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EchoStar's (SATS) ORCID Advances O-RAN Testing & Deployment

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EchoStar Corporation (SATS - Free Report) recently unveiled the Open RAN Center for Integration and Deployment (“ORCID”) at its Cheyenne, WY, data center facility. Funded 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, ORCID aims to advance the development, deployment and adoption of open and interoperable standards-based radio access networks (RAN).

The ORCID facility offers a unique "living laboratory" environment where vendors can test and validate O-RAN solutions by leveraging SATS’ live commercial-grade cloud-native O-RAN network. This initiative is likely to boost the O-RAN ecosystem by transitioning from lab-based trials to real-world commercial deployments.

SATS is in charge of managing the ORCID consortium, which includes industry giants like Fujitsu, Mavenir and VMware by Broadcom, along with various other technology partners. Together, these organizations have validated O-RAN technology on a national scale, engineering a 5G network that ensures connectivity to more than 240 million Americans.

The joint donation from NTIA and Innovation Fund was declared at an EchoStar 5G site in Las Vegas six months before the launch of ORCID. It highlights the government's support for advancing wireless technology. The fund's $50 million grant underscores the importance of developing secure and resilient wireless supply chains.

Englewood, CO-based SATS is a global provider of technology and connectivity solutions. With brands like Boost Mobile, Sling TV, DISH TV, Hughes, HughesNet, HughesON and JUPITER, the company offers a broad spectrum of consumer, enterprise, operator and government solutions. It operates worldwide, with EchoStar Mobile Limited serving Europe and EchoStar Global Australia serving Australia’s market.

The company is continuously working to expand its footprint across various emerging markets. In June 2024, SATS’ unit EchoStar Mobile Limited tied up with Switzerland-based telecom giant Swisscom. By deploying its advanced capabilities, EchoStar mobile will aid Swisscom to enhance its Long Range Wide Area Network IoT coverage across European countries.

SATS’ revenues missed the Zacks Consensus Estimate of $4.07 million in the last reported quarter. Owing to net subscriber losses in Pay-TV, Retail Wireless and Broadband and satellite services, the top line fell 8.6% year over year to $4.01 million. However, innovative product launch strategies and the merger of EchoStar and DISH Network businesses are expected to be key growth drivers.

Currently, EchoStar carries a Zacks Rank #3 (Hold). The stock has gained 6.3% in the past year against the sub-industry's decline of 38.5%.

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