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Germantown, Md.-based Hughes Network Systems (HNS) is searching the world for partners to help fund its SpaceWay Ka-band satellite broadband project. HNS parent Hughes Electronics Corp. (GMH) has already pumped $1.8 billion into the project.
That Hughes money has put SpaceWay on solid financial ground. "Unlike virtually all of the other Ka-band wannabes in the business, SpaceWay is fully funded," said Steven Salamoff, assistant vice president of marketing with Hughes Network Systems. The SpaceWay satellites will be provided service under the DirecWay brand name, he added.
"The business plan is based on a prudent and proven formula," Salamoff said. "From the beginning, we can make sure this thing is going to happen."
So far, Hughes has lined up 22 companies as part of the SpaceWay project, including three large companies that joined just last week. They are Sony (SNE), supporting video conferencing service; Intel (INTC), exploring broadband architectures for home-based networks; and EMC (EMC), delivering storage management products. More than 600 companies have applied to join the alliance.
Roger Rusch, president of Palos Verdes, Calif.-based consultancy TelAstra, thinks SpaceWay "is the most exciting opportunity for broadband and Ka-band that I've seen."
One reason is that the system would offer flexibility for how a network is put together for each customer, Rusch said.
"SpaceWay could create a virtual, private network for each of its clients," Rusch said. "The system could focus on the geographic areas that need the most power."
SpaceWay will launch its first satellite to serve North America in mid-2003. The plan is for SpaceWay to follow with two additional launches and to use one of the three satellites as an in-orbit spare. Commercial service for North America is scheduled to begin by January 2004.
"We've invested very heavily as a company in...