EchoStar Announces $1.3 Billion Satellite Contract with MDA Space, Analysts Offer Mixed Predictions.

EchoStar has entered into a $1.3 billion satellite contract with MDA Space, with plans to deploy an initial fleet of 200 satellites by 2028 and launch commercial services by 2029. Analysts offer mixed predictions, with target stock prices ranging from $14 to $49. EchoStar's GF Value is estimated to be substantially lower than its current market price.

EchoStar Corporation (NASDAQ: SATS) has entered into a significant satellite contract with MDA Space Ltd. (TSX: MDA), with a focus on deploying an initial fleet of 200 satellites by 2028 and launching commercial services by 2029. This new initiative aims to provide global talk, text, and broadband services directly to 5G NTN handheld devices. The contract, valued at approximately $1.3 billion (approx. C$1.8 billion), includes the design, manufacturing, and testing of over 100 software-defined satellites, with a future growth potential to thousands as demand requires [1].

The new satellite network, part of EchoStar's non-terrestrial network (NTN) low Earth orbit (LEO) constellation, is estimated to cost a total of $5 billion, increasing the company's total investment in NTN satellite connectivity to over $18 billion since 2012 [1]. This investment underscores EchoStar's commitment to leading the space economy and ensuring U.S. leadership in direct-to-device (D2D) connectivity.

EchoStar's selection of MDA Space as the prime contractor highlights the company's confidence in MDA's deep expertise and products, particularly the MDA AURORA™ D2D software-defined satellites [1]. The satellites will utilize up to 25x20 MHz of AWS-4/S-band 2GHz frequencies, fully compliant with the newly created NTN and 3GPP standards, allowing EchoStar to provide messaging, voice, broadband data, and video services upon launch to all devices with the current 3GPP NTN specifications without modifications [1].

Analysts have offered mixed predictions regarding the impact on EchoStar's stock. Target stock prices range from $14 to $49, with the GF Value estimated to be substantially lower than the current market price. The ongoing probe from the Federal Communications Commission (FCC) into EchoStar's spectrum usage and buildout deadlines adds uncertainty to the company's financial outlook [3]. However, the new satellite contract signals EchoStar's commitment to using the AWS-4 spectrum for both wireless and satellite purposes, potentially addressing the FCC's concerns [3].

EchoStar's CEO, Hamid Akhavan, emphasized the company's vision of a global D2D service seamlessly integrated with terrestrial connectivity. The new LEO constellation will connect to an array of sensor and mobile vehicles, enhancing EchoStar's service offerings and positioning it as a leader in the growing space economy [1]. The company is expected to provide more details about the low-earth orbit satellite service at the World Space Business Week show in Paris in September.

In conclusion, EchoStar's $1.3 billion satellite contract with MDA Space represents a significant investment in the company's future growth and leadership in the space economy. While the ongoing FCC probe adds uncertainty, the new satellite initiative underscores EchoStar's commitment to innovation and global connectivity.

References:
[1] https://ir.echostar.com/news-releases/news-release-details/echostar-selects-mda-space-worlds-first-open-ran-broadband-ntn
[2] https://www.bizjournals.com/denver/news/2025/08/01/echostar-to-spend-billions-on-new-satellites.html
[3] https://broadbandbreakfast.com/echostar-launching-leo-service-fcc-talks-ongoing/