ECHOSTAR SELECTS MDA SPACE FOR WORLD'S FIRST OPEN RAN BROADBAND NTN LEO CONSTELLATION

Rhea-AI Summary

EchoStar Corporation (NASDAQ:SATS) has selected MDA Space as the prime contractor for its groundbreaking $5 billion LEO satellite constellation project. The initial contract, valued at $1.3 billion, includes the design and manufacturing of over 100 software-defined MDA AURORA™ D2D satellites, with plans to expand to 200 satellites initially and potentially thousands in the future.

The constellation will provide global talk, text, and broadband services directly to standard 5G NTN devices, covering all 350 million Americans and over 7 billion people globally. EchoStar has invested over $18 billion in NTN satellite connectivity since 2012, including significant spectrum acquisitions in the 2GHz band across multiple countries.

Commercial service is scheduled to begin in 2029, with satellite delivery planned for 2028. The system will utilize up to 25x20 MHz of AWS-4/S-band 2GHz frequencies and will be fully compliant with 3GPP NTN standards.

Positive

• None.

Negative

• Significant capital requirement of $5 billion for the LEO project
• Extended timeline to commercial service launch in 2029
• High accumulated investment of $18 billion in NTN connectivity since 2012 increases financial exposure
• Potential execution risks in satellite manufacturing and deployment schedule

The new satellite network will enable a wide range of services to consumers, enterprises and governments across the globe, ensuring U.S. leadership in direct to device (D2D) connectivity and the space economy

The wideband LEO constellation will cover all 350 million Americans including Alaska and Hawaii and over 7 billion additional people globally

Estimated total cost of EchoStar's LEO constellation is $5 billion, increasing the company's total investment in NTN satellite connectivity to over $18 billion since 2012

ENGLEWOOD, Colo., Aug. 1, 2025 /PRNewswire/ -- EchoStar Corporation (NASDAQ:SATS), a global communications and connectivity provider, selected MDA Space Ltd. (TSX:MDA), a trusted mission partner to the rapidly expanding global space industry, as the prime contractor for EchoStar's new non-terrestrial network (NTN) low Earth orbit (LEO) direct-to-device (D2D) satellite constellation. The initial contract, valued at approximately $1.3 billion (approx. C$1.8 billion) includes the design, manufacturing and testing of the first tranche of over 100 software-defined MDA AURORA™ D2D satellites.ⁱ The full initial configuration of the system consists of 200 satellites with future growth to thousands, as demand requires. EchoStar's LEO constellation will provide global talk, text and broadband services directly to standard 5G NTN handheld devices.

"EchoStar's Hughes communications division has over 60 years of leadership in the satellite and space technology business. Our satellite expertise combined with our U.S.-based terrestrial 5G Open RAN network uniquely positions EchoStar to execute on this new large-scale wideband LEO constellation," said Hamid Akhavan, president & CEO of EchoStar. "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 service delivery capabilities will enable us to serve the consumer, enterprise, public safety and government sectors in the U.S., Europe and beyond. Critically, this will foster U.S. leadership in the growing space economy."

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

Since 2012, EchoStar has invested well over $13 billion in the 2GHz band with the acquisition of DBSD and TerreStar, who held 2GHz FCC licenses as well as three S-band GEO satellites (one of which required expensive retrofitting). Since then, EchoStar has led the efforts to standardize the 2GHz band at 3GPP for 5G and to develop the NTN 3GPP standards. EchoStar's investment includes the acquisition, integration, deployment and operation of the 2GHz band (including the adjacent H-Block) as part of its virtualized cloud-native standalone 5G Open RAN network in the United States as well as the recent launch of three NGSO 2GHz satellites (Lyra), ground station equipment and other related activities. All of this investment goes to EchoStar's vision of a global D2D service seamlessly integrated with terrestrial connectivity to everyone.

Today, EchoStar holds exclusive licenses in the 2GHz band in the United States (AWS-4) and is authorized to provide MSS services via satellite over this spectrum. It also holds 30 MHz of 2GHz licenses in Europe; 40 MHz in Canada through a long-term partnership; 20 MHz in Mexico; and 30 MHz in Brazil. EchoStar has already begun delivering texting service in Europe using 2GHz. In North America with its existing GEO satellites, EchoStar will launch a similar service in the first half of 2026. 

The new LEO constellation satellites will be designed, manufactured and tested at the MDA Space satellite facility. The constellation will utilize up to 25x20 MHz of AWS-4/S-band 2GHz frequencies, and will be 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. Additionally, the constellation will connect to an array of sensor and mobile vehicles.

Delivery of satellites is planned for 2028 with commercial service starting in 2029. The new LEO project, in total, is estimated to cost $5 billion.

About EchoStar Corporation

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®, 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.

©2025 EchoStar, Hughes, HughesNet, DISH and Boost Mobile are registered trademarks of one or more affiliate companies of EchoStar Corp.

i	EchoStar intends to purchase over 200 MDA AURORA™ satellites from MDA Space for an approximate value of $2.5 billion (approx. C$3.5 billion).

 

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SOURCE EchoStar Corporation

FAQ

What is the total cost of EchoStar's (NASDAQ:SATS) new LEO constellation project?

The total estimated cost of EchoStar's LEO constellation project is $5 billion, with an initial contract of $1.3 billion awarded to MDA Space.

When will EchoStar's (NASDAQ:SATS) LEO satellite constellation begin commercial service?

EchoStar plans to begin commercial service in 2029, following satellite delivery in 2028.

How many satellites will be included in EchoStar's (NASDAQ:SATS) LEO constellation?

The initial configuration will include 200 satellites, with the first tranche consisting of over 100 satellites. The system is designed to scale to thousands of satellites as demand requires.

What spectrum rights does EchoStar (NASDAQ:SATS) hold for its satellite network?

EchoStar holds exclusive 2GHz band licenses in the United States (AWS-4), 30 MHz in Europe, 40 MHz in Canada, 20 MHz in Mexico, and 30 MHz in Brazil.

How many people will EchoStar's (NASDAQ:SATS) LEO constellation cover?

The constellation will cover all 350 million Americans including Alaska and Hawaii, plus over 7 billion additional people globally.