Hughes Unit to Invest in 3 New Satellites : $300-Million Project Represents Major Growth in Operation
A Hughes Aircraft subsidiary that operates a satellite communications service said Thursday that it will invest $300 million in three new satellites, related ground equipment and launch services, representing a significant expansion of its network.
Hughes Communications Inc. said the new commercial satellites will be built by Hughes Aircraft in El Segundo and may be launched as early as 1988.
The rapidly growing subsidiary, which has annual revenue of about $100 million, already operates three commercial satellites and three satellites dedicated to military communications.
The Hughes plan follows approval by the Federal Communications Commission of a Hughes application to obtain three new orbital slots. The FCC action late last month approved a total of 25 new orbital slots for 10 satellite operators.
Ford Aerospace & Communications Corp. also announced Thursday that it plans to proceed with construction and launching in 1989 of two communications satellites that were approved by the FCC. Ford’s satellite manufacturing arm in Palo Alto will build the two satellites.
Larger, More Powerful
Ford said the satellites will be the largest and most powerful in operation, with twice the number of communications channels and more than twice the power than any domestic U.S. communications satellite now in service or authorized.
RCA was awarded one satellite slot, but it is not planning to launch its spacecraft until the 1990s, the firm said. RCA Astro Electronics in Princeton, N.J., will build the satellite.
The new licenses are the first FCC approvals for domestic communications satellites in nearly three years, a delay that has stemmed in part from the flood of applications before the commission.
At the same time, the industry has been plagued by pockets of excess satellite capacity in recent years.
Hughes Communications President Steven D. Dorfman said in an interview that the new satellite capacity represents a significant expansion for the company, both in terms of capacity and technology.
Two of the three Hughes satellites in the plan will be new-generation Ku-band models that will permit direct two-way communications with Earth stations that have only a 1-meter dish antenna--smaller than those now commonly used.
Hughes will either sell or lease capacity on the satellites and is targeting video communications for private networks as a principal market, Dorfman said.
So far, Hughes has no firm customers for the new satellites, but its existing three commercial satellites are being operated at 85% of capacity, Dorfman said.
Hughes’ current customers include MCI, HBO, Turner Broadcasting, Group W, IBM and the Disney Channel.
In addition to Hughes, Ford and RCA, the FCC granted satellite licenses to three other current satellite system operators and four new operators.
Martin Marietta, Comsat and Federal Express received permission to expand their networks.
