HughesNet moves one step closer to ka band service....

HughesNet announced lsat week that they have completed a extensive 30 day testing program on the capabilities of ka band internet on the Spaceway II satellite owned by DirecTV Group ( the former owner of Hughes). This testing came as part of the purchase agreement between HughesNet and the DirecTV Group unit of NewsCorp at the beginning of this year. HughesNet plans to launch their own ka band satellite, SpaceWay III, early in 2007 and be operational by late in the year.

“Completion of over-the-air testing on SpaceWay 2 is a significant milestone for Hughes and indeed for the satellite industry,” said Pradman Kaul, chairman & CEO of Hughes. “Confirmation of SpaceWay's fundamental technological advantages, namely on-board switching and ten times greater capacity than today's Ku-band satellites, means we now can plan our commercial service launch in 2007 with high confidence in its unique cost/performance benefits. We anticipate that SpaceWay will expand the addressable market for broadband satellite IP services by four times or more.”

According to Hughes, its SpaceWay architecture can scale up to two million terminals per satellite and will provide coverage with multiple spot beams across the U.S. including Alaska, Hawaii and Puerto Rico, as well as in selected areas in Canada, Mexico, and major cities in South America.

I believe HughesNet realizes that the U.S. consumer internet market is overcrowded and will be setting sights on the likes of Mexico, Central & South America, where infrastructure is still in early development. With the claim that a single SpaceWay satellite can handle up to two million customers, they will certainly be looking for new markets. Since the Spot Beams on SpaceWay satellites can be steered from one area to another, they can "chase" the market if they choose.......something the competition's bird, Wildblue I, is not able to do.