Satellite operator EchoStar has tapped MDA to build its new Low Earth Orbit satellite fleet.

EchoStar Corporation has selected MDA Space Ltd. as prime contractor for the design, manufacture, and test of the first tranche of a new direct-to-device LEO constellation, formed of software-defined MDA Aurora satellites.

This initial contract comprises 100 satellites for $1.3 billion, though the full configuration of the system will total 200 machines, which MDA estimates would increase the approximate value of the contract to $2.5 billion.

With the potential to expand to thousands as demand necessitates, the constellation will provide talk, text, and broadband directly to standard 5G NTN handheld devices globally.

“Our satellite expertise combined with our US-based terrestrial 5G Open RAN network uniquely positions EchoStar to execute on this new large-scale wideband LEO constellation," said Hamid Akhavan, president & CEO of EchoStar, in a statement.

"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 service delivery capabilities, will enable us to serve the consumer, enterprise, public safety, and government sectors in the US, Europe, and beyond. Critically, this will foster US leadership in the growing space economy."

Following the acquisition of DBSD and TerreStar, which held 2GHz FCC licenses and a total of three S-band GEO satellites, EchoStar estimates it has invested “well over $13 billion” in the 2GHz band since 2012. During that time, EchoStar has sought to standardize 2GHz at 3GPP for 5G, and to develop NTN 3GPP standards.

Beyond acquisitions, its $13 billion figure estimate also comprises the integration, deployment, and operation of the 2GHz band, including the adjacent H-Block, as part of a virtualized cloud-native 5G open RAN network in the US, which the company believes will be the world’s first, as well as the launch of three 2GHz Lyra satellites, ground station equipment, and other expenses.

The contract makes EchoStar the anchor customer of the MDA Aurora D2D satellite by 2028, and represents the company’s fourth LEO constellation contract in just over three years. Production of the first tranche will be added to MDA’s backlog in the third quarter of 2025 for delivery in 2028 to enter commercial service starting in 2029.

EchoStar estimates the total cost of its new LEO project will sit around $5bn.