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Hughes Network Systems

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Hughes Network Systems, LLC
Company typeSubsidiary
IndustrySatellite networks and services
Founded1971;53 years ago(1971)(Digital Communications Corp)
HeadquartersGermantown,Maryland,U.S.
Area served
Worldwide
Key people
  • Hamid Akhavan (CEO,EchoStar)
  • Paul Gaske (COO,Hughes Network Systems and EchoStar)
[1]
ServicesGlobal communications
Revenue$1.97 billion (2022)[2]
Number of employees
2,000 (2022)[3]
ParentEchoStar
ASNs6621,63062Edit this at Wikidata
WebsiteHughes

Hughes Network Systems, LLCis a wholly owned subsidiary ofEchoStar.[4]It is headquartered inGermantown, Marylandand providessatellite internet service.[5]HughesNet has over a million subscribers in the Americas in late 2023,[6]down from 1.4 million in early 2022.[7]

History

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Hughes Communications was founded in 1971 under the name Digital Communication Corporation (DCC)[8]by a group of seven engineers and a lawyer led by John Puente and Dr. Burton Edelson,[9]who all previously worked together atComsat Laboratories.[10]With $40,000 in startup capital,[10][11]the company operated from a garage inRockville, Maryland,designing circuit boards for telecom related products.[10][12]

By 1977, Digital Communications Corp. had 250 employees and $10.6 million in revenue.[13]In 1978, Digital Communications Corp. was acquired by Microwave Associates for an undisclosed sum,[13][a]becoming MA/COM-DCC and began developing satellite related products.[14]The company invented the very small aperture terminal (VSAT) in 1985.[15]That year, the company sold its first VSAT network to Wal-Mart, which used the “technology to connect retail stores in rural areas.”[16]According to SatMagazine, “the global VSAT market is estimated to reach $10 billion by 2021.”[17]In 1987, MA/COM-DCC was acquired byHughes Aircraft Corporationfor $105 million and renamed Hughes Communications.[18]

In 2004,News Corpacquired a controlling interest in Hughes through a $6.5 billion purchase intended primarily for itsDirecTVunit.[8]DirecTV also began selling off its ownership interests, culminating in a $100 million sale to a private equity firm.[8]As a result, Hughes became a wholly owned subsidiary of SkyTerra Communications Inc., which was controlled by the investment firm.[8]Hughes Communications was spun-off as an independent public company in 2007 and was acquired byEchoStarfor about $2 billion in 2011.[19][b]

In May 2024,Dish NetworkandHughes Network Systems,bothEchostarcompanies announced a new bundled service of Dish satellite TV withHughesnetsatellite internet.[21]

Technology and services

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HughesNet is Hughes Network Systems' satellite-based broadband internet service. As of 2018, Hughes controls 69 percent of the market for residential satellite-based internet connections, which are mostly used by rural customers out-of-reach of wired infrastructure.[22]Hughes also markets its services to government, business, and military.[23]

Satellite systems

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In 2012, Hughes launched the Jupiter (stylized as JUPITER) System, Hughes' VSAT ground system that provides high-performance terminals, increased gateway architecture, and advanced air interface[24]for both high-throughput and conventional satellites. The Jupiter System supports applications such as broadband Internet and Intranet access, community Wi-Fi hotspots, cellular backhaul,digital signageand mobility, including airborne services.[25]

Through its Jupiter Aero System, an integrated system of airborne and ground equipment and software, Hughes provides broadband access to aircraft.[26]As of 2018, about 1,000 aircraft carry Hughes technology on board.[27]

In March 2018, Hughes announced improvements to the Jupiter system, doubling the throughput of HT2xxx terminals to more than 200 Mbit/s and increasing capacity.[28]

Hughes HX and HT satellite broadband platforms are used for broadband IP services, high speed internet, VoIP, and video by telecom providers around the world and the military.[26][29][30][31][32]

Hughes has deployed more than 9 million VSAT terminals of all types in more than 100 countries, representing more than 50 percent market share.[33]

Satellite services

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Hughes satellite backhaul of cellular service extends 4G/LTEservice to remote and rural areas around the world, specifically where conventional backhaul is difficult or costly due to geography and terrain.[34][35][36][37]

Hughes cellular backhaul applications include a 4G/LTE optimization capability that yields up to 60 percent bandwidth savings.[37]

HughesNet

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In 1996, Hughes introduced a satellite Internet service for consumers and small businesses. The service was originally known as DirecPC[38]and was renamed Direcway in May 2002.[39]On March 27, 2006, it was renamed HughesNet. In 2012, Hughes introduced its first offering of broadband satellite Internet.[40]In March 2017, Hughes became the first satellite-basedinternet service providerto meet theFederal Communications Commission's definition of "broadband" with HughesNet Gen5 after launching the EchoStar XVII and XIX high-throughput satellites.

