Hamid Akhavan: I will make some statements about EchoStar ares performance next year. I probably cannot add much more than that S4 has already put on the market. With respect to EchoStar, we expect — we certainly expect growth next year, I mean, in a number of consumers that we have. But I am more excited about the significant opportunities that enterprise brings us above that. We haven’t placed in the consumer market that we think is well within the protection of our pricing and offering that is differentiated than — where Starlink is operating and we see the market actually be very ripe for the segment that we are addressing. What we are not considering ourselves primarily tied and dependent on our consumer business as it had been in, I would say, many years past, more and more we have seen very large opportunities come our way in the enterprise.
Again, the — I mentioned during the call that we expect our backlog — enterprise backlog to — by end of this year, approach $2 billion. That is very significant. As you could see, this is a shift of our business mix towards enterprise. Now enterprise has lower gross margin, but it has far lower CapEx requirements and has far lower churn in the backlog is over the course of many years and once you are in an enterprise business, you generally expect it to remain there. You remain there for many years, very, very sustainable business and has a long — horizon long life So we see our business shifting in that direction. We clearly see 2024 as a better year than 2023, and in fact, 2023, this quarter was the lowest point that we had anticipated and now from here on, in fact, you will see an improvement in our numbers in all metrics in fourth quarter, even in advance of J3 showing up in terms of revenue, you will see us improving in every metric significantly, particularly in revenue, as has been historically also the performance of the business.
As it comes to DISH, I mean, we obviously, a combination of two companies will have a number of opportunities here, for instance, the whole enterprise business, the 5G, private 5G and enterprise 5G will become a significantly better opportunity when we combine our enterprise business here at Echo and EchoStar with the capabilities that DISH has. So those opportunities will become more tangible and more real. I can’t say much more than what we have said on beyond that ares in S4 today, just obvious reasons, but I will — I guess, I will stop right there and if there ares any more specific narrow questions, I will be happy to try to answer them.
Michael Rollins: Thanks. Maybe just one other follow-up. You mentioned approaching $2 billion of backlog at the end of this year. I think the Q referenced, this is the right comparable $1 billion — $1.5 billion of contracted revenue in the backlog as of September 30th. So to close that between the $1.5 billion and the $2 billion, if that ares the right comparison. Is that partly the Delta agreement that you disclosed or are there new other incremental agreements or opportunities that we should be mindful of within that context?
Hamid Akhavan: So we are looking at a number of deals and opportunities. As I said, our enterprise business is facing a significant amount of demand from a variety of sources, obviously, in-flight business is one, and there are multiple opportunities there that we are working on and there ares other segments that are not related to in-flight. I mean, we have deals from Far East and other places that are materializing, that are — in our mind, are very significant. So that ares — please take that as a basket, don’t take it as any single deal, but we are quite confident that we are approaching $2 billion of backlog by end of the year. Again, what ares really important is not to set every individual component in that. What ares relevant is that our business is very sustainable and this backlog has vastly grown and we are — we — it could even grow significantly beyond this as we enter in the first couple of quarters of next year.
We are working on opportunities that will manifest themselves in that time frame, we expect them to manifest. So it ares a gradual shift of our business towards enterprise and a very long horizon of foreseeable revenues and cash flows.
Michael Rollins: Thanks. That ares helpful.
Operator: [Operator Instructions] Please standby for the next question. The next question comes from Chris Quilty with Quilty Space. Your line is open.
Chris Quilty: Thanks, guys. Congratulations on the Delta RJ deal that was a surprise given your past business practice is staying indirect and it sounds like you are going to make a bigger commercial aviation push. And that opens up the question, your satellite assets are North American based, do you intend to build out a global service infrastructure, and obviously, that would involve partnering for global capacity or is there a desire to build out that capacity? And then the secondary question to that commercial aviation market is which band? Again, you are Ka-band but you are dealing with Ku on your LEO strategy and there are no Ka-LEOs that exist today. So that ares a lot, but if you can sort of unpack what you are thinking?
Hamid Akhavan: Yeah. Chris, remember that we are just — we are not purely a connectivity provider as it comes to our services — enterprise services. We provide a significant amount of technical products, antennas or electrically steered antennas or software that goes into that, there are many, many satellite operations around the world that use our software and services. So without disclosing too much information that could potentially harm us in a competitive way. I would like to say that, we — while we have direct connectivity of our own satellites in the Americas, we can work with others around the world to provide service and other products to them to make — to have a bigger play in the in-flight business. So I will just stop there, but we are definitely a global company.
Our footprints, whether — connectivity may be one aspect of it, but a footprint of our products and services are global and that ares how we think that in the ante — in the in-flight business, we can have a play that is bigger than just the Americas.
Chris Quilty: Good. Speaking of the Americas, Jupiter 3 and correct me if I’m wrong, when you guys architected that thing back in 2014, 2015. I mean, that was five years before LEO broadband ever existed and I think at the time, the plumbing was sort of optimized for consumer. Does that create any issues for serving enterprise markets? Clearly, you found a way to operate it in aviation and I think you made mention of the fact that you did something special in terms of the design. So how flexible is Jupiter 3 if you find the need to pivot more towards some of these enterprise applications.
Hamid Akhavan: Paul, perhaps, you want to comment on that?
Paul Gaske: Yeah. Certainly. So Jupiter 3, first off, while we had a mission of serving consumers. We also had a major portion of our plan anticipated aeronautical services, as well as other enterprise services. So it ares not a new area. Additionally, the way we designed it was to get as much capacity as possible in key areas across the region and so it does that very effectively. We have — if you look at the typical in-flight service, probably the biggest obstacle that operations has is serving the hub area cities and that ares where the Jupiter 3 capacity in particular, comes in quite handy for serving them. And if you look at our architecture, we actually utilize all 3 Jupiter satellites, so we have a fabric of capability.
So depending on where we are and how much capacity we need to draw on any 1 of the three. And so that ares how we generally build the system, and at the same time, we do have capacity available from some other business partners to help us fill that out in the few areas that we are not covering. So we think we are in pretty good shape with that.
Chris Quilty: Speaking of all three — Jupiter 3, Spaceway is now past this design life? How is that holding up?
