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EchoStar Launches Open RAN Center for Integration and Deployment (ORCID)

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EchoStar (Nasdaq: SATS) has launched the Open RAN Center for Integration and Deployment (ORCID), a state-of-the-art testing and evaluation lab for Open RAN (O-RAN) solutions. The facility, located at EchoStar's Cheyenne, Wyoming data center, is supported by a $50 million grant from the U.S. Department of Commerce's NTIA Public Wireless Supply Chain Innovation Fund.

ORCID offers vendors the opportunity to test and validate O-RAN solutions using EchoStar's live commercial-grade cloud-native Open RAN network. The center features a real field test setup, helping drive the O-RAN ecosystem from lab to commercial deployment. EchoStar manages the ORCID consortium, which includes partners like Fujitsu, Mavenir, and VMware by Broadcom.

Vendors interested in participating in ORCID can now submit applications through the ORCID web portal at orcid.us/.

Positive
  • Received a $50 million grant from the NTIA Public Wireless Supply Chain Innovation Fund
  • Launched ORCID, a state-of-the-art Open RAN testing and evaluation lab
  • Offers vendors opportunity to test and validate O-RAN solutions on a live commercial-grade network
  • Manages ORCID consortium with partners like Fujitsu, Mavenir, and VMware by Broadcom
  • Built an O-RAN 5G network providing connectivity to over 240 million Americans
Negative
  • None.

Insights

The establishment of the Open RAN Center for Integration and Deployment (ORCID) represents a noteworthy advancement in the telecommunications landscape. Open RAN, or Open Radio Access Networks, is a novel approach to building mobile networks using open and interoperable hardware and software components. This is a significant departure from the traditional model where networks were constructed using proprietary solutions from a single vendor.

This move is particularly impactful because it aligns with the global push towards more flexible and cost-effective networking solutions. By promoting interoperability, ORCID could help vendors reduce dependency on single suppliers, potentially lowering costs and accelerating deployment times. It also encourages innovation, as multiple vendors can collaborate, test and validate their solutions in a real-world environment. The $50 million grant from the NTIA underscores the importance placed on this initiative by the US government, reflecting a strategic interest in leading the global Open RAN market.

However, there are also challenges. Interoperability between different vendors' components can sometimes lead to integration issues and performance variability. Ensuring that different solutions work seamlessly together requires rigorous testing and standardization, which ORCID aims to provide. The involvement of major tech players like Fujitsu, Mavenir and VMware by Broadcom enhances credibility and resource availability, facilitating smoother transitions from lab to commercial deployment.

From a financial perspective, the launch of ORCID could have multiple implications for EchoStar and its stakeholders. The $50 million grant from the Innovation Fund not only provides substantial initial funding but also positions EchoStar as a pivotal player in the emerging Open RAN market. This could attract further investment and partnerships, boosting the company's market valuation over time.

Moreover, the potential cost savings and improved time-to-market for vendors participating in ORCID can translate into more competitive pricing and faster revenue generation. This is especially pertinent in the rapidly evolving 5G market, where speed and cost efficiency are critical factors. For EchoStar, the establishment of ORCID could lead to new revenue streams from vendor partnerships and testing services.

However, investors should also consider the potential risks. Integration issues and interoperability challenges could delay progress and affect the perceived reliability of Open RAN solutions. Additionally, the competitive landscape in the telecom sector is intense and EchoStar will need to continue innovating to maintain its edge.

The Open RAN initiative spearheaded by EchoStar is poised to significantly impact the telecommunications market. Open RAN is seen as a game-changer, offering more flexibility and reducing the reliance on single-vendor ecosystems. This is particularly attractive in the current market environment where operators are seeking ways to cut costs and accelerate 5G deployment.

The ORCID's establishment in Cheyenne, Wyoming, also signifies a strategic geographical choice, potentially tapping into underutilized resources and fostering technological advancement in less dense areas. By providing a real-world testing environment, ORCID can accelerate the adoption of Open RAN solutions, which could lead to increased market share for participating vendors. The introduction of more interoperable and cost-effective solutions could compel traditional telecom giants to adapt or innovate, further intensifying market competition.

However, the success of ORCID will heavily depend on the active participation and collaboration of vendors. The lab's ability to provide a robust and seamless testing environment will be critical in gaining the trust and participation of key industry players. As this initiative progresses, it will be essential to monitor the dynamics between traditional telecom equipment providers and those embracing the Open RAN approach.

