, primarily in the in-flight connectivity segment. Alongside these acquisitions, the company secured a series of long-term contracts with satellite operators and aviation customers, and recurring revenues from deployed systems have driven a sharp improvement in financial performance. As of 2025, the company holds more than $160 million in cash, earmarked in part for further acquisitions, particularly in defense and satellite platform technologies—underscoring an acquisition-driven strategy alongside internal development.
Beyond the technological value, this is also a clear financial story. Companies operating in the infrastructure layer benefit from recurring revenue models: every aircraft, vessel, or ground unit equipped with such systems generates an ongoing revenue stream. This provides a meaningful advantage over business models built on one-off projects. Not surprisingly, shares of companies in this segment have attracted growing investor interest in recent years, driven by major contract wins and expansion into new markets.
Within this arena, there is also indirect competition with closed satellite networks such as those being built by Amazon and Starlink. While these players offer end-to-end solutions—satellites, terminals, and services—multi-orbit platforms present an open alternative, allowing customers to work with multiple satellite providers simultaneously and avoid dependence on a single network. In this sense, the competition is not only technological, but also a struggle for control over the value chain.
From a security perspective, militaries require mobile, secure, and resilient satellite communications that are not tied to a single constellation. Multi-orbit systems provide redundancy and operational resilience, enabling command and control even under challenging conditions. The combination of growing civilian demand and rising defense investment creates a dual tailwind.
As satellite constellations continue to expand, the key question no longer seems to be who will launch more satellites—but who will control the infrastructure that connects them to the ground, and who will be able to translate that control into long-term business growth.
