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P A G e<br />
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Winter 2007<br />
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Riding the Wave<br />
of <strong><strong>Hughes</strong>Net</strong><br />
<strong>Managed</strong> <strong>Network</strong><br />
<strong>Services</strong><br />
Executive Corner<br />
All <strong>Systems</strong> on<br />
Track<br />
<strong>Hughes</strong> Financial<br />
Corner<br />
Education: Going<br />
the Distance to<br />
the Amazon<br />
The Next Video<br />
Revolution<br />
Breaking News<br />
with BGAN<br />
Setting the Course<br />
for Maritime<br />
Broadband<br />
The Inside View<br />
Broadband Across<br />
America<br />
Executive Corner<br />
Cont.<br />
Riding the Wave<br />
of <strong><strong>Hughes</strong>Net</strong><br />
<strong>Managed</strong> <strong>Network</strong><br />
<strong>Services</strong> Cont.<br />
<strong>Hughes</strong><br />
QuickTakes<br />
Riding the Wave of<br />
<strong><strong>Hughes</strong>Net</strong> <strong>Managed</strong><br />
<strong>Network</strong> <strong>Services</strong><br />
The recent announcement of a multi-year contract with U.K. lottery operator<br />
Camelot Group plc has now positioned <strong>Hughes</strong> as a leading provider of<br />
managed services in Europe, expanding beyond its earlier major wins in<br />
North America.<br />
Under the Camelot contract, the continent-wide <strong><strong>Hughes</strong>Net</strong> broadband satellite<br />
service will be utilized to provide a comprehensive, highly reliable VPN solution<br />
connecting more than 27,000 lottery sites throughout the U.K. <strong>Hughes</strong> satellite<br />
terminals will interface with Camelot’s lottery equipment at each site, including<br />
point-of-sale digital media screens used to display a wide range of announcements,<br />
such as jackpots, local information, and missing-person alerts. The multi-year deal for<br />
<strong>Hughes</strong> includes provisioning of all networking equipment, installation, maintenance,<br />
and ongoing support.<br />
“The highly secure and reliable <strong><strong>Hughes</strong>Net</strong> VPN service was an important element in<br />
our bid for the new lottery license,” said Neil Kellar, Camelot’s IT Director. “<strong>Hughes</strong>’<br />
Details on Page 12<br />
continued on page 11<br />
A P u b l i c a t i o n o f<br />
Executive Corner<br />
2007 in Review:<br />
From NASDAQ to<br />
SPACEWAY<br />
By Pradman Kaul, Chairman<br />
and CEO, <strong>Hughes</strong><br />
It was a<br />
blustery day<br />
in New York’s<br />
Times Square,<br />
but January 18,<br />
2007 brought<br />
the <strong>Hughes</strong><br />
team a rare,<br />
warming experience—ringing<br />
the closing bell of the NASDAQ<br />
Stock Market. This event not only<br />
celebrated our company’s listing<br />
on the NASDAQ last year; it also<br />
served as a symbol of all we have<br />
accomplished and where we are<br />
headed.<br />
So how have we done? Since<br />
January, <strong>Hughes</strong> stock has<br />
increased nearly 35 percent, the<br />
company is poised to pass the<br />
$1 billion revenue milestone, and<br />
we’ve had positive results for seven<br />
consecutive financial quarters.<br />
By any financial measure—cash,<br />
profitability, revenue, growth—<br />
<strong>Hughes</strong> has met or exceeded all<br />
expectations.<br />
These kinds of results don’t happen<br />
by accident. We have an incredible<br />
team executing a proven business<br />
strategy—which is to leverage<br />
our rapidly growing broadband<br />
service business from a continuing<br />
strong base of technology and<br />
product innovations. And we’re<br />
not averse to selectively pursuing<br />
continued on page 10
All <strong>Systems</strong> on Track<br />
A SPACEWAY Update<br />
On August 14, 2007, the <strong>Hughes</strong>-owned SPACEWAY 3 satellite, the<br />
world’s first to employ onboard switching and routing capability,<br />
was successfully lifted into space by Arianespace from the European<br />
Teleport in Kourou, French Guiana. As of mid-December, Boeing has<br />
completed its placement into a geostationary orbit approximately<br />
22,300 miles above the equator at 95o West longitude, and it has been<br />
handed over to <strong>Hughes</strong> to conduct over-the-air testing in preparation<br />
for service delivery.<br />
All systems are on track for this next-generation, Ka-band broadband<br />
satellite system to begin delivering <strong><strong>Hughes</strong>Net</strong> broadband services to<br />
enterprise, consumer, and government customers throughout North<br />
America in the first quarter of 2008. Look for more information about<br />
SPACEWAY in the next issue of Channels in early 2008.<br />
<strong>Hughes</strong> Financial Corner<br />
Ticker: HUGH (NASDAQ)<br />
<strong>Hughes</strong> third-quarter 2007 results were<br />
announced on November 7, followed by an<br />
earnings conference call hosted on November 8.<br />
An audio replay of the earnings call is available<br />
on www.hughes.com. Select the link to Investor<br />
Relations.<br />
Snapshot of <strong>Hughes</strong> Third-Quarter<br />
2007 Results<br />
Revenues increased 11.5 percent over third<br />
quarter of 2006 to $234 million<br />
EBITDA increased by 6 percent to $35 million<br />
Net income increased to a strong<br />
$12.4 million<br />
Analyst Day<br />
On September 24, <strong>Hughes</strong> hosted an Analyst Day<br />
with 18 sell-side research analysts in attendance.<br />
The agenda included presentations by Pradman<br />
Kaul, Grant Barber, Adrian Morris, Mike Cook,<br />
Arunas Slekys, and Matthew Mohebbi, and<br />
Channels / Winter 2007 / www.hughes.com<br />
concluded with a tour of the network operations<br />
center (NOC) conducted by Dave Zatloukal.<br />
Media Interviews<br />
CNBC Interview with CEO Pradman Kaul<br />
In August, just after the launch of SPACEWAY,<br />
CNBC Squawk Box interviewed <strong>Hughes</strong> CEO<br />
Pradman Kaul to get his insight into the launch<br />
of the next-generation satellite and what it<br />
means to the future of satellite broadband.<br />
