Hughes Communications

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Hughes Communications, Inc.
Type Subsidiary
Headquarters Germantown, Maryland, U.S.
Area served Worldwide
Key people Pradman Kaul
(Chairman, President and CEO)
Revenue Increase US$ 1.043 billion (2010)[1]
Operating income Increase US$ 85.62 million (2010)[1]
Net income Increase US$ 22.79 million (2010)[1]
Total assets Increase US$ 1.363 billion (2010)[1]
Total equity Increase US$ 340.0 million (2010)[1]
Employees 2,254 (December 2010)[1]
Parent Echostar
Subsidiaries Hughes Network Systems←
Website Hughes.com

Hughes Communications is a provider of satellite-based communications services. The company operates its satellite business through its wholly owned subsidiary, HughesNet.

In 2011, Hughes was acquired by EchoStar in a deal valued at US$1.3 billion.[2]

Subsidiaries

Hughes Network Systems

A wholly owned subsidiary, Hughes Network Systems is a provider of broadband satellite network products for businesses and consumers. Headquartered outside Washington, D.C., in Germantown, Maryland, USA, it maintains sales and support offices worldwide and employs approximately 1,500 people, in engineering, operations, marketing, sales and support. It also operates manufacturing facilities in Gaithersburg, Maryland. It first opened its doors in 1971 as a division of Hughes Aircraft's GM-merged subsidiary Hughes Electronics, which expanded in 1980 with the purchase of M/A-COM Telecommunications. In January 2003, the company was sold to SkyTerra Communications.

HughesNet

HughesNet is the brand under which Hughes Network Systems[3][4] provides its one-way and two-way satellite Internet access technology and service in United States and Europe. HughesNet provides satellite internet access cross the contiguous United States in areas with a clear view of their satellite(s). From the United States these satellites are located in the southern sky. Originally branded as DirecPC and later DIRECWAY, it originally marketed to business customers as a side venture to the consumer product DIRECTV. In October 1996, operating as an independent entity, Hughes Communications expanded into the consumer market, primarily targeting "work-at-home consumers who might otherwise use ISDN".[3][4] It officially changed its name on March 27, 2006. HughesNet services are sold directly throughout North America, and in Brazil, Europe, and India from authorized service providers and resellers. HughesNet offers downstream rates between 1 Mbit/s and 2 Mbit/s.[5]

HughesNet pricing plans include daily data allowances which, when reached or exceeded, will result in data transfer speed reductions to speeds comparable to dial-up. They do not have monthly data restrictions, but typical daily data allowances are at or below 500 MB. The basic package traditionally comes with 250 MB per 24-hour period, with larger packages available at a significantly higher rate. Exceeding data allowances causes the subscriber's speed to be capped at a reduced rate until the next day. Unlike other services they have an unlimited "Download Zone" from 2 a.m. to 8 a.m. ET every day.[6] With the use of a download manager it is possible to take full advantage of this window for software updates, game downloads, etc.

Latency is a serious issue with any communication to satellites in geosynchronous orbit, since it takes approximately a quarter second at the speed of light to travel from earth to the satellite and back. This compares poorly with conventional fiber optic land lines, which typically take a thirtieth of a second or less to cross a continent.

Hughesnet has a 24-month contract period. There are high cancellation fees if the contract is ended early. At the end of service, customers are required to remove equipment from the roof or pay a substantial fee. Alternatively, HughesNet will send a technician to remove the equipment for a $100 fee.

On July 5, 2012 EchoStar launched their EchoStar XVII satellite.[7] This satellite provided 100 Gbit/s of capacity to their HughesNet product. In Q4 of 2012 HughesNet began offering their Gen4 product. This product offers two-way satellite internet speeds of up to 15 Mbit/s and data allowances up to 40 GB.[8]

Actual costs and/or data plans and daily limits may change and are updated on their website.

References

  1. ↑ 1.0 1.1 1.2 1.3 1.4 1.5 "2010 Form 10-K, Hughes Communications, Inc.". U.S. Securities and Exchange Commission. 
  2. ↑ de la Merced, Michael (February 14, 2011). "EchoStar in $2.0 Billion Deal for Hughes Communications". New York Times. 
  3. ↑ 3.0 3.1 McCarthy, Shira (October 14, 1996). "Hughes brings DirecPC home". Telephony Online. Penton Media. Retrieved December 17, 2009. 
  4. ↑ 4.0 4.1 "Hughes Announces DirecPC(TM) Developed with ISR Device Driver". Archived from the original on April 1, 2002.  (Original page returns "Error 404" as of February 14, 2011)
  5. ↑ "HughesNet: Broadband unbound". Satellite Star Internet. Retrieved July 18, 2011. 
  6. ↑ "HughesNet Services". HughesNet. Retrieved July 10, 2012. 
  7. ↑ "EchoStar XVII Launch Page". EchoStar. Retrieved September 29, 2012. 
  8. ↑ "New satellite to offer speeds comparable to DSL and Cable to residents living in rural areas.". A-SAT. Retrieved September 29, 2012. 

External links

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