DoD Extends Contract for ORAN-based Private 5G Networks through 2025
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Insights
The extension of EchoStar's contract for 5G deployments at military bases is a strategic move, particularly in the context of national defense where secure and resilient communication networks are paramount. The focus on Open Radio Access Network (ORAN) technology is indicative of a broader industry trend towards more open, interoperable and vendor-neutral solutions, which can drive down costs and enhance innovation by allowing a mix of different vendors' products to work together.
The integration of Zero Trust Architecture (ZTA) and seamless satellite connectivity suggests a robust approach to cybersecurity and network resilience. ZTA is a cybersecurity paradigm that assumes no implicit trust is granted to assets or user accounts based solely on their physical or network location or based on asset ownership. This is critical in a defense setting where the risk of cyber-attacks is high. Moreover, the mention of NSA Commercial Solution for Classified (CSFC) requirements implies that the network must handle classified information securely, which is a stringent standard within the industry.
From a business perspective, this contract extension is likely to have a positive impact on EchoStar's financial performance, as government contracts tend to provide stable and significant revenue streams. The partnership with established companies like Cisco, Dell Technologies and Intel also highlights EchoStar's capability to lead complex projects and might influence investor perception positively.
The Department of Defense's decision to extend EchoStar's contract for 5G network deployments underscores the growing importance of advanced telecommunications infrastructure in modern military operations. The reference to automated base operations indicates a push towards more efficient and responsive military support systems, which could lead to improved operational readiness and cost savings in the long term.
Furthermore, the prototype networks being developed could serve as a blueprint for future DoD communications infrastructure, potentially opening up additional market opportunities for EchoStar and its industry partners. The successful launch at NASWI and the subsequent extension for additional enhancements suggest a level of satisfaction with EchoStar's performance that could lead to further contracts.
Investors should note that projects of this nature typically involve long development cycles and substantial upfront investment, but they can also lead to long-term engagements and opportunities for follow-on work. The emphasis on ORAN, ZTA and CSFC compliance positions EchoStar at the forefront of next-generation secure communications technology, which may be attractive to other government and commercial customers seeking similar capabilities.
The integration of Zero Trust Architecture (ZTA) into EchoStar's 5G network solutions for the DoD is a significant development. ZTA's 'never trust, always verify' principle is especially relevant in the context of military communications, where the stakes are high and network breaches can have grave consequences. The use of ZTA, in conjunction with the Commercial Solutions for Classified (CSFC) program, which enables the use of commercial products in classified systems, reflects a sophisticated approach to protecting sensitive government data.
The resilience provided by the combination of terrestrial and non-terrestrial network components, such as satellite connectivity, is important for maintaining communications in diverse scenarios, including those where traditional infrastructure may be compromised. This could be particularly beneficial during operations in remote or contested environments.
The cybersecurity implications of this contract extension are profound. As the DoD continues to evolve its capabilities, the demand for advanced cybersecurity measures will grow, potentially benefiting companies like EchoStar that have proven competencies in this area. This could lead to increased investor confidence in EchoStar's ability to manage complex security requirements and maintain a competitive edge in the defense sector.
Contract Extension Awarded for 5G Deployments at bases in
"The award extension demonstrates the value of this multi-vendor solution and follows the successful launch of the 5G network at Naval Air Station Whidbey Island – the first 5G ORAN at a
EchoStar subsidiary Hughes leads the deployments as the prime contractor, integrating standards-based, best-of-breed components, like radio access, edge cloud, and a packet processing core, with Zero Trust Architecture (ZTA) and seamless, global satellite connectivity augmented by embedded Network Operations Capabilities (NOC) and Security Operations Capabilities (SOC). The project is using ORAN infrastructure and engineering expertise along with EchoStar's 5G spectrum. There are transport routers, switches, and firewalls from Cisco; computing infrastructure from Dell Technologies; radio access network (RAN) from JMA Wireless; edge cloud stack and Intel® Xeon® processors from Intel; and site survey and network installation services from Boingo Wireless.
Rick Lober, vice president and general manager, Hughes Defense, said: "The DoD's extension of the 5G award is a validation of the EchoStar bench of engineering expertise and our ability to customize solutions using best available technologies across terrestrial and non-terrestrial systems. We are proud to join our industry partners in architecting, deploying, and operating the prototype networks that will set the foundation for 5G standalone ORAN and resilient networks for the DoD going forward."
The initial NASWI deployment was completed with a ribbon-cutting ceremony on March 30, 2023 to commemorate the launch of the standalone 5G network. The deployment improves aircraft readiness by enabling immediate, real-time communication coordination across the flight line to reduce maintenance time and decrease preparation time between missions.
Both deployments are designed to support National Security Agency (NSA) Commercial Solution for Classified (CSFC) requirements. This contract extension comes under an Other Transaction Agreement (OTA) issued through the Information Warfare Research Project (IWRP) consortium as part of on-going 5G experimentation led by the Under Secretary of Defense for Research and Engineering (OUSD(R&E)) FutureG Office.
To learn more about delivering secure communications, anytime, anywhere, please visit the website.
About EchoStar
EchoStar Corporation (Nasdaq: SATS) is a premier provider of technology, networking services, television entertainment and connectivity, offering consumer, enterprise, operator and government solutions worldwide under its EchoStar®, Boost Mobile®, Boost Infinite, Sling TV, DISH TV, Hughes®, Hughesnet®, HughesON™, and JUPITER™ brands. In
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SOURCE EchoStar Corporation
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