Wall Street Transcript Interview<br />
with CFO Grant Barber<br />
In September, the Wall Street Transcript<br />
interviewed <strong>Hughes</strong> CFO Grant Barber who<br />
shared his perspective on <strong>Hughes</strong>’ market<br />
leadership, growth, and strategy.<br />
To see interview videos, read transcripts, and<br />
get the most up-to-date news and financial<br />
information, visit www.hughes.com and select<br />
the link to Investor Relations.<br />
Published quarterly by <strong>Hughes</strong> Corporate<br />
Communications Department<br />
Eric Gann, Editor<br />
Channels may also be found online at<br />
www.hughes.com. Click on News &<br />
Events and select Channels Newsletter.<br />
Correspondence is invited and should be<br />
directed to:<br />
Arunas Slekys, Vice President,<br />
Corporate Marketing<br />
E-mail: aslekys@hns.com<br />
Telephone: 301-428-5502<br />
Fax: 301-601-4107<br />
<strong>Hughes</strong><br />
11717 Exploration Lane<br />
Germantown, MD 20876 USA<br />
About <strong>Hughes</strong><br />
<strong>Hughes</strong> <strong>Network</strong> <strong>Systems</strong>, LLC (HUGHES)<br />
is the global leader in providing broadband<br />
satellite networks and services for large<br />
enterprises, governments, small businesses,<br />
and consumers. <strong><strong>Hughes</strong>Net</strong> encompasses<br />
all broadband solutions and managed<br />
services from <strong>Hughes</strong>, bridging the best of<br />
satellite and terrestrial technologies. To<br />
date, <strong>Hughes</strong> has shipped more than<br />
1.2 million systems to customers in over<br />
100 countries. Its broadband satellite<br />
products are based on the IPoS (IP over<br />
Satellite) global standard, approved by the<br />
TIA, ETSI, and ITU standards organizations.<br />
Headquartered outside Washington, D.C.,<br />
in Germantown, Maryland, USA, <strong>Hughes</strong><br />
maintains sales and support offices<br />
worldwide. <strong>Hughes</strong> is a wholly owned<br />
subsidiary of <strong>Hughes</strong> Communications,<br />
Inc. (NASDAQ: HUGH). For additional<br />
information, please visit www.hughes.com.<br />
Special thanks to our contributors: Mary<br />
Belt, Kathy Bell, Judy Blake, Keary Cannon,<br />
Simon Cockayne, Deepak Dutt, Ann<br />
Edgeington, Eric Gann, Rafael Guimarães,<br />
Jaclyn Joines, Bill Lindsay, Doug Medina,<br />
Nancy Merette, Glenn Mossy, Amanda<br />
Palmer, Rob Shultz, Tim Tang, Arunas<br />
Slekys, and Mike Wade.<br />
©2007 <strong>Hughes</strong> <strong>Network</strong> <strong>Systems</strong>, LLC.<br />
All Rights Reserved. <strong>Hughes</strong>, <strong><strong>Hughes</strong>Net</strong>,<br />
AIReach, and SPACEWAY are trademarks<br />
of <strong>Hughes</strong> <strong>Network</strong> <strong>Systems</strong>, LLC.<br />
Wal-Mart is a registered trademark<br />
of Wal-Mart Stores, Inc.
EDUCATION:<br />
Going the Distance<br />
to the Amazon<br />
Students in the Brazilian State of Amazonas are now learning<br />
their lessons via educational programs that go the distance—by<br />
satellite. The Amazonas Board of Education is using <strong><strong>Hughes</strong>Net</strong><br />
broadband satellite service to deliver programs under the “On-Site<br />
Middle School with Technology Mediation” project to 10,000 students<br />
in rural communities. The program is designed to reach students who<br />
do not have access to a middle school, as well as those at schools that<br />
lack the space to accommodate them.<br />
At the Educational Media Center of Amazonas in Manaus, specially<br />
trained teachers deliver classes that are transmitted in real time to<br />
the <strong>Hughes</strong>-operated network operations center, and then broadcast<br />
to students in rural communities in 42 municipalities. Through the<br />
interactive IPTV system, students report to the teachers in Manaus,<br />
ask questions, and receive real-time feedback, assisted by 260 on-site<br />
teachers. Utilizing the <strong><strong>Hughes</strong>Net</strong> two-way satellite service, students<br />
and teachers interact as though they were physically present at the<br />
same location.<br />
Each classroom features<br />
a technology kit that<br />
includes a <strong>Hughes</strong> HN<br />
broadband satellite<br />
terminal, multimedia PC,<br />
LCD TV, laser printer, and<br />
special battery in case of<br />
power outages.<br />
According to Delio Morais, president of <strong>Hughes</strong> <strong>Network</strong> <strong>Systems</strong><br />
Americas, “Many of Brazil’s citizens live in remote areas with little<br />
opportunity for education. With this novel <strong><strong>Hughes</strong>Net</strong> distance<br />
education solution, we are able to overcome the obstacle of<br />
geography and deliver education to students wherever they live,<br />
even in remote parts of the Amazonas.”<br />
“Our greatest challenge was in accessing rural communities in the<br />
Amazonian jungle to install the satellite equipment,” added Morais.<br />
“Crews and installation materials traveled larger rivers by ship,<br />
and then transferred to smaller boats that were able to navigate<br />
the local rivers. But these challenges are far overshadowed by the<br />
importance of bringing education to the teenagers and adults in<br />
more than 200 communities in Amazonas who will benefit from<br />
this project.”<br />
Channels / Winter 2007 / www.hughes.com
The Next Video Revolution<br />
Advances in Consumer Television Create New Opportunities for the Enterprise<br />
In San Francisco, California, the CEO of a mid-sized company<br />
delivers a vision of the future. Employees in Kansas, Florida,<br />
Virginia, and Montreal watch the presentation in real time on<br />
high-definition TV monitors, PCs, and laptops, while some catch it<br />
on their cell phones. London and Munich employees will view a<br />
digitally recorded version when they start their workday tomorrow.<br />
The world of video is changing dramatically. No longer limited to the<br />
realm of the analog television set at home, video is available almost<br />
everywhere and on a myriad of devices—iPods, cell phones, digital<br />
video recorders (DVRs), PCs, and laptops. High-definition, DVDs, home<br />
