Ericsson has signed a contract with Hughes Network Systems (HNS), a subcontractor to Hughes Space and Communications (HSC), to deliver GSM switching equipment and other system elements for gateway infrastructure to the Thuraya mobile satellite system. Thuraya is a private joint stock company headquartered in Abu Dhabi, United Arab Emirates. The initial contract value for Ericsson is approximately $54 million.
This is Ericsson's first gateway infrastructure contract for a
regional mobile satellite system using a geostationary satellite.
Thuraya is planning to establish a geomobile satellite system that
will provide coverage in Asia, Northern Africa, and parts of Southern
and Central Europe to approximately 2 million subscribers beginning in
late 2000. Thuraya services will include voice, fax, and data
services, that will be offered via handheld, vehicular, and fixed
terminals to users throughout the coverage area.
HSC signed a contract in September 1997 to become the turnkey
supplier for the Thuraya mobile satellite and HNS was selected by HSC
as the subcontractor for the development and manufacturing of
Thuraya's geomobile satellite system ground network and as the first
source for dual-mode user terminals. This contract confirms Ericsson's
commitment to develop specific equipment for the mobile satellite
systems that will play an important role in providing complementary
service to existing terrestrial cellular system operators and fixed
telephone subscribers in remote areas. Areas where it is cost
prohibitive to reach by installation of cellular land base stations or
fixed networks can easily be reached via the multinational coverage
provided by satellites.
Roaming agreements between cellular operators and satellite
service providers and the availability of dual-mode handheld phones
will facilitate these services.
