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 s ...

Core Insights - EchoStar Corporation has selected MDA Space Ltd. as the prime contractor for its new non-terrestrial network low Earth orbit direct-to-device satellite constellation, marking a significant step in the global space industry [1][4] - The initial contract is valued at approximately US$1.3 billion, with options that could increase the total value to about US$2.5 billion, indicating strong growth potential in satellite communications [2][8] - The constellation will comply with newly established NTN and 3GPP standards, enabling seamless connectivity for various services directly to standard 5G devices [3][4] Contract Details - The initial contract includes the design, manufacturing, and testing of over 100 software-defined MDA AURORA™ D2D satellites, with potential expansion to over 200 satellites [2][8] - Delivery of the satellites is planned for 2028, with commercial services expected to start in 2029, highlighting a long-term commitment to the project [8] Technical Features - The MDA AURORA™ D2D satellites will feature advanced technology such as a large user antenna, onboard processors compliant with 3GPP 5G NTN standards, and optical intersatellite links for robust connectivity [6][7] - The satellites will be manufactured at MDA Space's expanded facility in Montreal, which is undergoing a significant expansion of 185,000 square feet to accommodate increased production capacity [6][8] Market Positioning - EchoStar's selection of MDA Space as a contractor underscores MDA's leadership in the NTN market and its capability to meet the demands of satellite operators for direct-to-device and broadband connectivity [4][5] - The partnership aims to serve various sectors, including consumer, enterprise, public safety, and government, across the U.S. and Europe, leveraging EchoStar's existing terrestrial 5G network [4][5]