Hughes Network Systems, LLC is a wholly owned subsidiary of
EchoStar.[4] It is headquartered in
Germantown, Maryland and provides
satellite 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
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 at
Comsat Laboratories.[10] With $40,000 in startup capital,[10][11] the company operated from a garage in
Rockville, 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 by
Hughes Aircraft Corporation for $105 million and renamed Hughes Communications.[18]
In 2004,
News Corp acquired a controlling interest in Hughes through a $6.5 billion purchase intended primarily for its
DirecTV unit.[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 by
EchoStar for about $2 billion in 2011.[19][b]
Technology and services
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.[21] Hughes also markets its services to government, business, and military.[22]
Satellite systems
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[23] 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 signage and mobility, including airborne services.[24]
Through its Jupiter Aero System, an integrated system of airborne and ground equipment and software, Hughes provides broadband access to aircraft.[25] As of 2018, about 1,000 aircraft carry Hughes technology on board.[26]
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.[27]
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.[25][28][29][30][31]
Hughes has deployed more than 9 million VSAT terminals of all types in more than 100 countries, representing more than 50 percent market share.[32]
Satellite services
Hughes satellite backhaul of cellular service extends 4G/
LTE service to remote and rural areas around the world, specifically where conventional backhaul is difficult or costly due to geography and terrain.[33][34][35][36]
Hughes cellular backhaul applications include a 4G/LTE optimization capability that yields up to 60 percent bandwidth savings.[36]
In 1996, Hughes introduced a satellite Internet service for consumers and small businesses. The service was originally known as DirecPC[37] and was renamed Direcway in May 2002.[38] In 2012, with Hughes' first offering of broadband satellite Internet, it was renamed HughesNet.[39] In March 2017, Hughes became the first satellite-based
internet service provider to meet the
Federal Communications Commission's definition of "broadband" with HughesNet Gen5 after launching the EchoStar XVII and XIX high-throughput satellites.
In 2016, Hughes expanded HughesNet into
Brazil, marking its first international expansion of the service.[40] It expanded into
Colombia in September 2017,[41] into
Peru in October 2018,[42] into
Ecuador in December 2018,[43] and into
Mexico and
Chile in 2019.[44][45]
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.[46] HughesNet was named the Best Rural Internet Provider of 2022 and Best Satellite Internet Provider of 2022 by
U.S. News & World Report 360 Reviews.[47]
Hughes offers managed network services for distributed enterprise businesses and government organizations. Its HughesON
managed services include
SD-WAN,
Wi-Fi and location analytics and cloud-based digital signage and employee training.[49]