Channels / Winter 2007 / www.hughes.com<br />
theater systems, digital surround sound—all aspects of digital audio/<br />
video technology—have dramatically raised the quality and sensory<br />
experience we now expect. And just as the black and white TVs of<br />
our parents gave way to color sets some 40 years ago, so will analog<br />
television broadcasting officially give way to the world of all-digital<br />
television broadcasting by February 2009.<br />
The same technology evolution that has powered the widespread<br />
adoption of digital video for the consumer is also driving dramatic<br />
changes in enterprise markets. Once solely the venue of large<br />
broadcast networks, private television broadcasting has now become<br />
available and affordable to any business, large or small. Furthermore,<br />
advances in video encoding and compression such as MPEG4, along<br />
with transmission/modulation advances such as DVB-S2, have<br />
significantly reduced bandwidth requirements by as much as<br />
60 percent.<br />
The availability of private television broadcasting solutions, coupled<br />
with today’s multimedia-savvy workforce, means that business IPTV is<br />
attracting considerable corporate interest as a tool to communicate<br />
with employees, improve training, satisfy compliance requirements,<br />
and reduce travel costs. Today’s knowledge-based era recognizes<br />
employee talent as a new basis by which companies compete. Better<br />
trained employees represent a strategic advantage, and distance<br />
education using the latest audio/video technologies and broadband
networks is the most costeffective<br />
means to achieve<br />
it. But many companies<br />
are neither equipped nor<br />
knowledgeable enough<br />
when it comes to the<br />
resources and experience<br />
required to operate such a<br />
private television network.<br />
<strong>Hughes</strong> is helping to meet<br />
that challenge. Drawing<br />
on decades of experience<br />
in delivering and managing<br />
broadband networks<br />
and services, <strong>Hughes</strong> has<br />
adapted the latest IPTV<br />
technologies, solutions,<br />
and best practices to<br />
enable businesses to gain the benefits of a private IP video network.<br />
<strong><strong>Hughes</strong>Net</strong> Business IPTV delivers multimedia communications in<br />
packages designed specifically for the enterprise. In addition to standalone<br />
video network offerings, <strong>Hughes</strong> provides cost-effective options<br />
for enhancing existing private data networks, such as frame relay and<br />
MPLS, to support video applications.<br />
Regardless of the number or types of applications supported,<br />
<strong><strong>Hughes</strong>Net</strong> offers enterprises the option to outsource the complexity<br />
of running a private television network wholly or in part. <strong><strong>Hughes</strong>Net</strong><br />
also provides ancillary services such as content usage reporting, which<br />
enables a business to demonstrate compliance with an audit trail<br />
proving that its workforce has taken a particular type of training to<br />
comply with corporate or legal regulations.<br />
<strong><strong>Hughes</strong>Net</strong> Business IPTV supports a range of uses such as live video<br />
streaming, video on demand, and content pre-population. Enterprise<br />
DVRs enable companies to record content for on-demand playback at<br />
a later time. Such convenient access to training material dramatically<br />
increases the penetration of mission-critical knowledge throughout<br />
an organization. Further improving the return on investment,<br />
<strong><strong>Hughes</strong>Net</strong> Business IPTV can also support access continuity require-<br />
ments and digital signage initiatives in addition to training and<br />
corporate communications. Scalable to large and small audiences,<br />
the <strong><strong>Hughes</strong>Net</strong> Business IPTV solution includes everything from<br />
design, integration, and installation to maintenance, operations,<br />
and customer support.<br />
“<strong><strong>Hughes</strong>Net</strong> Business IPTV is creating new excitement as a cost-effective<br />
vehicle for distance learning and corporate communications,”<br />
said Sampath Ramaswami, senior director of services development<br />
and marketing of <strong>Hughes</strong> North America. “Its performance and<br />
flexibility also make it an important part of a corporate strategy to<br />
maintain a well-trained workforce for true competitive advantage.”<br />
That means more employees in more companies will be watching<br />
more TV—as part of the job.<br />
Breaking News<br />
with BGAN<br />
A Channels Update<br />
Award-winning<br />
CNN Digital<br />
Newsgathering Project<br />
In the Summer 2007 issue, Channels published a story<br />
called “Breaking News with BGAN” about <strong>Hughes</strong> and<br />
Streambox technology that enables reporters to deliver<br />
streaming news as events unfold with battery-powered<br />
equipment that fits into a small backpack.<br />
Since that article was published,<br />
CNN was recognized by IBC, an<br />
organization dedicated to the<br />
creation, management, and<br />
delivery of content, for its<br />
groundbreaking use of such<br />
technology. CNN’s coverage of<br />
the Israeli-Hezbollah conflict in<br />
Breaking<br />
News with<br />
BGAN<br />
<strong>Hughes</strong> and Streambox Make<br />
Headlines with Real-Time<br />
Newsgathering Solution<br />
o matter how they get their news reports, today’s<br />
television and Internet audiences demand high-quality<br />
video, sharp images, and up-to-the-minute reporting. In Nthe<br />
past, this has posed unique challenges when covering<br />
emergencies or reporting from far-flung regions, including war zones<br />
such as Iraq and Afghanistan. Hauling, setting up, and then breaking<br />
down a considerable amount of equipment, often in difficult terrain<br />
and severe conditions, makes it particularly challenging to report from<br />
remote locations.<br />
But innovative technology is now enabling live news feeds from The latest generation <strong>Hughes</strong> 9250 terminal will introduce a whole new<br />
