Perhaps Aeroflex will get a piece of this....
Hughes Invests $1.4 Bln In Satellite
EL SEGUNDO, Calif. (Reuters) - Hughes Electronics Corp., a unit of General Motors Corp. (NYSE:GM - news), said Wednesday it would invest $1.4 billion in the first system of its Spaceway global broadband satellite.
Spaceway will provide a vehicle for high-speed communications for data, video, voice and traffic. The system will provide ''bandwidth-on-demand,'' meaning that customers will pay only for the amount of network space they actually use.
The first system is scheduled to begin operation in North America in 2002. It will ultimately allow applications such as video conferencing, distance learning and Internet services faster and more cheaply than with current land-based systems, Hughes said.
However, the satellite system will ''seamlessly'' integrate with such systems, the satellite maker added.
Industry estimates project the demand for broadband data to reach $50 billion in 2005 in the U.S. market, Hughes said.
Spaceway's advancements in the ability to reuse frequency will translate into an eight-fold increase in revenue-generating potential at the wholesale level, the company said.
The system will use on-board digital processing, packet switching and spot beam technology to offer connectivity throughout the service area regardless of location that, for example, will allow customers to communicate directly via satellite with others without having to go through a hub.
Satellite communications provider PanAmSat Corp., which is 81 percent-owned by Hughes, will operate the telemetry, tracking and control center for the satellites in orbit. Hughes' DirecTV satellite television unit will market several of the data services offered by Spaceway to its subscribers.
Hughes plans to work with global strategic partners to roll out additional systems with similar capabilities worldwide ''as the markets develop.''
Hughes shares closed up 31 cents at $49.06 Tuesday on the New York Stock Exchange.
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