In 2016, Hughes expanded HughesNet intoBrazil,marking its first international expansion of the service.[41]It expanded intoColombiain September 2017,[42]intoPeruin October 2018,[43]intoEcuadorin December 2018,[44]and intoMexicoandChilein 2019.[45][46]

The FCC Measuring Broadband America report ranked HughesNet number one among all internet service providers for meeting or exceeding advertised download speeds for four years in a row from 2014 through 2017. For three out of four years (2014, 2015 and 2017), HughesNet ranked number one for meeting or exceeding both download and upload advertised speeds.[47]HughesNet was named the Best Rural Internet Provider of 2022 and Best Satellite Internet Provider of 2022 byU.S. News & World Report360 Reviews.[48]

The long distance to thegeosynchronous orbitused by HughesNet increaseslatencyto over 600 ms, over 10 times more than terrestrial orlow Earth orbitsystems likeStarlink,rendering it much less competitive for applications likevideoconferencingandvideo gaming.[49]

Managed network services

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Hughes offers managed network services for distributed enterprise businesses and government organizations. Its HughesONmanaged servicesincludeSD-WAN,Wi-Fiand location analytics and cloud-based digital signage and employee training.[50]

See also

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Explanatory notes

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  1. ^Another sources says it was $8 million.[14]
  2. ^Another source says $1.3 billion.[20]

