EchoStar Partners with MDA Space for Revolutionary LEO Constellation

EchoStar has appointed MDA Space as the prime contractor for its innovative low Earth orbit (LEO) direct-to-device (D2D) satellite constellation. The initial contract is valued at $1.3 billion and involves the design, manufacturing, and testing of over 100 software-defined MDA AURORA™ D2D satellites. The constellation will operate within the newly established NTN and 3GPP standards, enabling seamless connectivity with standard smartphones without modifications. The contract includes options to expand to a full network of over 200 satellites, potentially increasing the contract's value to $2.5 billion.

EchoStar Corporation (NASDAQ: SATS), a leading global communications and connectivity provider, has appointed MDA Space Ltd. (TSX: MDA) as the prime contractor for its innovative low Earth orbit (LEO) direct-to-device (D2D) satellite constellation. The initial contract, valued at approximately US$1.3 billion (approx. C$1.8 billion), includes the design, manufacturing, and testing of over 100 software-defined MDA AURORA™ D2D satellites [1].

The constellation will operate within the newly established Non-Terrestrial Network (NTN) and 3GPP standards, enabling seamless connectivity with standard 5G smartphones without modifications. This contract includes options to expand to a full network of over 200 satellites, potentially increasing the contract's value to US$2.5 billion (approx. C$3.5 billion) [1].

EchoStar envisions future growth to thousands of satellites, as demand requires, to provide global talk, text, and broadband services directly to standard 5G handheld devices. The constellation will also connect to an array of sensor and mobile vehicles, further expanding its utility [1].

Hamid Akhavan, president & CEO of EchoStar, stated, "Our satellite expertise combined with our U.S.-based terrestrial 5G Open RAN network uniquely positions EchoStar to execute on this new large-scale wide-band LEO constellation. The market-leading technical innovation provided by MDA Space along with our global S-band/2GHz spectrum rights with the highest ITU priority, and our strong services delivery capabilities will enable us to serve the consumer, enterprise, public safety, and government sectors in the U.S., Europe, and beyond" [1].

Mike Greenley, CEO of MDA Space, commented, "EchoStar's selection of our new MDA AURORA™ D2D software-defined satellite to meet its demanding technical and business requirements is a testament to the confidence satellite operators have in our deep expertise, our differentiated MDA AURORA™ product line, and our expanding production capacity. This contract also demonstrates our continued market momentum as we strategically position MDA Space to be the prime contractor of choice for satellite operators offering direct-to-device and broadband connectivity" [1].

The EchoStar LEO constellation satellites will be designed, assembled, integrated, and tested at the state-of-the-art MDA Space high-volume satellite manufacturing facility in Montreal, which is currently undergoing a 185,000-square-foot expansion. Delivery of satellites is planned for 2028 with commercial service starting in 2029 [1].

References:
[1] https://www.cantechletter.com/newswires/mda-space-selected-by-echostar-for-worlds-first-open-ran-d2d-leo-constellation/
[2] https://finance.yahoo.com/news/mda-space-selected-echostar-worlds-110000717.html