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 Republic." 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 (NYSE: GMH). 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. -0- 11/29/94 /CONTACT: Judy Blake of Hughes Network Systems, (in the U.S.) 301-428-7113/ (GMH ALAN) CO: Hughes Network Systems ST: Maryland IN: TLS SU: CON KW-DS -- DC006 -- 8707 11/29/94 09:27 EST EOS (PRN) Nov/29/94 09:27 86 â -0- (PRN) Nov/29/94 9:42
HUGHES AWARDED FIRST MAJOR FIXED WIRELESS CONTRACT IN CENTRAL
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