Satellite News

Since Hughes’ Spaceway-3 communications satellite was placed into service in 2008, Hughes’ pretax earnings have grown by 45 percent and margins have improved. S&P said Hughes has seen growth in new consumer and small-business subscribers as well, and it no longer has to lease transponders from third-party satellite operators.

S&P said the increased earnings have helped Hughes lower its debt-to-equity ratio from 5.4 last June to an expected 4 by the end of 2010.

S&P said the ratings reflect an expectation for significant spending for Hughes’ new Jupiter satellite in the intermediate term and uncertain prospects for Hughes’ small and mid-size business broadband service, which is slower than most cable high-speed data services.

S&P said Hughes also could see significant competitive pressure from fellow satellite broadband operator ViaSat Inc., which owns WildBlue service.

Those concerns are tempered by the revenue stability from a backlog of three- to five-year contracts with several large customers, S&P said.

Hughes shares fell 59 cents, or more than 2 percent, to $25.17 in afternoon trading.

Hughes Network Systems, LLC (HUGHES) has been awarded a contract by the South Carolina Division of State Information Technology (DSIT) allowing the company to provide satellite broadband Internet service to South Carolina agencies and local governments. This Indefinite Delivery Indefinite Quantity (IDIQ) contract is for seven years.

Tony Bardo, assistant vice president for government solutions at Hughes, said, “Available nationwide, our affordable high-speed Internet service reaches across all areas, including the estimated 44 percent of South Carolina households that are unserved or underserved by terrestrial broadband providers. Under this contract, South Carolina public sector entities — even employees with home offices or those in remote locations — can now get high-speed Internet access.” Under the state-wide term contract (Number 5400000708-03 DSIT), Hughes may provide Lot 4 satellite Internet services to support high-speed small office and home office services.

Hughes Network Systems, LLC (HUGHES), the global leader in broadband satellite network solutions and services, informed that Tony Bardo, assistant vice president for government solutions at Hughes, will deliver a speach at IWCE 2010 on March 9 in Las Vegas. Mr. Bardo will serve with other satellite industry executives on a workshop panel moderated by Satellite Industry Association president, Patricia Cooper. The workshop, entitled “Satellites to the Rescue,” will provide attendees a comprehensive overview of satellite technology and how it enables mission-critical communications for the public safety community.

“Interoperable, reliable network communications are essential to support public sector missions,” informed Tony Bardo, assistant vice president for government solutions at Hughes. “Staying connected is particularly important for public safety professionals who stand on the front lines of the disasters that face our communities. I look forward to discussing how satellite broadband network solutions are so vital to supporting our public safety officials—as they support our communities—in times of crisis.”

Members of the media interested in scheduling a briefing with Mr. Bardo are invited to contact Mary Alice Johnson at (571) 323-2585, ext. 2140, or by e-mail maryalice@connellyworks.com.

About Hughes Network Systems

Hughes Network Systems, LLC (HUGHES) is the global leader in providing broadband satellite networks and services for large enterprises, governments, small businesses, and consumers. HughesNet® encompasses all broadband solutions and managed services from Hughes, bridging the best of satellite and terrestrial technologies. Its broadband satellite products are based on global standards approved by the TIA, ETSI and ITU standards organizations, including IPoS/DVB-S2, RSM-A and GMR-1. To date, Hughes has shipped more than 2.2 million systems to customers in over 100 countries.

Headquartered outside Washington, D.C., in Germantown, Maryland, USA, Hughes maintains sales and support offices worldwide. Hughes is a wholly owned subsidiary of Hughes Communications, Inc. ( HUGH).