MDA selected by EchoStar for LEO D2D constellation

Executive Summary

• MDA Space Ltd. has been selected by EchoStar Corp. as the prime contractor for the world's first 3GPP 5G-compliant non-terrestrial network (NTN) using low-Earth-orbit (LEO) satellites for direct-to-device (D2D) connectivity.
• The initial contract is valued at approximately $1.3 billion USD ($1.8 billion CAD), covering the design, manufacturing, and testing of over 100 MDA Aurora D2D satellites.
• With contract options for a full initial configuration of over 200 satellites, the total potential value increases to approximately $2.5 billion USD ($3.5 billion CAD).

Key Details

• Contract Value: Initial tranche valued at ~$1.3 billion USD (~$1.8 billion CAD); total potential value with options reaches ~$2.5 billion USD (~$3.5 billion CAD).
• Scope of Work: Design, manufacturing, and testing of over 100 software-defined MDA Aurora D2D satellites.
• Production Capacity: Satellites will be designed, assembled, integrated, and tested at MDA Space’s facility in Montreal, which is currently undergoing a 185,000-square-foot expansion.
• Timeline: Delivery of satellites is planned for 2028, with commercial service starting in 2029.
• Financial Impact: The initial contract will be added to MDA's backlog in the third quarter of fiscal 2025.
• Strategic Context: This is the fourth LEO constellation contract awarded to MDA Space in just over three years, solidifying its leadership in the NTN market.
• Technical Specifications:
  • Fully compliant with 3GPP 5G NTN standards.
  • Features a large user antenna, onboard processor compliant with 3GPP 5G NTN and open RAN, and optical intersatellite links for a robust mesh network.
  • Utilizes differentiated chip technology and a high-power, efficient satellite platform.
• Service Capabilities: The constellation will provide messaging, voice, broadband data, and video services to standard 5G hand-held devices without modification, as well as connect to sensor and mobile vehicles.
• Exchange Rate: Management assumed a USD/CAD exchange rate of 1.37.

Notable Quotes

• Hamid Akhavan, President and CEO, EchoStar: "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... The market-leading technical innovation provided by MDA Space... will enable us to serve the consumer, enterprise, public safety and government sectors in the U.S., Europe and beyond."
• Mike Greenley, CEO, MDA Space: "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... 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."