Hughes Network Systems
| Company type | Subsidiary |
|---|---|
| Industry | Telecommunications |
| Founded | 1971 |
| Founder | John Puente, Burton Edelson, and others |
| Headquarters | Germantown, Maryland , United States |
Area served | Americas, worldwide (VSAT terminals) |
Key people | Hamid Akhavan (CEO), Paul Gaske (COO) |
| Products | Satellite internet services (HughesNet), VSAT terminals, managed network solutions |
| Revenue | $1.97 billion (2022) |
| Owner | EchoStar Corporation |
Number of employees | 2,000 (2022) |
| Parent | EchoStar Corporation |
| Website | www |
Hughes Network Systems, LLC is a telecommunications firm based in the United States, focusing on satellite communication solutions for both consumer and business sectors. Its headquarters are located in Germantown, Maryland, and it markets satellite internet services under the name HughesNet. By the end of 2023, HughesNet had a subscriber base exceeding one million throughout the Americas, a decrease from 1.4 million at the start of 2022. Hughes Network Systems functions as a fully owned subsidiary of EchoStar, which acquired Hughes Communications, its previous parent company, in 2011. In 2022, the company generated revenues amounting to $1.97 billion and employed around 2,000 staff members. The leadership team includes CEO Hamid Akhavan and COO Paul Gaske.
History
Originally established in 1971 as Digital Communication Corporation (DCC), Hughes Communications was founded by seven engineers and one attorney, led by John Puente and Dr. Burton Edelson, all formerly associated with Comsat Laboratories. The startup began operations in a Rockville, Maryland garage with an initial investment of $40,000, focusing on designing telecommunications circuit boards.
By 1977, the company had grown to 250 employees and reported revenues of $10.6 million. In 1978, Microwave Associates purchased DCC for approximately $8 million, renaming it MA/COM-DCC and shifting its focus toward satellite technology products. The firm developed the very small aperture terminal (VSAT) in 1985 and secured its first VSAT network client with Wal-Mart to connect rural stores. Forecasts estimated the global VSAT market would reach $10 billion by 2021. In 1987, Hughes Aircraft Corporation acquired MA/COM-DCC for $105 million and rebranded it as Hughes Communications.
In 2004, News Corp gained majority control of Hughes through a $6.5 billion acquisition primarily aimed at DirecTV. Subsequently, DirecTV divested its stakes, leading to Hughes becoming a wholly owned subsidiary of SkyTerra Communications Inc., which was backed by private equity investors.
Hughes Communications became an independent publicly traded company in 2007 under the NASDAQ ticker HUGH. On February 14, 2011, EchoStar announced plans to acquire Hughes Communications and its subsidiaries for approximately $2 billion, finalizing the deal on June 8, 2011. Following this acquisition, Hughes Communications was integrated into EchoStar while Hughes Network Systems continued as its fully owned subsidiary.
In May 2024, Hughes Network Systems partnered with Dish Network—acquired by EchoStar in 2023—to introduce a bundled offering that combines Dish satellite television with HughesNet satellite internet service to improve connectivity options in rural regions across America.
On June 6, 2025, reports surfaced that EchoStar Corporation was preparing to file for Chapter 11 bankruptcy protection due to Federal Communications Commission restrictions impacting strategic decisions for its Boost Mobile unit, missed interest payments exceeding $500 million, and the collapse of Dish Network’s planned acquisition by DirecTV.
Satellite systems
Hughes introduced the Jupiter (JUPITER) System in 2012—a VSAT ground platform delivering advanced terminals alongside upgraded gateway infrastructure and sophisticated air interface capabilities compatible with both high-throughput and traditional satellites. This system supports broadband internet access, community Wi-Fi networks, cellular backhaul solutions, digital signage applications, and mobility services.
The Jupiter Aero System from Hughes combines airborne equipment with ground-based components to offer broadband connectivity aboard aircraft. By 2018, approximately 1,000 planes were equipped with this technology.
In March 2018, Hughes enhanced the Jupiter system by doubling throughput on HT2xxx terminals to surpass speeds of 200 Mbit/s while expanding overall capacity.
The company's HX and HT satellite broadband platforms provide broadband IP connectivity to telecommunications providers and military customers globally, delivering high-speed internet access along with VoIP and video services.
Hughes has deployed more than nine million VSAT terminals worldwide across over 100 countries and commands a market share exceeding fifty percent within the VSAT sector.
Satellite Backhaul Solutions
Hughes delivers satellite backhaul services for cellular networks, enabling the extension of 4G/LTE connectivity to isolated and rural regions worldwide where conventional backhaul options are either impractical or prohibitively expensive due to challenging terrain. Their 4G/LTE optimization technology achieves up to 60% bandwidth reduction, significantly improving operational efficiency for telecommunications providers.
HughesNet
HughesNet, a service operated by Hughes Network Systems, stands as a prominent satellite-based high-speed broadband provider primarily catering to rural customers who lack access to wired internet infrastructure. By 2018, Hughes commanded a 69% share of the U.S. residential satellite internet market. The service also supports government agencies, commercial enterprises, and military operations.
The service initially debuted in 1996 under the name DirecPC, was rebranded as Direcway in 2002, and transitioned to HughesNet in 2006 following DirecTV's divestiture. Hughes launched broadband satellite internet offerings in 2012 and met FCC broadband performance criteria with the introduction of HughesNet Gen5 in 2017, utilizing the high-capacity EchoStar XVII and XIX satellites.
International expansion of HughesNet began in 2016 with its entry into Brazil, followed by launches in Colombia (2017), Peru (2018), Ecuador (2018), and both Mexico and Chile (2019), marking a deliberate growth strategy within Latin America.
According to the FCC’s Measuring Broadband America report, HughesNet ranked first for delivering download speeds that met or exceeded advertised rates from 2014 through 2017. Additionally, U.S. News & World Report honored it as Best Rural Internet Provider and Best Satellite Internet Provider in 2022.
Nevertheless, due to reliance on geostationary satellites, HughesNet experiences latency exceeding 600 milliseconds—more than ten times that of terrestrial networks or low Earth orbit alternatives like Starlink—posing challenges for latency-sensitive uses such as video conferencing and online gaming.
Managed Network Solutions
Hughes offers managed network services designed for distributed enterprise environments and government organizations. Its HughesON suite encompasses SD-WAN, Wi-Fi management, location analytics, cloud-hosted digital signage, and employee training platforms, aligning with its objective to increase presence in the managed connectivity market.