Hughes to Buy Satellites From Western Union

Hughes Aircraft announced Tuesday that it has closed a deal to buy four communications satellites from Western Union.

El Segundo-based Hughes is purchasing three satellites already in orbit and a fourth on the ground that is scheduled to be launched next year. The deal, first announced in February, does not include Western Union’s ground stations, which will be sold separately.

Hughes will save money by running the satellites from the facilities it uses to operate the three orbiting communications satellites it already owns, Chairman and Chief Executive Malcolm R. Currie said in a statement.

Both Western Union and Hughes refused to disclose what Hughes is paying for the satellites, but analysts estimated earlier that the price would be in the $100-million to $200-million range.

The satellites use the so-called “C-band,” a high-frequency wavelength used for transmitting television pictures, data and voice. C-band satellites are used primarily to distribute cable television and to relay syndicated programs and sports events from independent programmers to the networks.

Hughes’ acquisition is unlikely to push up prices for time on its satellites because its major rivals are General Electric and GTE, not Western Union, said Edward R. Cheramy, executive vice president of Culver City-based IDB Communications.

C-band satellite operators are already losing market share to operators of high-frequency Ku-band satellites, another factor that should keep Hughes from raising prices, said Elliot M. Gold, an Altadena satellite industry analyst and newsletter author. The networks already use Ku-band for much of their live news coverage.