almost anywhere in the world. In 2005, the introduction of Inmarsat’s level of high-speed mobile communications with multi-user capability<br />
broadband global area network (BGAN) facilitated connectivity and rates of over 464 Kbps—while on the move.<br />
to more than 80 percent of the world’s population and land mass<br />
via powerful mobile satellite modems. And today, technology from “The key to a successful news organization is up-to-the-minute,<br />
<strong>Hughes</strong> and Streambox, means a single reporter can deliver streaming high-quality reporting, including images and video,” said Graham<br />
news as events unfold—with battery-powered equipment that fits into Avis, vice president of <strong>Hughes</strong> Mobile Satellite Terminal Group. “The<br />
a small backpack.<br />
<strong>Hughes</strong>/Streambox solution enables media companies to stream live,<br />
Channels / Summer 2007 / www.hughes.com<br />
The <strong>Hughes</strong>/Streambox solution, utilizing the global BGAN satellite<br />
high-quality feeds that tell,<br />
service, streamlines the process of live media feeds, even from the most<br />
and more importantly, show<br />
RepoRtiNg Live<br />
remote locations, without the need for a truck full of equipment. In<br />
news audiences what is<br />
Direct from Detroit’s Regatta<br />
a typical scenario, a major news organization equips a reporter with<br />
happening in the world—as<br />
Race on Lake Huron<br />
a video camera, a Streambox® portable encoder, and a <strong>Hughes</strong> BGAN<br />
it happens.”<br />
portable terminal.<br />
Broadcasting live from the middle of Lake<br />
Huron, WDIV Detroit, a Post-Newsweek “Because the Streambox<br />
The Streambox technology encodes and decodes video footage in<br />
affiliate, used the <strong>Hughes</strong> BGAN 9201/ and <strong>Hughes</strong> technologies<br />
real time. Using highly-efficient compression, Streambox equipment<br />
Streambox solution to cover the 2007 work together hand-in-<br />
provides superior video quality at low data rates over BGAN and other IP<br />
Bayview Mackinac Yacht Race, which glove, our customers are<br />
networks. Combining the Streambox equipment with the <strong>Hughes</strong> 9201<br />
attracted more than 250 competing yachts.<br />
able to streamline their<br />
BGAN terminal yields much higher bandwidth and transmission speeds<br />
mobile newsgathering<br />
than previous mobile satellite technology—up to 256 Kbps streaming<br />
process for real-time video<br />
video on a dedicated channel, similar to that of a videoconference. In<br />
transport from remote locations,” said Bob Hildeman, chairman and<br />
fact, when two <strong>Hughes</strong> 9201 terminals are bonded together and used<br />
CEO of Streambox. “The integrated <strong>Hughes</strong>/Streambox solution is a vital<br />
with Streambox encoders, a reporter can stream news reports at speeds<br />
tool for news organizations delivering breaking news over low data rate<br />
approaching 500 Kbps.<br />
networks.”<br />
In addition to its use in newsgathering applications, the <strong>Hughes</strong>/<br />
Streambox solution is also ideal for emergency response and assessment,<br />
military operations, and government and enterprise applications.<br />
In today’s world of ubiquitous information, <strong>Hughes</strong> and Streambox are<br />
helping reporters, camera crews, and media companies deliver highquality<br />
reporting, images, and video news from around the globe—<br />
whenever and wherever the stories unfold.<br />
July 2006 using a BGAN terminal from <strong>Hughes</strong> and technology<br />
from other partners, including Streambox and Inmarsat, created<br />
a breakthrough in newsgathering technology. Using small<br />
IP-based Internet connections coupled with satellite uplinks,<br />
hundreds of journalists were able to file on-scene live reports.<br />
CNN’s Digital Newsgathering (DNG) project is the first complete<br />
newsgathering tool that works over any existing IP<br />
infrastructure.<br />
CNN received the Innovation Award in the content creation<br />
category at the annual IBC Awards Ceremony in September<br />
in Amsterdam, as well as the coveted Judges’ Prize, for its<br />
innovative DNG. The IBC Innovation Awards celebrate excellence<br />
in the creation of technical and operational solutions, with<br />
entries submitted simultaneously by both technical suppliers<br />
and end users for solutions that demonstrate meeting<br />
real-world needs.<br />
Channels / Winter 2007 / www.hughes.com<br />
<strong>Hughes</strong> Takes<br />
‘Workplace Excellence’ and<br />
‘Wellness Trailblazer’ Awards<br />
or the seventh consecutive year,<br />
F<strong>Hughes</strong> has been awarded the<br />
‘Workplace Excellence’ Seal of Approval<br />
from the Alliance for Workplace<br />
Excellence. In addition, the company<br />
received the ‘Wellness Trailblazer’ award<br />
for the first time. Both awards are given<br />
to members of the Maryland business<br />
community dedicated to establishing a<br />
workplace culture that allows employees<br />
to achieve success at work, at home, and<br />
in the community. The awards were<br />
created to recognize visionary employers<br />
that are paving the way to a workplace<br />
where people can experience professional<br />
fulfillment and success, and personal<br />
wellness.<br />
“<strong>Hughes</strong> is honored to be the recipient<br />
of the Workplace Excellence Seal of<br />
Approval for the seventh year in a row<br />
and to be a first-time recipient of the<br />
Wellness Trailblazer award,” said Pradman<br />
Kaul, chairman and CEO of <strong>Hughes</strong>.<br />
“Achieving a healthy work-life balance is<br />
a cornerstone of the <strong>Hughes</strong> culture and<br />
a true win-win scenario. The company<br />
invests in the environment and in<br />
programs that enable employees to<br />
prioritize their time and energies, with<br />
access to all the facilities and resources<br />
they need to succeed at work, at home,<br />
and within the community.”<br />
Channels / Summer 2007 / www.hughes.com
M<br />
aritime—it’s an industry that evokes<br />
