Hughes Network Systems

Hughes Communications, Inc.
Subsidiary
IndustrySatellite networks and services
Founded1971; 48 years ago (1971) (Digital Communications Corp)
HeadquartersGermantown, Maryland, U.S.
Area served
Worldwide
Key people
Pradman Kaul
(Chairman, President and CEO)
ServicesGlobal communications
Revenue$1.39 billion (2016)[1]
Number of employees
4,000 (2016)[1]
ParentHughes.com

Hughes Communications is a wholly owned subsidiary of EchoStar.[2] It is headquartered in Germantown, Maryland and provides a high-speed satellite internet service,[3] HughesNet, which is the largest service of its kind with more than 1.3 million subscribers in the Americas.[4][5]

Corporate history

Hughes Communications was founded in 1971 under the name Digital Communication Corporation (DCC)[6] by seven engineers and a lawyer who all previously worked together at Comsat Laboratories.[7] With $40,000 in startup capital,[7][8] the company operated from a garage in Rockville, Maryland, designing circuit boards for telecom related products.[7][9]

By 1977, Digital Communications Corp. had 250 employees and $10.6 million in revenue.[10] In 1978, Digital Communications Corp. was acquired by Microwave Associates for an undisclosed sum,[10][a] becoming MA/COM-DCC and began developing satellite related products.[11] The company invented the very small aperture (VSAT) in 1985.[12] That year, the company sold its first VSAT network to Wal-Mart, which used the “technology to connect retail stores in rural areas.”[13] According to SatMagazine, “the global VSAT market is estimated to reach $10 billion by 2021.”[14]In 1987, MA/COM-DCC was acquired by Hughes Aircraft Corporation for $105 million and renamed Hughes Communications.[15]

In 2004, News Corp acquired a controlling interest in Hughes through a $6.5 billion purchase intended primarily for its DirecTV unit.[6] DirecTV also began selling off its ownership interests, culminating in a $100 million sale to a private equity firm.[6] As a result, Hughes became a wholly owned subsidiary of SkyTerra Communications Inc., which was controlled by the investment firm.[6] Hughes Communications was spun-off as an independent public company in 2007 and was acquired by EchoStar for about $2 billion in 2011.[16][b]

Other Languages
русский: HughesNet
Simple English: Hughes Network Systems
Türkçe: HughesNet