Satellite Internet News

Hughes is one of the leading satellite communication providers in the world. The history of the company goes back to 1932 when Howard Hughes fascinated by aircrafts founded Hughes aircrafts. During the Second World War, the US government asked Hughes to produce a cargo aircraft; but Hughes was unable to deliver the aircrafts until two years after the end of the war. After the war Hughes became one of the largest defense contractors to the United States government supplying weapons systems, missiles, satellites and lasers. The company was very successful and managed by highly qualified engineers.  Howard Hughes started getting involved in the day to day management of the company around 1950. He was a billionaire who started running the company without any corporate governance. He started making his own decisions and over-ruling the decision made by the board. As a result many top executives left the company during that time.

The company became part of the Howard Hughes Medical Institute in 1953 and availed tax benefits from the Government. It continued to manufacture missile systems and other defense equipment till 1984, when the US government stopped procurement from Hughes due to poor quality. Questions were also raised on its tax free status. The company was ultimately put up for sale and taken over by GM for $5 billion dollars. By 1988, the company was producing half the communication satellites that were manufactured in the United States. In 1989, the company clocked sales of $3 billion but profits were not in line. In 1994, Hughes shut down many of its defense business facilities and the business of GM Hughes was split into seven divisions. By 1993, the satellite and telecommunications business was generating $2 billion in revenue. Stores such as Walmart implemented the Hughes network technology to transmit business data.

GM was not getting the right value and the objectives for buying Hughes were not being achieved. The automotive electronics business was not giving desired results and it was consolidated with Delphi another automotive electronics company of GM. The company under new CEO Michael Armstrong focused on DirecTV business. After the restructuring exercise Hughes focused on satellite and communications business; developing integrated circuits, electronic memory protection devices and high speed antennas which linked homes and small businesses with the satellite network of Hughes.

Today Hughes Network Systems headquartered in Maryland USA is one of the leading providers of broadband Internet and satellite communication services. It is headed by Pradman P. Kaul who is the Chief Executive Officer of the company. He is also the President and Chief Executive Officer of Hughes Communications, Inc. The satellite Internet business is one of the highest revenue grosser in the Hughes group and has over 325,000 subscribers. The history of Hughes is very old and it has seen many ups and downs but still comes out successful with new technologies and offerings for customer. Howard Hughes’ dream aircraft company is one of the most recognized brands in the world.