images of great ships traveling far<br />
out on the high seas for months<br />
at a time. But much of the maritime industry<br />
actually consists of merchant ships and private<br />
yachts that operate in regional waters. Millions<br />
of cargo ships, tankers, fishing boats, cruise<br />
ships, yachts, and patrol vessels travel closer<br />
to shore and mostly from port to port rather<br />
than across oceans. In the past, owners, guests,<br />
and crews onboard these vessels couldn’t<br />
access e-mail, browse the Internet, or conduct<br />
online business with consistent broadband<br />
connectivity in this wet, choppy environment.<br />
But now with the help of <strong>Hughes</strong> technology, a Cyprus-based<br />
telecommunications service provider is solving that challenge. Global<br />
Marine Communications (GMC) recently launched its new satellite<br />
Channels / Winter 2007 / www.hughes.com<br />
Setting the CourSe for<br />
service for the maritime industry, delivering<br />
affordable high-speed Internet access, Voice over<br />
IP (VoIP), and data communications services in<br />
the Mediterranean and North Seas, including<br />
Europe, the Middle East, and northern Africa.<br />
In addition, GMC roaming service plans are<br />
available that extend coverage to North America,<br />
the Caribbean Sea, and Australia.<br />
The GMC communications solution combines<br />
the <strong>Hughes</strong> HN series satellite broadband system<br />
and <strong><strong>Hughes</strong>Net</strong> broadband satellite service<br />
over Ku-band satellites. Fully compliant with<br />
the IPoS/DVB-S2 satellite standard, including<br />
Adaptive Coding & Modulation (ACM), this solution enables high<br />
throughput using Ku-band antenna sizes smaller than previously<br />
possible on vessels. The compact, gyroscopic stabilized satellite antenna<br />
was specifically engineered for the harsh marine environment by
Orbit Marine, a leading designer and manufacturer of marine-stabilized<br />
satellite communications antennas. GMC also offers technical support,<br />
design, installation, and integration services to its marine customers.<br />
GMC’s new service offers cost-effective voice and data communications<br />
in several convenient monthly service packages for different speed and<br />
usage requirements. When traveling across oceans, vessels can rely on<br />
a variety of Inmarsat services and switch to the GMC service in regional<br />
waters. In the future, GMC plans to add network operations centers<br />
to expand availability in new service regions and to collaborate with<br />
operators in South America and Asia to provide global coverage.<br />
“Onboard Internet is a necessity for ship owners today,” said Keary<br />
Cannon, vice president of marketing and sales for <strong>Hughes</strong> Europe. “It<br />
is much easier to lease and get crews for vessels that have always-on<br />
broadband access, rather than a system with per-minute charges and<br />
low data rates. Not only does a <strong>Hughes</strong> satellite terminal with the Orbit<br />
stabilized antenna provide affordable broadband access at download<br />
speeds of 2 Mbps or higher, but GMC can also offer a variety of dedicated<br />
or shared bandwidth options using <strong><strong>Hughes</strong>Net</strong> Ku-band coverage.”<br />
“This service meets an exploding demand for consistent coverage in<br />
coastal areas,” said Alex Ekonomou, technical director, Global Marine<br />
Communications. “In addition to the wealth of satellite communications<br />
expertise, equipment, and services that <strong>Hughes</strong> brings, the Orbit antenna<br />
is a marvelous work of engineering that enables a highly reliable service<br />
in this harsh, wet, salty, and mobile environment.”<br />
The new GMC service is also ideal for the oil and gas sector, which is<br />
increasingly using broadband satellite technology for both day-to-day<br />
operations and for reliable backup services on offshore platforms.<br />
As the maritime industry continues to grow, the people who travel,<br />
work, and live on board can remain confident that their communications<br />
will stay anchored via satellite, even while they move freely across the<br />
seven seas.<br />
Channels / Winter 2007 / www.hughes.com
Channels / Winter 2007 / www.hughes.com<br />
The<br />
Inside<br />
View<br />
<strong>Network</strong> managers have a tough<br />
job. These busy IT professionals<br />
are responsible for keeping<br />
track of everything that goes<br />
on in their networks around the clock—and<br />
sometimes around the world. That’s why the<br />
<strong><strong>Hughes</strong>Net</strong> Customer Gateway is good news<br />
for enterprises.<br />
Providing a single interface for monitoring<br />
and managing an organization’s satellite<br />
and landline broadband technology is the<br />
critical role of the <strong><strong>Hughes</strong>Net</strong> Customer<br />
Gateway. Enterprise customers utilize this<br />
important tool to keep track of network<br />
activity and reduce the time and challenges<br />
associated with monitoring multiple<br />
systems. Through a secure Web login via<br />
the <strong>Network</strong> Management Portal, enterprise<br />
help desks and network administrators can<br />
access an immediate snapshot of real-time<br />
network status and view applications<br />
and performance at any site. Site-bysite<br />
analysis, trend data, and extensive<br />
troubleshooting functionality also help<br />
network administrators understand and<br />
improve application performance.<br />
In Johnson City, Tennessee, Alliance Data,<br />
a leading provider of marketing, loyalty,<br />
and transaction services in North America,<br />
tracks nearly 5,000 <strong>Hughes</strong> VSATs that serve<br />
over 120 million consumer relationships.<br />
“The <strong><strong>Hughes</strong>Net</strong> Customer Gateway is a<br />
valuable tool in running our business,” said<br />
Chris Adcock, operations technical specialist,<br />
Alliance Data. “Alliance processes billions of<br />
transactions each year, and access to critical<br />
information enables us to understand exactly<br />
what’s going on in the network.”
