About Hughes Communications, Inc.

EchoStar is thinking inside the box. The company provides TV set-top boxes (STBs) primarily to former parent DISH Network, as well as similar satellite service providers. Its STB portfolio includes HD and standard definition devices that incorporate digital video recorders. Other products include satellite dishes, remote controls, and cable receivers. EchoStar also owns Sling Media, which sells STBs that enable customers to view their home TV signal on Internet-connected devices. Subsidiary Hughes Communications provides Internet service to consumers in North America and network services and systems to businesses worldwide. The US accounts for most of sales.

Operations

The company's EchoStar Technologies segment accounts for 41% of sales and includes its STB and digital broadcasting operations. The Hughes broadband Internet segment, which became the company's largest business in 2015, contributes about 43% of sales, and EchoStar Satellite Services (satellite capacity leasing, primarily to DISH Network) generates about 16%. The Hughes segment had more than a million broadband subscribers.

Geographic Reach

EchoStar has operations across the US and in Brazil, Germany, India, The Netherlands, the UK, Ireland, and Ukraine. Its largest market is the US, which accounts for about 85% of sales. The company also has a presence in Italy, Mexico, and United Arab Emirates.

Sales and Marketing

The primary customer of EchoStar Technologies segment is DISH Network. DISH Network ccounted for 88% of the EchoStar Technologies segment's revenue in 2015. DISH Network accounted for 8%, of total Hughes segment revenue in 2015. The company provides satellite capacity on satellite fleet primarily to DISH Network, Dish Mexico, U.S. government service providers, state agencies, Internet service providers, broadcast news organizations, programmers and private enterprise customers.

DISH Network is far and away EchoStar's largest customer, accounting for about 54% of sales overall and 86% of the EchoStar Satellite Services segment's sale and 88% of the EchoStar Technologies segment's sales.

Financial Performance

EchoStar's revenue dropped 9% to $3.14 billion in 2015, compared to $3.4 billion in 2014. Much of the blame was cast on the EchoStar Technologies segment. Its revenue fell 21% because of a decrease in equipment revenue from DISH Network and in in service revenue.

Net income was flat from 2014 to 2015 at about $153.3 million

The company's cash flow from operations was $776.4 million in 2015, a drop of 8% compared to 2014.

Strategy

EchoStar sees the still-growing demand for broadband services as a rich source of growth opportunities. Besides looking for additional customers for its STBs, the company's strategy includes capitalizing on the proliferation of advanced technologies in its boxes that could spark replacement cycles. EchoStar also has dormant satellite and fiber capacity that it hopes will tempt more customers, such as vendors of pay-TV, satellite-based broadband service, corporate communications, and government services. Bundling services and reaching new markets are high on its list of priorities. Customers outside the US are also particularly attractive. EchoStar considers the more modest cable and telecom infrastructures in many global markets to be particularly suited for satellite-delivered services that could be deployed more quickly.

The company has reached agreements to extend its technologies into new uses and geographies. It provide services to telecommunications companies in Brazil and Ireland. In the Middle East, Hughes Networks Systems' technology will monitor conditions at oil wellheads across hundreds of miles in the desert in a pact with a large petroleum company.

In 2015 EchoStar reached satellite services agreements with Telesat to provide fixed broadband service into South America using the Ka-band capacity on a satellite. They expect the satellite to be launched in 2018 to deliver consumer satellite broadband services into South America as well as create a platform to potentially allow for further development of our business in South America.

Mergers and Acquisitions

EchoStar was acquisition free in 2014 and 2015. In late 2013 it acquired Solaris Mobile, a company based in Ireland and licensed by the European Union, to provide mobile satellite services and complementary ground component services covering the entire European Union. The deal allowed EchoStar to commercialize the license through its satellite and terrestrial technology capabilities and fortified its reach in Europe.

 

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Hughes Communications, Inc.

11717 Exploration Ln
Germantown, MD 20876-2711
Phone: 1 (301) 428-5500

Stats

  • Employer Type: Public
  • Principal Engineer: Darin Deluca
  • Principal Engineer: Barre Lankford
  • Principal Engineer: John Stein

Major Office Locations

  • Germantown, MD