When Gurgaon-based Hughes Communications India Limited (HCIL) started providing VSAT connectivity under the brand HughesNet Network Services in 1995, the satellite industry in India was still in its infancy. With time, however, satellite communication gathered steam and has now emerged as a viable connectivity option. In step with this growth, HCIL has steadily added to its portfolio of services. Today, the company is a strong contender in the country’s VSAT space, sharing the turf with operators like HCL Comnet, Bharti Airtel, Essel Shyam and Tatanet Services.
HCIL enjoys a 34.30 per cent market share in the Indian VSAT market, according to the Telecom Regulatory Authority of India’s performance indicator report for the quarter ended September 2007.
“Although a player in a niche segment, HCIL has proved its mettle vis-? -vis the competition,” says telecom analyst Mahesh Uppal. “The company is doing rather well, which is reflected in the fact that it has managed to retain its leadership position in the VSAT space.”
HCIL has a strong client portfolio including 40 of the top 50 brands in the country. Says K. Krishna, chief technology officer with the company: “Certain segments, including retail, oil and gas, and automation have been our traditional strength areas. We have 100 per cent market share in these sectors and have never lost a customer to competition.”
Originally incorporated as a joint venture between Hughes Network Systems and Escorts Limited, the company, apart from providing VSAT services, has also been delivering enterprise networking, ecommerce and global education services.
Its business is divided into three broad streams. The first of these, HughesNet Global Education aims at providing higher education to students across the country via its network of Interactive Onsite Learning classrooms. HughesNet Fusion, the second segment, is aimed at creating multi-service super stores, such as information and communication technology kiosks that offer end-consumers multiple services (online education programmes, prepaid recharge, mobile top-ups, gaming services and international calling). The third stream of business is HughesNet Enterprise Solutions that offers services in three core areas: network services (which include satellite-based connectivity, terrestrial connectivity, managed network services and systems integration); digital media services (digital cinema, digital signage and business IPTV); and trunking and systems integration services that enable high speed single channel per carrier networks and building of teleports and satellite earth stations.
Today, while its key customer segments remain the same, HCIL is looking to tap new customer segments and diversify its product portfolio. Its approach is to project itself as a “one-stop shop” that not only manufactures products, undertakes research and development, and shares hub services, but also provides maintenance, repairs and integration.
According to Krishna, “Our USP is innovation. If you compare us with any other VSAT company in India, we have brought the best services for our customers and even pioneered a few initiatives in the country.”
Recently, HCIL bagged a contract from the State Bank of India to deploy a network for running its core banking solution across 1,300 branches in the country. At an order value of Rs 400 million, Hughes will offer turnkey solutions like satellite-based virtual private networks, networking equipment (including routers and switches) and managed services including system integration and network management.
The VSAT major also hopes to tap the rural market and has signed a contract with Comat Technologies to supply 10,000 broadband satellite terminals, together with its nationwide HughesNet satellite services and applications, to rural business centres across various states. The service would enable customers in these areas to avail of high speed internet access for e-governance and distance learning.
Stealing a march over its competitors, HCIL has introduced managed broadband services in India. The service enables the customer to connect to remote sites spread across the country and is designed on the dual mediums of DSL and satellite technology. The service utilises bandwidth of 256 kbps and above, and is completely carrier agnostic with multiple vendors like Bharti Airtel, Mahanagar Telephone Nigam Limited, Bharat Sanchar Nigam Limited and Tata Teleservices.
Financially too, the company is on a strong wicket. HCIL registered a turnover of more than Rs 2 billion for financial year 2007-08. This year the VSAT major targets a growth rate of around 25 per cent.
Going forward, the company aims to expand its presence by setting up a hub facility in Hyderabad. “We have already bought the land and want to invest in this facility as a means of staying close to our customers and decreasing our business vulnerability,” says Krishna. “Initially, the site will serve as a centre for disaster recovery, but in time, we shall increase our portfolio of services offered there.”
All in all, it is evident that HCIL will strive to maintain its leadership position in the country’s VSAT space by leveraging the benefits of satellite communication.
