Hughes Lands Multiple Global Contracts, Reports 2Q
As read on www.skyreport.com
Broadband satellite solution provider Hughes Network Systems signed multiple contracts with Thuraya Satellite Telecommunications, a mobile satellite voice and data service provider reaching one-third of the planet's population. Worth nearly $60 million, the contracts are an extension of a multi-year relationship between the companies.
According to Hughes, the contracts are for the development and supply of a high-speed mobile data system, including a gateway and 2000 mobile/transportable terminals; the addition of a Secondary Gateway Ground Station and Advanced Operations Center to be installed at a new site in UAE; and the provision of 1500 additional mobile system voice circuits.
Thuraya is one of the largest satellite operators serving more than two billion customers across Europe, North and Central Africa and large parts of Southern Africa, the Middle East and Central and South Asia. The company said the new high-speed data system with accompanying satellite terminals will enable Thuraya to offer broadband data services of up to 384 Kbps over an IP-based network.
In addition, Hughes will supply a Secondary Gateway that will act as a redundant gateway, and also perform load sharing functions for the existing Primary Gateway located in the UAE. Hughes will also supply Thuraya with 1500 additional mobile system voice circuits. These additional voice circuits will enable Thuraya to approximately double the 250,000-plus subscribers on its existing system, utilizing portable, cellphone-sized handsets that combine satellite, GSM cellular and GPS functionality.
In related news, revenue in Hughes' wholly owned subsidiary, HNS, was $208.5 million in 2Q06, an increase of 4 percent over $199.9 million for the same period last year. For the six month period ended June 30, 2006, HNS revenue was $405.3 million, an increase of 7 percent over revenue of $378.2 million in the same period in 2005. Net loss for the second quarter was $4.4 million compared to net income of $4.1 million in the same period in 2005.