MDA selected by EchoStar for LEO D2D constellation

Mr. Mike Greenley reports MDA SPACE SELECTED BY ECHOSTAR FOR WORLD'S FIRST OPEN RAN D2D LEO CONSTELLATION EchoStar Corp., a global communications and connectivity provider, has selected MDA Space Ltd. 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 $1.3-billion (U.S.) (approximately $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 (U.S.) (approximately $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 hand-held 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 and chief executive officer of EchoStar. "The market-leading technical innovation provided by MDA Space, along with our global S-band/two-gigahertz spectrum rights with the highest ITU [International Telecommunication Union] 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 (Internet of Things) 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, chief executive officerof 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 such as EchoStar, which require innovative and high-performance solutions to stay ahead in the market. MDA's solution provides better connectivity and a higher quality of service for users, enabling them to stay connected anywhere, any time. 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 (radio access network) 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; 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 $1.3-billion (U.S.) (approximately $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. Note: Management assumed a U.S.-dollar/Canadian-dollar exchange rate of 1.37. About MDA Space Ltd. Building the space between proven and possible, MDA Space is a trusted mission partner to the global space industry. A robotics, satellite systems and geointelligence pioneer with a 55-year-plus 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 United States and the United Kingdom 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 has been in its DNA since day one.