References

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  1. ^"Pradman Kaul to Retire After Nearly 50 Years With Hughes Network Systems".satellitetoday.Retrieved2023-05-10.
  2. ^"Hughes Revenue Slightly Up in 2022 Despite Subscriber Decline".satellitetoday.Retrieved2023-05-10.
  3. ^"Hughes' MSP, MSSP Market Expansion".MSSPAlert.Retrieved2023-05-10.
  4. ^"EchoStar acquires Hughes Communications - IHS Technology".technology.ihs. Archived fromthe originalon 2019-11-11.Retrieved2019-11-11.
  5. ^Knapp, Alex."Hughes Network Systems Is Launching High-Speed Satellite Internet For North America".Forbes.Retrieved2019-11-11.
  6. ^Rainbox, Jason (12 January 2024)."Jupiter-3 enters commercial service".SpaceNews.Retrieved15 January2024.
  7. ^"Hughes Jupiter-3 Satellite Pushed to Early 2023, EchoStar Explores Potential Acquisitions".satellitetoday.Retrieved2023-05-10.
  8. ^abcdMcCarthy, Ellen (November 11, 2005)."DirecTV to Sell Hughes Investment".Washington Post.RetrievedJanuary 31,2018.
  9. ^"About Hughes | HUGHES".
  10. ^abcMills, Mike (August 25, 1997). "The Sky's the Limit for Hughes".The Washington Post.
  11. ^Shay, Kevin James (January 20, 2011)."EchoStar closes on $2B purchase of Hughes Communications of Germantown".The Gazette.Archived fromthe originalon June 22, 2018.RetrievedJanuary 1,2018.
  12. ^Belson, Ken (November 14, 2006)."With a Dish, Broadband Goes Rural".The New York Times.RetrievedFebruary 2,2018.
  13. ^ab"Digital Firm Purchased".The Washington Post.February 23, 1978.
  14. ^abRosenberg, Ronald (November 18, 1990). "Motivating M/A Com".Boston Globe.
  15. ^Sachdev, D.K.Recent Successful Satellite Systems: Visions of the Future.American Institute of Aeronautics and Astronautics, Inc.
  16. ^Berlocher, Greg (1 September 2010)."Advances Keep VSATs Relevant in Changing Market - Via Satellite -".Via Satellite.Retrieved30 January2019.
  17. ^Good, Steve."SatMagazine".satmagazine.Retrieved30 January2019.
  18. ^"Hughes to Buy IBM Satellite Leasing Operation".The Los Angeles Times.July 8, 1989.RetrievedJanuary 1,2018.
  19. ^"EchoStar To Buy Hughes Communications For $2 Billion".Forbes.February 14, 2011.RetrievedFebruary 2,2018.
  20. ^Merced, Michael J. de la (February 15, 2011)."EchoStar in $1.3 Billion Deal for Hughes Communications".DealBook.RetrievedFebruary 2,2018.
  21. ^Corporation, EchoStar."DISH TV and Hughes Debut First Bundled Service Offering to Enhance Connectivity and Entertainment Across Rural America".prnewswire.Retrieved2024-05-28.
  22. ^"The Space Race Among Internet Service Providers".The Motley Fool.Retrieved2023-05-10.
  23. ^Holmes, Mark (10 November 2011)."Hughes Collaborates with TCS in Military/Government Market - Via Satellite -".Via Satellite.Retrieved15 February2019.
  24. ^Batambuze III, Ephraim (9 May 2016)."Eutelsat and Facebook Choose Hughes JUPITER™ System For Africa Broadband Initiative".PC Tech Magazine.Retrieved15 February2019.
  25. ^Nyirady, Annamarie (10 December 2018)."Hughes Brings Satellite Internet Service to Ecuador - Via Satellite -".Via Satellite.Retrieved15 February2019.
  26. ^abNichols, Steve (8 May 2018)."Hughes Jupiter infrastructure in place for Thales FlytLive".Get Connected.Retrieved15 February2019.
  27. ^Kirby, Mary (26 June 2018)."EchoStar's Hughes eyes growth within aero sector".Runway Girl.Retrieved15 February2019.
  28. ^Baumgartner, Jeff (13 March 2018)."Hughes Beefs Up Throughput on 'Jupiter' Satellite Platform".Multichannel.Retrieved15 February2019.
  29. ^Henry, Caleb (14 October 2014)."Hughes Begins Marketing Rotary-Specialized Waveform - Via Satellite -".Via Satellite.Retrieved15 February2019.
  30. ^Henry, Caleb (3 June 2015)."Hughes Awarded Broadband Satellite System Contract by IPSAT - Via Satellite -".Via Satellite.Retrieved15 February2019.
  31. ^"Hughes opens new satellite hub in India targeting enterprise and SMBs".TelecomLead.12 October 2017.Retrieved15 February2019.
  32. ^Sachdev, D.K.Recent Successful Satellite Systems: Visions of the Future.American Institute of Aeronautics and Astronautics, Inc. p. 306.
  33. ^"2021 AIAA Aerospace Communications Award Honors Pradman Kaul of Hughes Network Systems".SatNews.Retrieved2023-05-10.
  34. ^Team, BS Web (11 September 2018)."RJio mulls to use satellites to provide 4G LTE connectivity in remote areas".Business Standard India.Retrieved6 March2019.
  35. ^"Reliance Jio to use ISRO's satellite to provide 4G services in rural, remote areas".Business Today.11 September 2018.Retrieved6 March2019.
  36. ^Mann, Colin (17 December 2018)."Yahsat, Hughes finalise broadband satellite JV".advanced-television.Retrieved6 March2019.
  37. ^ab"African telecom operators select Hughes Jupiter system to enable satellite connectivity".BroadcastPro ME.13 November 2018.Retrieved6 March2019.
  38. ^"Hughes Hasn't Been This Sexy Since... Thanks to DirecTV, its satellite broadcast service, Hughes Electronics morphed from a defense giant into a white-hot media property. Will Rupert Murdoch get his wish to buy it? - February 5, 2001".archive.fortune.Retrieved2019-03-06.
  39. ^Wireless Satellite & Broadcasting.Information Gatekeepers Inc.
  40. ^"Hughes updates its HughesNet satellite broadband with Gen4 service".Engadget.Retrieved2019-03-06.
  41. ^Henry, Caleb (29 June 2016)."HughesNet Satellite Internet Makes Debut in Brazil - Via Satellite -".Via Satellite.Retrieved6 March2019.
  42. ^Russell, Kendall (3 October 2017)."Hughes Introduces Satellite Internet Service in Colombia - Via Satellite -".Via Satellite.Retrieved6 March2019.
  43. ^Riofrío, Marcela Mendoza (30 October 2018)."Osiptel: se intensifica competencia en Internet al hogar en Perú con HughesNet".El Comercio(in Spanish).Retrieved6 March2019.
  44. ^Nyirady, Annamarie (10 December 2018)."Hughes Brings Satellite Internet Service to Ecuador - Via Satellite -".Via Satellite.Retrieved6 March2019.
  45. ^"Hughes to launch satellite broadband service in Mexico".Fierce Telecom.Retrieved2023-05-10.
  46. ^"HUGHESNET CELEBRATES THREE YEARS IN CHILE".WorldTeleport.org.Retrieved2023-05-10.
  47. ^"Satnews Publishers: Daily Satellite News".Sat News.Retrieved6 March2019.
  48. ^"HughesNet named best in 2 divisions by US News & World Report".The Daily Record.Retrieved2023-05-10.
  49. ^"PCMag Study: Starlink speed and latency top satellite Internet from Hughes and Viasat's Exede".Technology Blog.2020-11-05.Retrieved2022-02-22.
  50. ^"HughesOn Managed Network Services | Secure Managed Broadband".government.hughes.Retrieved6 March2019.
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