Hughes Communications to increase its satellite coverage in India
Hughes India hopes to use the combined strength of Hughes-EchoStar to tap opportunities in this space.
By Kalyan Parbat, ET Bureau |
KOLKATA: Hughes Communications, the $1.3-billion broadband satellite services provider, is planning to increase its high-capacity satellite coverage over India through a dedicated satellite system. The company, which was acquired by US broadcaster EchoStar Corp last week in a $2-billion deal, will use the satellite system for both broadband and broadcast operations, especially in rural areas.
India, with about 10 million broadband users at present, generates close to Rs 900 crore in revenues every year for Hughes Communications. Hughes India hopes to use the combined strength of Hughes-EchoStar to tap opportunities in this space.
"Hughes has an extensive fleet of owned and leased satellites that reach key emerging markets, but it is mulling an investment in a high-capacity satellite system to spruce up broadband coverage over India. This business model was recently tested in the US and can easily be replicated to deliver broadband across rural India. This can also be used to support the broadcasting business by leveraging EchoStar's strengths," said Pranav Roach, president of Hughes Network Systems India.
Hughes Network Systems India is a subsidiary of Hughes Network Systems LLC, the main operating subsidiary of Hughes Communications Inc. Hughes Communications was recently given the mandate to deliver satellite-based broadband connectivity to some 21 million homes in the US that were not being served by high-speed terrestrial broadband operators. The company believes similar opportunities exist in India too since bulk of the broadband connectivity offered by local terrestrial operators are not beyond the district headquarter level.
EchoStar has no immediate plans to enter the TV broadcasting space in India, but Hughes India executives say the dedicated satellite system can be used to deliver broadcasting-related applications for individuals and enterprise customers.
Once the project takes off, Hughes' three Indian subsidiaries - Hughes Communications India, Hughes Networks Systems India and Hughes Systique - are expected to develop applications and local content in the realm of e-education, e-governance, telemedia or banking, another company executive said.
India, with about 10 million broadband users at present, generates close to Rs 900 crore in revenues every year for Hughes Communications. Hughes India hopes to use the combined strength of Hughes-EchoStar to tap opportunities in this space.
"Hughes has an extensive fleet of owned and leased satellites that reach key emerging markets, but it is mulling an investment in a high-capacity satellite system to spruce up broadband coverage over India. This business model was recently tested in the US and can easily be replicated to deliver broadband across rural India. This can also be used to support the broadcasting business by leveraging EchoStar's strengths," said Pranav Roach, president of Hughes Network Systems India.
Hughes Network Systems India is a subsidiary of Hughes Network Systems LLC, the main operating subsidiary of Hughes Communications Inc. Hughes Communications was recently given the mandate to deliver satellite-based broadband connectivity to some 21 million homes in the US that were not being served by high-speed terrestrial broadband operators. The company believes similar opportunities exist in India too since bulk of the broadband connectivity offered by local terrestrial operators are not beyond the district headquarter level.
EchoStar has no immediate plans to enter the TV broadcasting space in India, but Hughes India executives say the dedicated satellite system can be used to deliver broadcasting-related applications for individuals and enterprise customers.
Once the project takes off, Hughes' three Indian subsidiaries - Hughes Communications India, Hughes Networks Systems India and Hughes Systique - are expected to develop applications and local content in the realm of e-education, e-governance, telemedia or banking, another company executive said.
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