Satellite communications firm EchoStar is moving ahead with plans to join the global direct-to-device (D2D) satellite race via a new LEO satellite constellation, and has awarded an initial US$1.3 billion contract to MDA Space to help build it.
EchoStar intends to launch a non-terrestrial network (NTN) LEO satellite constellation to provide global voice, text and broadband services directly to standard 5G NTN handheld devices. The initial constellation will comprise 200 satellites, which can be expanded as demand grows.
The contract with MDA Space, announced on Friday, covers the design, manufacturing and testing of the first tranche of over 100 software-defined MDA Aurora D2D satellites for the system. The MDA Aurora satellites support optical intersatellite links that enable a mesh network configuration. MDA Space said the satellites are also fitted with an onboard processor compliant with 3GPP 5G NTN standards and Open RAN for seamless integration with terrestrial networks.
While the initial contract for the first batch of LEO satellites is valued at US$1.3 billion, the full contract for over 200 satellites is valued at US$2.5 billion. The LEO project is estimated to cost US$5 billion in total, including launch services and gateways.
MDA Space is scheduled to deliver the first batch of LEO satellites in 2028, with commercial service starting in 2029.
EchoStar is planning to offer its D2D constellation primarily as a wholesale option for mobile operators that want to add an NTN option for 5G customers, according to Via Satellite. EchoStar said all devices that support 3GPP NTN specs – to include sensor and mobile vehicles – can use the service.
Unlike D2D players like Starlink, Lynk Global and AST Spacemobile that aim to use existing terrestrial mobile spectrum, EchoStar’s constellation will utilize 2-GHz S-band frequencies usually reserved for mobile satellite services (MSS).
Currently, EchoStar holds exclusive licences in the 2-GHz band in the US, as well as 30 MHz of 2-GHz licenses in Europe, 40 MHz in Canada through a long-term partnership, 20 MHz in Mexico, and 30 MHz in Brazil.
"The market-leading technical innovation provided by MDA Space along with our global S-band/2-GHz spectrum rights with the highest ITU priority, and our strong service delivery capabilities will enable us to serve the consumer, enterprise, public safety and government sectors in the US, Europe and beyond,” said EchoStar president and CEO Hamid Akhavan in a statement.
