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Echostar to buy Hughes Communications

Discussion in 'General DISH™ Discussion' started by RAD, Feb 14, 2011.

  1. RAD

    RAD Well-Known Member

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    Dripping...
    From http://www.reuters.com/article/2011/02/14/hughes-echostar-idUSL3E7DE0VC20110214

    So Charlie ends up with the company that used to own DIRECTV.
     
  2. James Long

    James Long Ready for Uplink! Staff Member Super Moderator DBSTalk Club

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    What goes around comes around ... although Forbes puts the price higher (Forbes includes the debt).
    http://blogs.forbes.com/ericsavitz/2011/02/14/echostar-to-buy-hughes-communications-for-2-billion/
     
  3. Nick

    Nick Retired, part-time PITA DBSTalk Club

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    The...
    As a younger Jake once said, "Ironic, isn't it?" :p
     
  4. SayWhat?

    SayWhat? Know Nothing

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    Pondering the significance (if any)
     
  5. JosephB

    JosephB Icon

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    For the day to day DBS customer, probably not very much significance, other than Dish will probably at a minimum start co-selling HughesNet. Most of Hughes' business these days are to businesses and governments. I don't think Hughes has any satellites in any locations that would be much use to Dish.
     
  6. SayWhat?

    SayWhat? Know Nothing

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    Fine, it puts them back in the satellite market like they were when they partnered with StarBand. They can sell DBS or satellite internet or a package of both. All well and good, but there are still the latency and bandwidth issues, so it doesn't do anything for Sling or any other way of streaming or sharing video.
     
  7. 356B

    356B Icon

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    A friend has HughesNet for internet in a extremely rural area of Nor-CAL... and hates it.......that said in their situation they tell me, they have little choice.
    They've had equipment issues, service issues and limitation issues...never the less they have access.......maybe Dish will improve things.......more than likely for a price. :icon_bb:

    :icon_band
     
  8. Stuart Sweet

    Stuart Sweet The Shadow Knows!

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    Well that's a headshaker.
     
  9. JosephB

    JosephB Icon

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    You guys are all viewing it through the shades of how they'd work Dish into it. Remember Echostar is a separate company from Dish now. A large majority of Hughes' business has nothing to do with Hughesnet. I wouldn't be a big surprised if they spun off the HughesNet business like they spun off Dish.
     
  10. SayWhat?

    SayWhat? Know Nothing

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    Yeah, I kinda shaking mine too. Like I noted, Dish and StarBand had partnered previously. A couple of years back, SB was in trouble and could have been had for a small fraction of the Hughes deal price.

    Hughes has a terrible reputation for customer service while I've never had trouble with SB.
     
  11. sum_random_dork

    sum_random_dork Icon

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    Sounds to me this fits more with their purchase a few years back of Slingbox, looking to get totally into the set top business.
     
  12. James Long

    James Long Ready for Uplink! Staff Member Super Moderator DBSTalk Club

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    Agreed ... for those who like to read quarterly reports, here's the latest (pdf) from Hughes website.
    Excerpts-
    Consolidated revenues of $266 million for a 6% growth over the third quarter of 2009; growth of 10% if revenues from the discontinued contract with Telematics are excluded.

    New orders of $549 million for a growth of 164% over the third quarter of 2009, with major orders from Barrett Xplore, Rite Aid, Social Security Administration, Dillards, TJ Maxx, Buckeye Pipeline, GETN, and ConocoPhillips in our North America Broadband business; JSC Iskra, GTECH Colombia, Camelot, PrimeNet, VIVO, SEDUC, SREI and Allahabad Bank in our International Broadband business; and Glocom and Harris in our Mobile Satellite business.

    Consumer business continues impressive growth trajectory:
    – Total revenue increased by 14% and services revenue by 19% over the third quarter of 2009.
    – Strong third quarter subscriber gross adds of 49,000 and net adds of 13,000.
    – Consumer ARPU increased to $75 from $71 in the third quarter of 2009.
    – Churn improved to 2.2% from 2.3% in the third quarter of 2009.

    About Hughes Communications, Inc.
    Hughes Communications, Inc. (NASDAQ: HUGH) is the 100 percent owner of Hughes Network Systems, LLC. Hughes is the global leader in providing broadband satellite networks and services for enterprises, governments, small businesses, and consumers. HughesNet® encompasses all broadband solutions and managed services from Hughes, bridging the best of satellite and terrestrial technologies. Its broadband satellite products are based on global standards approved by the TIA, ETSI, and ITU standards organizations, including IPoS/DVB-S2, RSM-A, and GMR-1. To date, Hughes has shipped more than 2.2 million systems to customers in over 100 countries.​

    Hughes is more that just the HughesNet consumer service. http://consumer.hughesnet.com/

    Echostar offers business television services ... why not offer business data services as well?

