Hughes Network Systems, Inc. and SPT TELECOM, a.s. of the
Czech Republic Becomes Partners in the New Deal
GERMANTOWN, Md., Nov. 29 /PRNewswire/ -- Hughes Network Systems,
Inc. (HNS), a unit of GM Hughes Electronics, announced today that it has
signed a contract to supply a high capacity, fixed wireless digital
telephone system to SPT TELECOM (SPT), the Czech Republic's publicly
owned telecommunications carrier.
The system will be implemented in 1995 and initially will serve
subscribers in the capital city of Prague. By the end of the year,
expansion is expected throughout the Czech Republic. The initial
contract is valued at approximately $12 million for HNS, with the
expansion estimated to reach $70 million.
"This is a very exciting and strategically important opportunity for
both SPT TELECOM and HNS," said Dr. Arunas Slekys, vice president of
digital cellular networks. "Digital wireless technology will enable SPT
to close the gap in satisfying the ever increasing demand for voice and
data services more rapidly and cost-effectively than conventional wired,
or older analog wireless systems. We are proud to have been selected as
SPT's partner to implement our advanced wireless technology in the Czech
Terms of the agreement call for the installation of Hughes' GMH2OOOR
digital wireless system at a switching center in Prague connected to
radio equipment in seven cell sites throughout the city. Customers will
be served via fixed wireless telephones called single subscriber units
(SSU), which communicate via radio signals to nearby cell sites. The
switching system used in the GMH2OOOR system is the Alcaltel 1000 S12.
Significant capital and operating cost savings can be achieved by
deploying such a fixed wireless loop service as an alternative to cable
loops. Using Hughes-proprietary technology, call-carrying capacity can
be increased more than 15 times over conventional analog systems. This
superior spectral efficiency translates into the least amount of cell
sites, radio equipment and lowest costs.
Ing. Michal Cupa, director of planning and development for SPT
TELECOM hailed the contract and expressed his eagerness to achieve a
rapid and successful implementation of the GMH2OOOR system throughout
the Czech Republic. "We chose the HNS system solution for two main
reasons. The Hughes extended-TDMA technology allows us to serve the
maximum number of customers while requiring the minimum amount of
spectrum, which is a very limited resource. And the Alcatel 1000 S12
switch used in the GMH2000R system is also used throughout our landline
network, thereby resulting in full compatibility and the lowest
operating and maintenance costs."
Pradman Kaul, president and chief operating officer of Hughes
Network Systems, said SPT TELECOM is the first to adopt a digital
wireless system in Central Europe. "Digital wireless technology is
enabling entire regions of the globe to 'leapfrog' traditional wireline
technologies and rapidly achieve affordable telecom services for the
mass market, which is essential to accelerate economic growth," he said.
Hughes Network Systems, Inc. is a world leader in digital wireless.
The company is implementing GMH2000R high-capacity fixed wireless
telephone networks in Indonesia, Russia and China. In the southeastern
U.S., the GMH2OOOR is being deployed throughout BellSouth's cellular
mobile network, and by Ameritech, GTE, and Bell Atlantic Mobile Systems
for wireless data services known as CDPD (Cellular Digital Packet Data)
in Chicago, San Francisco and Pittsburgh. HNS is also implementing
Mexico's first CDPD wireless data system under contract to IUSACELL in
Mexico City. HNS pioneered the development of interactive VSATs. In
addition, HNS features a complete line of X.25 packet switching, frame
relay, and ATM products. Headquartered near Washington, D.C., HNS is a
unit of GM Hughes Electronics. Earnings of GM Hughes are used to
calculate the earnings per share of General Motors Class H common stock
Headquartered in Europe, Alcatel is the single largest supplier of
telecommunications equipment in the world. Alcatel's core business
areas include switching and line transmission, radio communications,
telecommunications cable, business systems and transport automation.
Alcatel SEL, a subsidiary that manufactures the S12 switch is
headquartered in Stuttgart, Germany. Parent company Alcatel Alsthom,
trades on the NYSE as ALAN.
/CONTACT: Judy Blake of Hughes Network Systems, (in the U.S.)
CO: Hughes Network Systems
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EOS (PRN) Nov/29/94 09:27 86
-0- (PRN) Nov/29/94 9:42
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