“The <strong><strong>Hughes</strong>Net</strong> Customer<br />
Gateway helps support our<br />
one call-resolution policy for<br />
customers. It’s a tremendous<br />
timesaver and productivity tool.”<br />
– Chris Adcock, Alliance Data<br />
Here is a look at some of the Customer<br />
Gateway features that make the jobs of<br />
enterprise IT professionals and <strong><strong>Hughes</strong>Net</strong><br />
resellers easier.<br />
Installation<br />
When customers order equipment from<br />
<strong>Hughes</strong>, they can monitor every step of the<br />
process through the Customer Gateway—<br />
from initial contact to site commissioning.<br />
“A color-coded calendar tool helps us<br />
easily track installation progress, drill down<br />
to detailed information, and keep sites<br />
informed,” said Adcock. “This is especially<br />
important when we’re deploying a large<br />
number of sites for our customers.”<br />
Documents and Technical Information<br />
Documents and Technical Information<br />
provide standard monthly reports, including<br />
availability and outage information for<br />
network, hub, and remote sites. A documentation<br />
library furnishes comprehensive<br />
information such as manuals and a knowledge<br />
base that provides troubleshooting<br />
steps. According to Adcock, “Reports give<br />
us important data on network availability<br />
and utilization, and also help us ensure that<br />
we’re meeting the service level agreements<br />
that we’ve set for our customers. And the<br />
technical library is an invaluable resource for<br />
developing internal procedures.”<br />
Trouble Tickets<br />
<strong>Hughes</strong>-generated trouble tickets on the<br />
Customer Gateway alert customers of network<br />
events that impact their sites. Likewise,<br />
enterprise help desks use the Customer<br />
Gateway to generate site-related tickets.<br />
<strong>Network</strong> Management Portal<br />
The <strong>Network</strong> Management Portal enables<br />
enterprises to look beyond sites to the<br />
network as a whole. Fault Management<br />
provides a view of attributes that could<br />
impact a site and its performance, enabling<br />
early detection of problems and faster<br />
resolution of network issues. Pie charts, bar<br />
charts, and maps display information such as<br />
network availability, site problems, weatherrelated<br />
events, and ongoing issues.<br />
The Performance Management function of<br />
the portal provides deep network visibility<br />
with historical and real-time reports at site,<br />
network, and application levels. Enterprises<br />
can view usage information such as top<br />
applications, top hosts, and related statistics<br />
to gain better insight into the network and<br />
the ability to conduct analysis to improve<br />
performance.<br />
Managing the <strong>Network</strong> Environment<br />
“Because all the information we need is<br />
right there at our fingertips, the <strong><strong>Hughes</strong>Net</strong><br />
Customer Gateway helps support our one<br />
call-resolution policy for customers,” added<br />
Adcock. “It’s a tremendous timesaver and<br />
productivity tool for us.”<br />
“The <strong><strong>Hughes</strong>Net</strong> Customer Gateway gives<br />
enterprises the productivity, planning<br />
tools, and information they need to better<br />
manage their network environments,” said<br />
Douglas Medina, senior director of enterprise<br />
marketing North America, <strong>Hughes</strong>. “This<br />
helps our customers achieve greater uptime,<br />
optimal application performance, and faster<br />
recovery after outages—for a true competitive<br />
advantage in the marketplace.”<br />
Broadband Across America<br />
As Close as Your Local<br />
It’s clear that broadband Internet access is changing the way many people work, live, and<br />
play. But millions of American households and small businesses aren’t served by terrestrial<br />
broadband cable or DSL, a divide that is fueling the rapid growth of high-speed Internet<br />
access by satellite. And now, getting the benefits of broadband can be as easy as shopping<br />
at your local Wal-Mart.<br />
Consumers and small businesses across North America can now purchase <strong><strong>Hughes</strong>Net</strong>, the<br />
leading satellite broadband Internet access service, at 2,800 Wal-Mart stores across the U.S.,<br />
with the convenience of signing up when they shop. <strong><strong>Hughes</strong>Net</strong> is available to everyone<br />
in the continental U.S. with a view of the southern sky, and offering it at Wal-Mart stores<br />
where millions of people shop makes broadband more accessible in more regions of the<br />
country than ever before.<br />
“Wal-Mart is perhaps the only retail store in the country that reaches as many people as<br />
<strong><strong>Hughes</strong>Net</strong>,” said Mike Cook, senior vice president, North America Division, <strong>Hughes</strong>. “This<br />
relationship is a powerful way to make broadband a reality for the millions of Americans<br />
and small business owners who cannot get high-speed Internet access from cable or<br />
DSL providers.”<br />
Channels / Winter 2007 / www.hughes.com
Executive Corner<br />
continued from page 1<br />
opportunities at the edges of our<br />
core business that can help us<br />
grow faster, such as the mobile<br />
satellite development projects we<br />
won this year from ICO, MSV and<br />
TerreStar <strong>Network</strong>s. Everyone on<br />
the team is also working hard at<br />
maintaining effective cost controls<br />
that enable us to compete in<br />
a tough market, while making<br />
the margins we need for solid<br />
profitability.<br />
Out of This World<br />
Certainly the crowning achievement<br />
of 2007 was the successful<br />
launch of SPACEWAY 3 in August<br />
from Kourou, French Guiana.<br />
SPACEWAY, the world’s first satellite<br />
to employ onboard switching<br />
and routing, is now in its orbital<br />
position, and after payload and<br />
functionality testing, we expect<br />
to put it into commercial service<br />
offering <strong><strong>Hughes</strong>Net</strong> broadband<br />
services in North America during<br />
the first quarter of 2008.<br />
It’s a significant turning point for<br />
the entire <strong>Hughes</strong> community—<br />
shareholders, customers, and<br />
employees alike—because for the<br />
first time we will operate our<br />
own satellite. From a personal<br />
point of view, it was a crusade:<br />
we had to bring this technology<br />
to market. So much was riding on<br />
it—our reputations, our aspirations,<br />
and not least the nearly $2<br />
billion invested since 1998 to<br />
develop it. Admittedly, there were<br />
some temporary setbacks when<br />
<strong>Hughes</strong> went through changes in<br />
ownership. But all the anxieties<br />
disappeared in the roar of the<br />
rocket as SPACEWAY blasted off—<br />
it was an exhilarating experience.<br />
From Connectivity to <strong>Services</strong><br />
So how will we move forward? It’s<br />
my firm belief that we can shape<br />
the future of new broadband<br />
services and thereby expand our<br />
addressable market. Connectivity<br />
alone is becoming a commodity<br />
and the future lies in offering<br />
people and organizations services<br />
and applications they don’t have<br />
today. We will seek out those<br />
10 Channels / Winter 2007 / www.hughes.com<br />
new applications, expand our<br />
traditional markets, and probe<br />
new opportunities. Telematics, for<br />
example, is a business we were<br />
not in two years ago. When the<br />
opportunity arose to enter that<br />
market, we jumped in and have<br />
conducted significant technology<br />
and engineering work. Other<br />
examples we can build on are<br />
several major managed services<br />
contracts we won this year, which<br />
include multi-casting of digital<br />
video to point-of-sale locations,<br />
a key element of many new<br />
applications.<br />
“From a personal point<br />
of view, SPACEWAY<br />
was a crusade. We<br />
had to bring this<br />
technology to market.”<br />
– Pradman Kaul,<br />
Chairman and CEO, <strong>Hughes</strong><br />
Closing the Digital Divide<br />
Broadband is growing so fast<br />
globally that we sometimes forget<br />
about the billions of people in<br />
both developed and developing<br />
nations who can’t get it. We’re<br />
already working on several<br />
exciting initiatives to provide<br />
satellite broadband connectivity<br />
to underserved areas around<br />
the world, including regions in<br />
India, Brazil, China, Russia, and<br />
the United States. In India, for<br />
example, we launched a novel<br />
initiative to implement Internet<br />
kiosks, providing <strong><strong>Hughes</strong>Net</strong><br />
e-services in rural towns and<br />
villages.<br />
A key application in closing the<br />
digital divide is e-learning, which<br />
brings courses via broadband<br />
from institutions and professors<br />
to areas that would not otherwise<br />
have access to such resources.<br />
Telemedicine is also an important<br />
satellite broadband-based initiative<br />
that gives people in rural areas<br />
access to the kind of medical<br />
expertise that is available only<br />
in urban areas. And satellite<br />
broadband also enables<br />
e-governance services so that<br />
people in remote areas can, for<br />
example, get a birth certificate,<br />
apply for a driver’s license, or<br />
pay taxes online.<br />
The Formula for Success<br />
I see a very bright future for<br />
<strong>Hughes</strong>. Our continuing challenge<br />
going forward will be to maintain<br />
our focus and leadership in our<br />
core business, while still probing<br />
opportunities on the edges and<br />
always seeking to create new<br />
markets. We reached some<br />
significant milestones this year<br />
and should never forget what<br />
brought us here—a remarkable<br />
group of competent people who<br />
work hard, who like what they<br />
do, who like each other, and<br />
who believe in each other. That<br />
is the formula for success, and I<br />
remember that every day.
