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Hughes forms Chinese JV to tap state’s rural broadband push

Connectivity BusinessbyConnectivity Business
September 1, 2010
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Hughes Network Systems has continued its push into Asia with the formation of a Chinese subsidiary. HughesNet China Co.
Ltd is a joint venture between HNS and China UnifiedNet and will be headquartered in Beijing.
The new venture expects to commence…

Hughes Network Systems has continued its push into Asia with the formation of a Chinese subsidiary. HughesNet China Co.

Ltd is a joint venture between HNS and China UnifiedNet and will be headquartered in Beijing.

The new venture expects to commence commercial services in the fourth quarter of this year and will offer managed broadband network services to telecom carriers and major enterprise customers. HNS added that the new business will also seek to support the Chinese government’s rural development initiatives by offering satellite broadband in unserved areas.

Ivan Chow, chief operating officer of China UnifiedNet and a director of HughesNet China, stated, “Hughes China has entered into framework agreements with two of the leading telecom carriers to provide managed services to their major business and government customers using both satellite and terrestrial technologies, and to provide services to meet the needs of rural education and emergency communications in the western provinces of China.” This strategy of tapping the Chinese state’s desire to expand broadband into rural areas mirrors the company’s establishment of an Australian subsidiary back in May 2010. That move has given HNS the opportunity to play a key role in the satellite segment of the country’s National Broadband Network which requires the construction of at least two Ka-band satellites to serve Australian rural communities.

Tags: Hughes Network Systems
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