Hughes Expands China Presence

Satellite communications specialist Hughes Network Systems (HNS) is expanding its relationship with Internet service provider ChinaCast.

Under a new deal, HSN will provide equipment including a new network operations center and remote satellite terminals. The companies also agreed to jointly market enterprise network services in China.

Financial terms of the agreements were not disclosed.

The upgrade will allow ChinaCast to offer two-way broadband satellite services — such as voice and videoconferencing — to customers in the government, insurance, health care, banking and energy sectors.

For HNS, based in Germantown, Md., the deal furthers its presence in China, which because of its population and lack of traditional telecom infrastructure in outlying areas, is promising.

“The China market is, without a doubt, one of our largest international markets,” said Bahram Pourmand, an executive vice president with HNS’ international division.

The latest deal, especially the joint marketing component, will allow HNS to gain insight into the local market, Pourmand added.

ChinaCast is no stranger to using partnership to gain marketshare. In addition to HNS (a subsidiary of Hughes Electronic Corp.), the Bejing company has ties to Intel Capital, Sunevision and Technology Venture Holdings.

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