Riding the Wave of <strong><strong>Hughes</strong>Net</strong><br />
<strong>Managed</strong> <strong>Network</strong> <strong>Services</strong><br />
continued from page 1<br />
experience deploying very large<br />
networks, including more than<br />
70,000 network nodes for lottery<br />
terminals worldwide, was a key<br />
factor in our decision.”<br />
<strong>Hughes</strong> has gained that experience providing broadband satellite<br />
networks and services to GTECH Corporation, the world’s largest<br />
lottery and gaming solutions company. (See related story in<br />
Channels, Spring 2007). Today, the GTECH network connects<br />
more than 70,000 lottery sites in the U.S., using 10 network hubs<br />
and all the necessary operations equipment to deliver highquality,<br />
end-to-end lottery services to its customers.<br />
But managed services go far beyond the lottery business.<br />
Industry leaders in the retail, restaurant, entertainment, and<br />
petroleum sectors rely on <strong><strong>Hughes</strong>Net</strong> <strong>Managed</strong> <strong>Services</strong> for<br />
their enterprise networks. The Yankee Group recognized this<br />
leadership in a 2006 report, documenting more than 110,000<br />
sites managed by <strong>Hughes</strong> in the U.S. alone.<br />
For example, BP Products North America employs the <strong><strong>Hughes</strong>Net</strong><br />
Optimized VPN service to connect its 14,000 retail stations<br />
across the U.S. (See related story in Channels Summer 2006.)<br />
In Europe, BP uses <strong><strong>Hughes</strong>Net</strong> Optimized VPN to connect over<br />
4,000 sites throughout the U.K., Germany, Luxembourg, and<br />
Austria. As a fully managed broadband offering, <strong><strong>Hughes</strong>Net</strong><br />
Optimized VPN creates a seamless network service by using the<br />
most efficient and cost-effective technology available at each<br />
site—whether satellite or landline. The result is a uniform and<br />
cost-efficient broadband service at each station, and includes<br />
all operations, network management, and proactive monitoring.<br />
Both Camelot and BP are prime examples of a trend in which<br />
today’s enterprises are moving away from the direct operation<br />
and maintenance of their networks. Instead they’re relying on a<br />
single proven provider to manage all their network needs, freeing<br />
staff to focus on running their core businesses and on building<br />
growth and revenue, confident that network management is in<br />
the hands of an experienced service provider.<br />
“We are proud to have been selected by Camelot to provide<br />
the broadband network solution and services for this nextgeneration<br />
lottery system in the U.K.,” said Pradman Kaul,<br />
chairman and CEO, <strong>Hughes</strong>. “In today’s competitive business<br />
environment, enterprises need expert partners to help them meet<br />
their business goals. With our success providing networking<br />
solutions and services on two continents, <strong>Hughes</strong> is now poised<br />
to expand <strong><strong>Hughes</strong>Net</strong> <strong>Managed</strong> <strong>Services</strong> globally.”<br />
1 Yankee Group Decision/Note SM Market Analysis, February 24, 2006,<br />
“How to Succeed in the $25 Billion <strong>Managed</strong> Service Market,” Anton Denissov.<br />
The Many Flavors of<br />
The <strong><strong>Hughes</strong>Net</strong> portfolio of managed services combines<br />
the best of landline and satellite broadband technologies,<br />
state-of-the-art management systems, and a dedicated<br />
program management team to deliver turnkey solutions to<br />
businesses in all industries.<br />
<strong>Network</strong> <strong>Services</strong> deliver enterprise-grade VPN solutions that<br />
provide superior network reliability, affordable broadband<br />
connectivity, and an integrated managed network.<br />
Digital Media <strong>Services</strong> deliver high-impact corporate<br />
communications to multiple locations and high-quality<br />
media content to customers at the point of purchase.<br />
Business Continuity solutions provide cost-effective backup<br />
connectivity via broadband satellite to ensure that critical<br />
business applications are always up and running.<br />
Professional <strong>Services</strong> offer enterprises network consulting<br />
services tailored to their individual business needs.<br />
Why do Companies Select<br />
When enterprises seek a managed services provider,<br />
they look for technology and market leadership,<br />
deep experience, and strong customer support. That’s<br />
why they turn to <strong>Hughes</strong>.<br />
A Snapshot of <strong>Hughes</strong><br />
The worldwide market leader in broadband satellite<br />
services and technology<br />
A single provider for both satellite and terrestrial<br />
networks<br />
Recognized by the Yankee Group as a top-tier managed<br />
network provider<br />
Global service delivery with sales offices and<br />
operations worldwide<br />
Channels / Winter 2007 / www.hughes.com<br />
11
n Czech Provider GiTy Selects Expandable<br />
HN System to Connect Public Libraries<br />
GiTy, the Czech Republic’s leading<br />
telecommunications service provider, selected<br />
<strong>Hughes</strong>’ latest generation HN broadband satellite<br />
system to support a network that provides broadband<br />
Internet/intranet access for public libraries in the<br />
Czech Republic. The system comprises an HN NOC cx<br />
network operations center and over 500 HN7000S<br />
broadband satellite terminals. The NOC cx is designed<br />
for service providers and enterprises with small initial<br />
network requirements, yet is readily expandable as<br />
service demand justifies. A highly efficient<br />
architecture incorporates numerous advanced<br />
features, including guaranteed quality of service<br />
