MDA SPACE SELECTED BY ECHOSTAR FOR WORLD'S FIRST OPEN RAN D2D LEO CONSTELLATION

Rhea-AI Summary

EchoStar (NASDAQ: SATS) has selected MDA Space as the prime contractor for its new LEO direct-to-device satellite constellation. The initial contract is valued at US$1.3 billion and includes design, manufacturing, and testing of over 100 software-defined MDA AURORA™ D2D satellites. With contract options for a full network of 200+ satellites, the total value could reach US$2.5 billion.

The constellation will be the world's first 3GPP 5G compliant non-terrestrial network using LEO satellites, providing messaging, voice, broadband data, and video services directly to standard 5G devices. Satellite delivery is planned for 2028 with commercial service starting in 2029. EchoStar envisions potential future growth to thousands of satellites based on demand.

Positive

• Initial contract value of US$1.3 billion with potential expansion to US$2.5 billion
• First-mover advantage in 3GPP 5G compliant LEO satellite network
• Fourth LEO constellation contract for MDA Space in three years
• Potential for expansion to thousands of satellites based on market demand
• Direct compatibility with standard 5G devices without modifications

Negative

• Long timeline to revenue generation with service starting in 2029
• Significant capital investment required for constellation deployment
• Subject to risks and uncertainties in satellite deployment and operation

Insights

Satellite Communications Specialist

EchoStar's $1.3B contract with MDA Space for LEO direct-to-device satellites represents significant technological advancement and revenue potential.

This US$1.3 billion contract (expandable to US$2.5 billion) represents a landmark development in the satellite communications industry. EchoStar's selection of MDA Space to build over 100 direct-to-device (D2D) satellites—potentially scaling to 200+ units—signals a major shift toward standardized satellite-to-smartphone connectivity.

The technical specifications are particularly noteworthy. These satellites will be fully compliant with 3GPP 5G NTN standards and Open RAN architecture, enabling connectivity to standard smartphones without modifications. This standards-based approach significantly expands the addressable market compared to proprietary D2D solutions.

EchoStar brings crucial assets to this venture: established satellite expertise, terrestrial 5G infrastructure, and importantly, global S-band/2GHz spectrum rights with high ITU priority. These spectrum rights represent a competitive advantage in the increasingly crowded D2D market.

The MDA AURORA™ D2D satellite architecture includes critical features: large user antennas for reliable connectivity, onboard 5G processing, optical intersatellite links for mesh networking, and custom chip technology. This positions the constellation for versatile applications across consumer, enterprise, and government sectors.

With commercial service targeted for 2029, this represents a long-term strategic investment. The contract's addition to MDA's backlog (their fourth LEO constellation contract in three years) demonstrates accelerating industry momentum toward direct-to-device satellite communications as a mainstream connectivity solution.

BRAMPTON, ON, Aug. 1, 2025 /PRNewswire/ - EchoStar Corporation (NASDAQ: SATS), a global communications and connectivity provider, has 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. With this contract, MDA Space is on track to begin volume manufacturing of the world's first 3GPP 5G compliant non-terrestrial network using LEO satellites.

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. With contract options, enabling a full initial configuration of a network of over 200 satellites, the value of the contract would increase to an approximate total value of US$2.5 billion (approx. C$3.5 billion). 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 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 phones configured to this standard, without modifications. Additionally, the constellation will connect to an array of sensor and mobile vehicles.

"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," 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 services delivery capabilities will enable us to serve the consumer, enterprise, public safety and government sectors in the U.S., Europe and beyond."

With this contract, EchoStar becomes the anchor customer for the 3GPP 5G NTN compliant MDA AURORA™ direct-to-device satellite product, further solidifying MDA Space's leadership in the non-terrestrial network (NTN) market. Standards-based compliance ensures interoperability between the satellite network and existing terrestrial cellular network, enabling seamless handover and data routing between the two. These standards allow all mobile cellular devices and IoT devices to connect directly to satellites operating in LEO, extending connectivity to remote or underserved areas.

"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," 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 offering direct-to-device and broadband connectivity."

A standard D2D product available to global NTN operators worldwide, MDA AURORA™ D2D is ideally suited to meet the needs of customers like EchoStar, who require innovative and high-performance solutions to stay ahead in the market. Our solution provides better connectivity and a higher quality of service for users, enabling them to stay connected anywhere, anytime.  

Technical features of the software-defined MDA AURORA™ D2D satellite include:

• a large user antenna to ensure optimal connectivity for user devices;
• an onboard processor compliant with 3GPP 5G NTN standards and Open RAN for seamless integration with terrestrial networks;
• optical intersatellite links that enable a robust mesh network in orbit;
• differentiated chip technology for tailored solutions that meet the evolving needs of the D2D market; and
• a high-power and efficient satellite platform.

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. The initial EchoStar contract of approximately US$1.3 billion (approximately C$1.8 billion) for the first tranche of satellites will be added to MDA's backlog in the third quarter of fiscal 2025 and represents the fourth LEO constellation contract awarded to MDA Space in just over three years.

*Management assumed US/CAD exchange rate of 1.37.

FORWARD-LOOKING STATEMENTS
This press release contains forward-looking information within the meaning of applicable securities legislation, which reflects the Company's current expectations regarding future events, including EchoStar's option to purchase additional satellites. Forward-looking information is based on a number of assumptions and is subject to a number of risks and uncertainties, many of which are beyond the Company's control, which could cause actual results and events to differ materially from those that are disclosed in or implied by such forward-looking information. Such risks and uncertainties include, but are not limited to, the factors discussed under "Risk Factors" in the Company's Annual Information Form available on SEDAR+ at www.sedarplus.com. MDA Space does not undertake any obligation to update such forward-looking information, whether as a result of new information, future events or otherwise, except as expressly required by applicable law.

ABOUT MDA SPACE
Building the space between proven and possible, MDA Space (TSX:MDA) is a trusted mission partner to the global space industry. A robotics, satellite systems and geointelligence pioneer with a 55-year+ story of world firsts and more than 450 missions, MDA Space is a global leader in communications satellites, Earth and space observation, and space exploration and infrastructure. The MDA Space team of more than 3,400 space experts in Canada, the US and the UK has the knowledge and know-how to turn an audacious customer vision into an achievable mission – bringing to bear a one-of-a-kind mix of experience, engineering excellence and wide-eyed wonder that's been in our DNA since day one. For those who dream big and push boundaries on the ground and in the stars to change the world for the better, we'll take you there. For more information, visit www.mda.space.

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SOURCE MDA Space

FAQ

What is the value of EchoStar's (SATS) contract with MDA Space for LEO satellites?

The initial contract is valued at US$1.3 billion for over 100 satellites, with potential expansion to US$2.5 billion for more than 200 satellites.

When will EchoStar's LEO satellite constellation begin commercial service?

The satellites are scheduled for delivery in 2028, with commercial service expected to begin in 2029.

What services will EchoStar's new LEO satellite constellation provide?

The constellation will provide messaging, voice, broadband data, and video services directly to standard 5G handheld devices without modifications.

How many satellites will be in EchoStar's LEO constellation?

The initial configuration includes over 100 satellites, expandable to over 200 satellites, with potential future growth to thousands of satellites based on demand.

What makes EchoStar's LEO satellite constellation unique?

It will be the world's first 3GPP 5G compliant non-terrestrial network using LEO satellites, offering direct-to-device connectivity with standard 5G phones.