ENGLEWOOD, Colo. - EchoStar Corporation (NASDAQ: SATS) has secured a contract through its subsidiaries Hughes Network Systems and Boost Mobile to provide 5G wireless services and devices to the U.S. Department of Defense (DoD) and other federal agencies. The contract, awarded as part of the U.S. Naval Supply Systems Command Spiral 4 program, is valued at up to $2.7 billion over a decade.
The Spiral 4 program, administered by the U.S. Navy, aims to supply smartphone devices and potentially additional 5G-enabled equipment such as tablets and IoT devices. It covers all 50 U.S. states, U.S. territories, and temporary duty international travel for DoD usage. The program includes a base year starting this month, with nine one-year option periods extending through 2034.
EchoStar's president technology and COO, John Swieringa, stated that the company is "proud to provide the DoD and other federal agencies with significant technological advancement using our innovative, Open-RAN based wireless connectivity capabilities." He added that EchoStar, through Boost Mobile, will deliver 5G solutions encompassing devices from various manufacturers and a native 5G Open RAN network.
The contract stipulates the delivery of mobile devices and service plans, along with customer service, support, and reporting accessible through an online portal. It also requires Radio Access Networks (RAN) that support Radio over Internet Protocol (ROIP) and Citizen Band Radio Services (CBRS).
EchoStar is known for providing technology and networking services, as well as television entertainment and connectivity solutions under multiple brands including EchoStar®, Boost Mobile®, and Hughes®. The company operates globally, with subsidiaries in Europe and Australia.
This new contract represents a significant commitment by the U.S. government to modernize its telecommunications infrastructure and echoes the growing importance of 5G technology in both military and civilian applications.
The information for this report is based on a press release statement from EchoStar Corporation.
InvestingPro Insights
As EchoStar Corporation (NASDAQ: SATS) embarks on a major contract to enhance 5G capabilities for the U.S. Department of Defense, the company's financial health and market performance come into focus. According to InvestingPro data, EchoStar's market capitalization stands at $4.31 billion, reflecting the size and significance of the company within the industry. Despite challenges, the company has demonstrated a strong return over the last six months, with a 67.33% increase, indicating a positive market response.
InvestingPro Tips highlight that EchoStar operates with a significant debt burden and is quickly burning through cash. These factors are crucial for investors to consider, especially in light of the company's recent contract win which could impact its financial trajectory. Additionally, the company does not pay a dividend to shareholders, which may influence investment decisions for those seeking income-generating stocks.
For a deeper analysis and more InvestingPro Tips on EchoStar Corporation, interested readers can explore further at https://www.investing.com/pro/SATS. With 15 additional tips available on InvestingPro, users can gain a comprehensive understanding of the company's financial health and market position. To access these insights, use the coupon code PRONEWS24 to get an additional 10% off a yearly or biyearly Pro and Pro+ subscription.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.