New 5G Compliant Non-Terrestrial Network to be Built
MDA Space Named Prime Contractor for Echostar LEO Constellation
EchoStar Corporation has selected MDA Space as the prime contractor for its 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.
"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."
Hamid Akhavan, EchoStar
The initial contract, valued at approximately $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 $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."
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 initial EchoStar contract of approximately $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.