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News Corp may divest Hughes Network
By siliconindia staff writer
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Tuesday, 13 April 2004, 19:30 IST
MUMBAI: Media conglomerate News Corp has identified Hughes Network and satellite operator Panamsat as non-core businesses and is looking at divesting its stake in these entities across the world, officials told Economic Times.
News Corp is looking at divesting its stake in Hughes Software Systems, a Delhi based software company. News Corps 55% stake in Hughes Software is held through Hughes Network Systems India and its subsidiaries in Mauritius.
Officials, speaking during a conference call on the Hughes Software results, said that if News Corp were to divest its stake in Hughes Network, then the Indian joint venture company Hughes Escorts Communications (HECL) and subsidiary Hughes Networks Services would also be up for sale.
Hughes Escorts is a 51:49 joint venture offering Very Small Aperture Terminal (VSAT) telecom services in the country, News Corp holds a 49% stake while Escorts hold the majority stake.
Hughes Network Systems is a 100% subsidiary and offers broadband satellite services in India.
It is relatively a new company in the group compared to Hughes Software and HECL.
HECL was formed in 1992, to provide turnkey satellite communications solutions and outstanding service and support to Indian business and government organisations. HECL began providing VSAT (Very Small Aperture Terminal) satellite communications services through its Hub Earth Station in Gurgaon (near Delhi) in February 1995. This service, called DiRECWAY (shared) Network Services earlier known as Hughes Net, provides customers with interactive data, voice, and fax communications facilities. HECL is the largest Wide Area Network (WAN) service provider in India, serving more than 200 enterprise customers.