EchoStar Awarded a U.S. Navy Wireless and Telecommunications Contract to Provide 5G Smart Devices and Services for the DoD and Federal Agencies

Rhea-AI Summary

EchoStar (NASDAQ: SATS) has been awarded a U.S. Navy contract worth up to $2.7 billion over the next 10 years. This IDIQ contract, part of the Spiral 4 wireless products and services program, will be executed by EchoStar's subsidiaries, Hughes Network Systems and Boost Mobile. The program aims to provide 5G wireless services and devices to the Department of Defense and other federal agencies across the U.S. and its territories, including international travel for temporary duty. The contract covers smartphone devices, service plans, and potentially other 5G-enabled equipment, along with customer service and support through an online portal. The contract begins in May 2024 with a base year and nine one-year options through 2034.

Positive

• EchoStar secured a $2.7 billion contract, enhancing revenue potential.
• The contract spans 10 years, offering long-term financial stability.
• The program involves EchoStar subsidiaries Hughes Network Systems and Boost Mobile, promoting business synergy.
• Focus on 5G services aligns with future growth trends in telecommunications.
• Provision includes multiple device types, expanding product offerings.
• Support for DoD and other federal agencies boosts EchoStar's market reputation.

Negative

• Contract fulfillment depends on the successful execution of a complex, multifaceted program.
• Yearly options imply potential uncertainty in long-term financial forecasting.
• Implementation of 5G technologies may face regulatory and technological challenges.
• Operational costs and resource allocation for the contract might strain financials.

Hughes Network Systems and Boost Mobile will jointly fulfill the contract valued at up to $2.7B over the next 10 years.

ENGLEWOOD, Colo., May 15, 2024 /PRNewswire/ -- Today, EchoStar Corporation (NASDAQ: SATS), announced they have been awarded an indefinite delivery, indefinite quantity (IDIQ) contract as part of the U.S. Naval Supply Systems Command Spiral 4 wireless products and services purchasing program. EchoStar subsidiaries Hughes Network Systems and Boost Mobile will provide 5G wireless services and devices to support DoD usage in all 50 United States and U.S. territories and for temporary duty international travel. Administered by the U.S. Navy, the Spiral 4 program is available to buyers in the Department of Defense and other federal agencies. Like previous iterations, Spiral 4 will include mobile device delivery and task orders for service plans. The estimated value of the program with all yearly options is up to $2.7B over 10 years.

The Spiral 4 program focuses on smartphone devices but also includes the possibility of additional devices such as tablets, IoT equipment, and other 5G-enabled devices. The program envisions device hardware and service plans, plus customer service, support, and reporting through an online portal. Spiral 4 requires Radio Access Networks (RAN) with support for Radio over Internet Protocol (ROIP) and Citizen Band Radio Services (CBRS). The program has a base year beginning in May 2024 and nine one-year option periods through 2034.

"EchoStar Corporation is proud to provide the DoD and other federal agencies with significant technological advancement using our innovative, Open-RAN based wireless connectivity capabilities. Through our Boost Mobile brand, the Echostar team will deliver critical 5G solutions, including devices from multiple manufacturers as well as a native 5G Open RAN network," said John Swieringa, president technology and COO EchoStar Corporation.

 

About EchoStar
EchoStar Corporation (Nasdaq: SATS) is a premier provider of technology, networking services, television entertainment and connectivity, offering consumer, enterprise, operator, and government solutions worldwide under its EchoStar®, Boost Mobile®, Boost Infinite, Sling TV, DISH TV, Hughes®, Hughesnet®, HughesON™, and JUPITER™ brands. In Europe, EchoStar operates under its EchoStar Mobile Limited subsidiary and in Australia, the company operates as EchoStar Global Australia. For more information, visit www.echostar.com and follow EchoStar on X (Twitter) and LinkedIn.

©2024 EchoStar. Hughes, Hughesnet, DISH, Boost Mobile, and Boost Infinite are registered trademarks of one or more affiliate companies of EchoStar Corp.

 

View original content to download multimedia:https://www.prnewswire.com/news-releases/echostar-awarded-a-us-navy-wireless-and-telecommunications-contract-to-provide-5g-smart-devices-and-services-for-the-dod-and-federal-agencies-302144086.html

SOURCE EchoStar Corporation

FAQ

What is the value of the contract awarded to EchoStar ?

The contract is valued at up to $2.7 billion over the next 10 years.

What services will EchoStar provide under the U.S. Navy contract?

EchoStar will provide 5G wireless services and devices, including smartphones, tablets, IoT equipment, and other 5G-enabled devices.

When does the EchoStar contract begin and how long does it last?

The contract begins in May 2024 with a base year and includes nine one-year options through 2034.

Which EchoStar subsidiaries are involved in fulfilling the U.S. Navy contract?

Hughes Network Systems and Boost Mobile will jointly fulfill the contract.

Who can access the products and services provided under the EchoStar contract?

The Department of Defense and other federal agencies can access the products and services.

What are the key components of the Spiral 4 program that EchoStar is part of?

The program includes 5G device hardware, service plans, customer service, support, and reporting through an online portal.