Hughes Network Systems, Inc has entered into a letter of intent (LOI) for the establishment of satellite-enabled Thuraya mobile telephone service in Russia.
HNS is joined in the LOI by three firms: (1) the satellite-based service provider, Thuraya Satellite Telecommunications Company; (2) TMSat, a privately owned Russian service provider, which holds the sole rights to distribute and market Thuraya’s services and products throughout Russia; and (3) the Russian Federation’s largest satellite operator, Russian Satellite Communications Company (RSCC).
With a huge satellite footprint over North and Central Africa, the Middle East, and South Asia, Thuraya’s reach covers more than two billion people. In a little more than one year of service, Thuraya has won more than 125,000 subscribers, all utilizing the small, cell phone-sized Thuraya handset that combines satellite, GSM cellular and GPS functionality, developed and manufactured by HNS.
Boeing is the prime contractor for the satellite platform, while HNS supplies the Thuraya communications gateway and network management system, in addition to manufacturing Thuraya phones.
Under the terms of the LOI, TMSat has committed to acquire a Thuraya communications gateway and satellite earth station from HNS, which will be installed in Dubna, Russia and be operated by RSCC on TMSat’s behalf. Initially, TMSat’s service in Russia will operate through the Thuraya Primary Gateway in Sharjah, United Arab Emirates, provided by HNS and commissioned in 2002.
“The expansion of Thuraya services into Russia and the strength of the companies involved in the rollout are yet additional examples of the importance of mobile satellite communications services and the global demand that drives its growth,” said Mohammad Omran, Chairman of Thuraya Satellite Telecommunications Company.
“TMSat sees a tremendous market for Thuraya satellite-based mobile telephone service in Russia, which is both complementary to and compatible with terrestrial GSM cellular service,” TMSat’s CEO Nikolay Prokhorov said.
“The combined expertise of HNS, Thuraya and RSCC, together with TMSat, will yield a very formidable and unique service offering for our customers, available everywhere in Russia and with roaming throughout the vast area in Eurasia served by Thuraya.”
RSCC’s General Director, Alexander Duka commented, “Meeting the demand for advanced communications services throughout Russia is a critical imperative of the Ministry of Communications to foster economic growth.
To date, one of the obstacles to meeting that demand has been the relative lack of terrestrial telecommunications infrastructure in Russia. For this reason, the ubiquitous nature of satellite communications, combined with the strengths of HNS, Thuraya, TMSat and RSCC, makes this partnership ideal for serving the Russian market.”
“Russia represents one of the fastest growing economies in the world and HNS is proud to have been chosen as the provider of the Thuraya satellite gateway and handsets in this partnership.
Indeed, the great success of Thuraya in exceeding well over 125,000 customers in just over a year of service bodes well for TMSat’s success as the sole licensed provider throughout Russia,” added Dr. Arunas Slekys, Vice President and General Manager of Russia & NIS Business for HNS.
The Thuraya-related letter of intent is only one of several HNS initiatives in the Russian satellite communications market.
As part of its overall strategy to rapidly expand satellite services throughout the region, HNS has now succeeded in establishing a total of 13 authorized value-added service providers in Russia and three NIS countries: Ipnet, Crosna, Sattel, Satcomtel, Golden Telecom, Satcom, Equant Moscovsky Teleport in Russia; Datasat and Ukrsat in Ukraine; TNSPlus and Katelcoin Kazakhstan; and Delta Telecomin Azerbaijan.