    Referring to the home consumer service?
     
  13. ghontz1

    ghontz1 AllStar

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    I have Hughes net service only because nothing else is available to me because I live out of town.Dial up around here is a big joke no fiber optic lines lucky to get 28 kps. Hughes net customer service is a joke the equipment is junk. Broke down on me 3 times last summer and all 3 times I had to pay for service calls. They have a FAP that makes it impossible to have netflix or any kind of movie download service.Latency is so bad no online games or voip service is possible. as soon as I have other options I will drop this crappy service in a heart beat.That is why I have not order new 9000 because I do not want to be stuck in 2yr. contract and pay early termination fees for when I do dump this service.
     
  14. Paul Secic

    Paul Secic Hall Of Fame

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    Didn't Dish buy Starband around 2002 or thereabouts?
     
  15. phrelin

    phrelin Hall Of Fame DBSTalk Club

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    Well, at this point I'm about as confused about the 2008 spinoff of Dish Network as I was when it was proposed.

    Earlier this month we had the Press Release - DISH To Purchase DBSD, Developer of U.S. HYBRID Communications System thread and Dish Network is trying to buy Terrestar.

    As we all know, Echostar bought Sling Media which now has a marketing focus on Dish.

    And it isn't like they both aren't in the satellite business. From the last Dish Network quarterly:
    From the last Echostar quarterly:
    Now Echostar is buying a company that has a retail satellite-oriented internet service business along with satellite operations and business services .

    I just don't see the point of keeping these two operations separate under essentially the same ownership. Logic says that there should be a single company with a satellite operations division/subsidiary, a business/multifamily satellite and internet services division/subsidiary, and a retail TV and internet services division/subsidiary.

    What don't I understand?:confused:
     
  16. James Long

    James Long Ready for Uplink! Staff Member Super Moderator DBSTalk Club

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    "StarBand is a two-way satellite broadband Internet service available in the U.S.. StarBand Communications Inc. was initially a joint venture between Gilat Satellite Networks, EchoStar and Microsoft, and the StarBand service was launched in 2000. StarBand Communications filed for Chapter 11 bankruptcy in 2002 and emerged from bankruptcy in 2003. In March 2005, StarBand Communications was acquired by Spacenet, a division of Gilat Satellite Networks, which continues to operate the service. As of mid-2005, StarBand had approximately 32,000 subscribers."
    Wikipedia

    http://www.spacenet.com/services/starband/
    "StarBand, a service provided by Spacenet Inc., is a value oriented two-way high-speed satellite Internet access service available for small office/home office (SOHO) and small business customers throughout the United States, Canada, Puerto Rico, the Virgin Islands, and several Caribbean and Central American countries. The latest line of StarBand services – Nova 1000 and 1500 – offer reliable broadband satellite Internet with faster speeds than previous generations, PC professional support services and value-added features."
     
  17. James Long

    James Long Ready for Uplink! Staff Member Super Moderator DBSTalk Club

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    The focus of the separate businesses.

    DISH Network is a consumer satellite company providing service to individual home and business customers and, like DirecTV, they own satellites. DISH leases some satellite and backhaul capacity from EchoStar.

    EchoStar is a technology company providing satellite transmission, fiberoptic backhauls and points of presence plus receiver development and other products. Their primary customer is DISH Network but they also have other direct customers. Hughes is being purchased by EchoStar.

    Keeping the businesses separate allows each business to concentrate on their own mission. Just because a man owns two businesses doesn't mean they have to be merged together.
     
  18. phrelin

    phrelin Hall Of Fame DBSTalk Club

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    Sure. But if a man owns one business with highly interrelated activities it doesn't mean he has to split it into two businesses with activities highly interrelated between the two businesses.;)
     
  19. James Long

    James Long Ready for Uplink! Staff Member Super Moderator DBSTalk Club

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    But he can ... and he did. He didn't get to be a multi-billionaire by making bad decisions.:)
     
  20. sigma1914

    sigma1914 Well-Known Member DBSTalk Club

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    Counting cards wasn't a good decision. :lol:
     

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