levels.<br />
n Broadband Critical to Small Business Success<br />
In a recent survey conducted by <strong>Hughes</strong>, rural small<br />
business owners said that broadband access is<br />
“extremely important” to their business success. The<br />
majority of small business owners and managers<br />
surveyed operate in rural areas—those beyond the<br />
reach of DSL and cable broadband service. Prior<br />
to the availability of satellite broadband, these<br />
business people were reliant upon dial-up Internet<br />
connections, now considered too slow and unreliable<br />
for business use.<br />
The survey of nearly 600 self-identified small business<br />
owners and managers indicated that customer<br />
communications, research, and order processing<br />
were primary needs addressed by broadband services.<br />
Nearly 100 percent of those surveyed said that they<br />
use the Internet for business purposes regularly. In<br />
addition to using satellite broadband services for<br />
their primary needs, small business respondents also<br />
use the Internet to maintain or manage a company<br />
Website (32%); download files (86%); manage<br />
inventory (12%); and use instant messaging (24%).<br />
11717 Exploration Lane<br />
Germantown, MD 20876 USA<br />
n World’s Most Efficient Satellite Standard in Brazil<br />
<strong>Hughes</strong> Brazil has implemented the region’s first<br />
DVB-S2/IPoS satellite hub, giving customers higher<br />
system availability and greater throughput as a<br />
result of the enhanced system capabilities derived<br />
from the DVB-S2/IPoS standard, including ACM<br />
(adaptive coding and modulation). The new <strong>Hughes</strong><br />
HN System optimizes link performance, even in<br />
networks with geographically diverse locations and<br />
in high rain areas, by adjusting error-correcting codes<br />
and modulation dynamically based on signal quality<br />
feedback from HN remote terminals. The greatly<br />
improved Low Density Parity Check (LDPC) error-<br />
correcting codes, combined with the adaptability<br />
features, make the <strong>Hughes</strong> solution the most<br />
efficient DVB-S2/IPoS platform on the market today.<br />
<strong><strong>Hughes</strong>Net</strong> customers are currently being activated<br />
on this hub, and it is estimated that by year end<br />
approximately 1,500 customer sites will be receiving<br />
<strong><strong>Hughes</strong>Net</strong> service through the new DVB-S2/IPoS<br />
with ACM hub.<br />
n New <strong>Hughes</strong> Operations Center in Brazil<br />
<strong>Hughes</strong> Brazil has completed the migration of<br />
its network operations center (NOC) from Cotia<br />
to Barueri in the state of São Paulo, enabling<br />
expansion of satellite capacity and services<br />
throughout Brazil and South America. The NOC is<br />
now located at Terremark Brazil, one of the largest<br />
IP Traffic Exchange Peering Points in Latin America.<br />
The Terremark facility provides a more suitable<br />
infrastructure to meet <strong>Hughes</strong>’ increasing traffic<br />
needs, as well as the advantage of being connected<br />
to the backbones of all major operators in Brazil and<br />
the ability to support future expansion in a highly<br />
secure environment.<br />
“We are confident that combining neutrality,<br />
reliability, mass connectivity, and the operations of<br />
the most important Multilateral IP Exchange Point<br />
in the region will provide increased synergy between<br />
<strong>Hughes</strong> and our customers, a strategy that is in<br />
line with Terremark’s marketplace business model<br />
throughout the world,” said Hugo Zanon, managing<br />
director, Terremark Brazil.<br />
n <strong>Hughes</strong> On The Move—Two <strong>Hughes</strong> Teams<br />
Compete in U.S. Army Ten-Miler<br />
Congratulations to the 15 runners from <strong>Hughes</strong> who<br />
competed in the 23rd Annual Army Ten-Miler on<br />
October 7, 2007 in Washington, D.C. Sponsored by<br />
the Association of the United States Army (AUSA),<br />
the Army Ten-Miler is America’s largest ten-mile<br />
road race, drawing civilian and military participants<br />
from across the country, as well as competitors from<br />
around the world. The event began and ended at the<br />
Pentagon and followed a ten-mile course through<br />
scenic downtown Washington within view of historic<br />
monuments, memorials, and buildings. Kudos to<br />
<strong>Hughes</strong> Running Club Team 1 from the Corporate<br />
Division who ranked 11th out of 76 competing<br />
teams, and <strong>Hughes</strong> Running Club Team 2 in the<br />
All Comers Division who took the 15th spot out<br />
of a roster of 31 teams.<br />
n Residential “Shownet” Internet <strong>Services</strong><br />
in the Arabian Gulf<br />
Kuwait-based Gulfsat Communications Company,<br />
a leading satellite service and solutions provider in<br />
the Middle East and North Africa, has purchased<br />
an HN System network operations center (NOC) to<br />
begin providing a new broadband residential Internet<br />
access service called “Shownet Two-Way Service”<br />
in the Gulf region in the 4th quarter of 2007.<br />
“We are very pleased to be using the <strong>Hughes</strong><br />
broadband satellite platform to provide our new,<br />
two-way residential Internet service and to have the<br />
first DVB-S2 NOC serving the residential market in<br />
the Gulf region,” said Mustafa Murad, chief operating<br />
officer at Gulfsat. “The <strong>Hughes</strong> implementation<br />
of DVB-S2 allows us to provide a very efficient<br />
and cost-effective service to our customers with<br />
improved satellite Internet browsing and download<br />
performance at a level that traditional landline<br />
service cannot match.”<br />
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