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Hughes Network Systems
Hughes Network Systems, LLC is an American telecommunications company that specializes in providing satellite-based communication services for consumer and enterprise markets. It is headquartered in Germantown, Maryland and provides satellite internet services under the brand HughesNet. HughesNet has over a million subscribers in the Americas in late 2023, down from 1.4 million in early 2022. Hughes Network Systems is a wholly owned subsidiary of EchoStar, which acquired its former parent company, Hughes Communications, in 2011.
Hughes Communications was founded in 1971 under the name Digital Communication Corporation (DCC) by a group of seven engineers and a lawyer led by John Puente and Dr. Burton Edelson, who all previously worked together at Comsat Laboratories. With $40,000 in startup capital, the company operated from a garage in Rockville, Maryland, designing circuit boards for telecom related products.
By 1977, Digital Communications Corp. had 250 employees and $10.6 million in revenue. In 1978, Digital Communications Corp. was acquired by Microwave Associates for an undisclosed sum, becoming MA/COM-DCC and began developing satellite related products. The company invented the very small aperture terminal (VSAT) in 1985. That year, the company sold its first VSAT network to Wal-Mart, which used the “technology to connect retail stores in rural areas.” According to SatMagazine, “the global VSAT market is estimated to reach $10 billion by 2021.” In 1987, MA/COM-DCC was acquired by Hughes Aircraft Corporation for $105 million and renamed Hughes Communications.
In 2004, News Corp acquired a controlling interest in Hughes through a $6.5 billion purchase intended primarily for its DirecTV unit. DirecTV also began selling off its ownership interests, culminating in a $100 million sale to a private equity firm in 2005. As a result, Hughes became a wholly owned subsidiary of SkyTerra Communications Inc., which was controlled by the investment firm.
Hughes Communications was spun-off as an independent public company in 2007 and began trading on NASDAQ under the ticker symbol HUGH.
On February 14, 2011, Englewood, Colorado-based EchoStar announced it will acquire Hughes Communications, and its subsidiaries including its main operating subsidiary, Hughes Network Systems, for about $2 billion. The acquisition was completed on June 8, 2011, resulting in the dissolution of Hughes Communications into EchoStar and retaining Hughes Network Systems as a wholly owned subsidiary of EchoStar.
In May 2024, Hughes Network Systems and Dish Network (which was acquired by EchoStar in 2023) announced a bundle of Dish satellite TV with Hughesnet satellite internet.
On June 6, 2025, it was reported that EchoStar Corporation was preparing to file for Chapter 11 bankruptcy protection after the Federal Communications Commission (FCC) suspended EchoStar's ability to plan out strategic decisions for its Boost Mobile subsidiary. In addition, other factors contributing to this decision included missing over $500 million in interest payments and the termination of the Dish Network acquisition by DirecTV.
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Hughes Network Systems
Hughes Network Systems, LLC is an American telecommunications company that specializes in providing satellite-based communication services for consumer and enterprise markets. It is headquartered in Germantown, Maryland and provides satellite internet services under the brand HughesNet. HughesNet has over a million subscribers in the Americas in late 2023, down from 1.4 million in early 2022. Hughes Network Systems is a wholly owned subsidiary of EchoStar, which acquired its former parent company, Hughes Communications, in 2011.
Hughes Communications was founded in 1971 under the name Digital Communication Corporation (DCC) by a group of seven engineers and a lawyer led by John Puente and Dr. Burton Edelson, who all previously worked together at Comsat Laboratories. With $40,000 in startup capital, the company operated from a garage in Rockville, Maryland, designing circuit boards for telecom related products.
By 1977, Digital Communications Corp. had 250 employees and $10.6 million in revenue. In 1978, Digital Communications Corp. was acquired by Microwave Associates for an undisclosed sum, becoming MA/COM-DCC and began developing satellite related products. The company invented the very small aperture terminal (VSAT) in 1985. That year, the company sold its first VSAT network to Wal-Mart, which used the “technology to connect retail stores in rural areas.” According to SatMagazine, “the global VSAT market is estimated to reach $10 billion by 2021.” In 1987, MA/COM-DCC was acquired by Hughes Aircraft Corporation for $105 million and renamed Hughes Communications.
In 2004, News Corp acquired a controlling interest in Hughes through a $6.5 billion purchase intended primarily for its DirecTV unit. DirecTV also began selling off its ownership interests, culminating in a $100 million sale to a private equity firm in 2005. As a result, Hughes became a wholly owned subsidiary of SkyTerra Communications Inc., which was controlled by the investment firm.
Hughes Communications was spun-off as an independent public company in 2007 and began trading on NASDAQ under the ticker symbol HUGH.
On February 14, 2011, Englewood, Colorado-based EchoStar announced it will acquire Hughes Communications, and its subsidiaries including its main operating subsidiary, Hughes Network Systems, for about $2 billion. The acquisition was completed on June 8, 2011, resulting in the dissolution of Hughes Communications into EchoStar and retaining Hughes Network Systems as a wholly owned subsidiary of EchoStar.
In May 2024, Hughes Network Systems and Dish Network (which was acquired by EchoStar in 2023) announced a bundle of Dish satellite TV with Hughesnet satellite internet.
On June 6, 2025, it was reported that EchoStar Corporation was preparing to file for Chapter 11 bankruptcy protection after the Federal Communications Commission (FCC) suspended EchoStar's ability to plan out strategic decisions for its Boost Mobile subsidiary. In addition, other factors contributing to this decision included missing over $500 million in interest payments and the termination of the Dish Network acquisition by DirecTV.