MDA Space Secures Contract with EchoStar for Pioneering Direct-to-Device LEO Satellite Constellation
MDA Space Ltd., a leading provider of space solutions, has been selected by EchoStar Corporation, a global communications and connectivity giant, as the prime contractor for a groundbreaking low Earth orbit (LEO) satellite constellation. This constellation, which will be the first of its kind, is designed to deliver direct-to-device (D2D) services, marking a major milestone in the evolution of non-terrestrial networks (NTN).
EchoStar’s new constellation will be based on the 3GPP 5G compliant NTN standards, leveraging MDA Space’s innovative AURORA™ D2D satellites. This partnership is set to revolutionize the way mobile devices, such as smartphones, communicate, extending connectivity to areas traditionally out of reach. The contract, valued at approximately US$1.3 billion (around C$1.8 billion), includes the design, manufacturing, and testing of over 100 software-defined satellites. As the program progresses, EchoStar may increase the number of satellites in the network to more than 200, with a potential total value of up to US$2.5 billion (around C$3.5 billion). Future growth may see thousands of satellites deployed to meet global demand.
MDA Space’s AURORA™ D2D satellites will be fully compliant with the newly established NTN and 3GPP standards, ensuring seamless interoperability between satellite networks and existing terrestrial cellular infrastructure. This compliance enables EchoStar to offer messaging, voice, broadband data, and video services directly to standard 5G mobile devices without the need for any additional modifications. The constellation will also be capable of connecting to a variety of sensors and mobile vehicles, expanding its scope beyond traditional communication uses.
“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 solidifies its role as the anchor customer for MDA Space’s 3GPP 5G NTN compliant satellite product. This milestone further strengthens MDA Space’s position at the forefront of the NTN market, ensuring that mobile and Internet of Things (IoT) devices can directly connect to satellites in LEO. This capability is particularly valuable for extending connectivity to remote, underserved areas that lack traditional terrestrial networks.
“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.”
MDA’s AURORA™ D2D satellites are designed with a range of advanced technical features. These include a large user antenna for optimal connectivity, a 3GPP-compliant onboard processor, and optical intersatellite links that form a robust mesh network in orbit. Additionally, the satellites are equipped with differentiated chip technology, offering tailored solutions that evolve with the D2D market’s demands, as well as a high-power and efficient satellite platform.
The production of the EchoStar LEO constellation will take place at MDA Space’s advanced satellite manufacturing facility in Montreal, which is currently undergoing a significant expansion of 185,000 square feet to accommodate the increased production capacity. The first tranche of satellites is expected to be delivered in 2028, with commercial services set to begin in 2029.
This contract marks the fourth LEO constellation agreement awarded to MDA Space in the past three years, underscoring the company’s growing leadership in the satellite communications industry. The EchoStar contract is slated to be added to MDA’s backlog in the third quarter of fiscal 2025, further cementing the company’s position as a key player in the rapidly growing NTN market.