ORCID funded by $50 million Public Wireless Supply Chain Innovation Fund Grant, supporting global Open RAN investment

Vendors invited to apply for Open RAN commercial testing and evaluation opportunities

CHEYENNE, Wyo., July 15, 2024 /PRNewswire/ -- EchoStar Corporation (Nasdaq: SATS) today announced the launch of the Open RAN Center for Integration and Deployment (ORCID), a state-of-the-art Open RAN (O-RAN) testing and evaluation lab housed at EchoStar's Cheyenne, Wyoming, data center.

The facility, which is supported by a $50 million grant from the U.S. Department of Commerce's National Telecommunications and Information Administration (NTIA) Public Wireless Supply Chain Innovation Fund (Innovation Fund), offers vendors the opportunity to test and validate O-RAN solutions using EchoStar's live commercial-grade cloud-native Open RAN network.

"The Open RAN Center for Integration and Deployment (ORCID) is now open for business. We appreciate the trust and partnership of NTIA in this effort, which includes a historic $50 million grant from the Innovation Fund," said Charlie Ergen, co-founder and chairman, EchoStar. "ORCID represents a significant milestone in both EchoStar and the U.S.'s journey to drive and lead the adoption of open and interoperable radio access networks. We look forward to the groundbreaking advancements expected to emerge from this initiative."

The launch of ORCID, which comes six months after NTIA Administrator Alan Davidson and Innovation Fund Director Amanda Toman announced the Innovation Fund grant at an EchoStar 5G site in Las Vegas, provides trusted participants in the U.S. and around the world an opportunity to contribute to the development, deployment, and adoption of open and interoperable standards-based radio access networks. ORCID's "living laboratory" features a real field test setup, which will help drive the O-RAN ecosystem from the lab to commercial deployment. 

EchoStar manages the ORCID consortium, which includes Fujitsu, Mavenir, VMware by Broadcom, and a variety of other technology partners. EchoStar, with the help of its consortium partners, validated O-RAN technology at scale across the country, building an O-RAN 5G network that provides connectivity to more than 240 million Americans nationwide.

"We encourage vendors interested in advancing the future of Open RAN technology to reach out and see how to participate in ORCID," said Ravinder Jarral, VP of 5G Wireless Partner Engagement and Delivery and head of the ORCID program, EchoStar. "By partnering with ORCID, vendors can achieve substantial cost savings, faster time-to-market, improved quality of service, and rigorous validation for their O-RAN solutions." 

Vendors interested in participating in ORCID may now submit applications using the ORCID web portal at orcid.us/.

For more information on ORCID, please visit ORCID.us.

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®, Sling TV, DISH TV, Hughes®, HughesNet®, HughesON™, and JUPITER™ brands. In Europe, EchoStar operates under its EchoStar Mobile Limited subsidiary and in Australia, the company operates as EchoStar Global Australia. For more information, visit www.echostar.com and follow EchoStar on X (Twitter) and LinkedIn.

©2024 EchoStar. Hughes, HughesNet, DISH, and Boost Mobile are registered trademarks of one or more affiliate companies of EchoStar Corp.

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SOURCE EchoStar Corporation

FAQ

What is the Open RAN Center for Integration and Deployment (ORCID) launched by EchoStar (SATS)?

ORCID is a state-of-the-art Open RAN testing and evaluation lab launched by EchoStar, located at their Cheyenne, Wyoming data center. It offers vendors the opportunity to test and validate O-RAN solutions using EchoStar's live commercial-grade cloud-native Open RAN network.

How much funding did EchoStar (SATS) receive for the ORCID project?

EchoStar received a $50 million grant from the U.S. Department of Commerce's National Telecommunications and Information Administration (NTIA) Public Wireless Supply Chain Innovation Fund to support the ORCID project.

What companies are part of the ORCID consortium managed by EchoStar (SATS)?

The ORCID consortium managed by EchoStar includes partners such as Fujitsu, Mavenir, VMware by Broadcom, and various other technology partners.

How can vendors participate in EchoStar's (SATS) ORCID program?

Vendors interested in participating in the ORCID program can submit applications through the ORCID web portal at orcid.us/. This offers opportunities for testing and validating O-RAN solutions.

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