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Hughes bags $100 M Lucent 3G order
By siliconindia
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Wednesday, 03 September 2003, 19:30 IST
NEW DELHI: Hughes Software Systems Ltd (HSS), a subsidiary of Hughes Electronics (HE) is learnt to have clinched a massive order valued at $100 million for the supply of software and services for 3G mobile equipment to Lucent Technologies, USA, reports Economic Times, a business daily in India
HSS, which has a strategic relationship with Lucent, has become a key beneficiary of the recent $1 billion contract bagged by US-based Lucent from Sprint PCS for the supply of 3G mobile equipment.
Earlier this year, HSS had announced a multi-year outsourcing relationship with Lucent Technologies by virtue of which HSS took over as many as 186 employees from Lucent. About 55% of these were based out of Bangalore and the rest in Germany.
When contacted, HSS chief operating officer Manoranjan Mohapatra admitted HSS would be a logical beneficiary of Lucents $1-billion contract with Sprint, but declined to give the value of the deal that will percolate down to HSS. Industry sources, claim however, that the immediate benefit of sub-contracted work to HSS could be to the tune of approximately $100 million spread over the next 2 years.
The new multi-year contract between Sprint and Lucent covers major markets across the US. As part of the deal, Lucent will provide Sprint with the Flexent CDMA Modular Cell 4.0 and other advanced base stations, switching equipment, related software and advanced services.
Under the agreement, Lucent Worldwide Services will provide installation, integration, optimization and Remote Technical Support services for Sprints network upgrade.
HSS is also learnt to be on the verge of clinching a high-value deal with Nokia, the worlds largest maker of mobile phones, which recently announced plans to increase its marketshare in India and boost software outsourcing from the country. HSS, being Nokias only vendor in India, is expected to be the sole or the largest beneficiary of Nokias ramp-up plans.
HSS, which offers a range of communications-related software services, products and solutions, is a subsidiary of Hughes Electronics (HE) Corporation. Hughes Network Systems (HNS), a unit of HE, is its largest customer.
For HSS, there has been strong growth momentum in the non-HNS business, ever since the Lucent contract came its way earlier this year. Its relationship with Lucent has also created greater revenue visibility for HSS.
A few months ago Australian News Corp. became the new owner of Hughes Softwares parent company. While the parent contributes about 28 per cent of total revenue. it is unclear whether or not this business will continue as usual. (Courtesy: Economic Times)