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Hughes puts $1.4B in satellite
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March 17, 1999: 8:19 a.m. ET
Investment earmarked for first system in Spaceway broadband network
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NEW YORK (CNNfn) - Hughes Electronics Corp. said it has invested $1.4 billion in the first system of the Spaceway global broadband satellite network, a system designed to provide high-bandwidth and high-speed communications.
The El Segundo, Calif.-based satellite communications company said the new system will provide bandwidth on demand, and will allow customers to pay only for the bandwidth they use: less for a minimal use such as e-mail, and more for a bigger use such as a corporate network.
Hughes said it hopes to begin operation of the Spaceway system in North America in 2002, and that it will work with strategic partners to roll out systems in Europe, the Middle East, Africa, Latin America and Asia.
"The demand for broadband data is expected to increase dramatically in the foreseeable future, with industry estimates projecting the U.S. market alone at $50 billion in 2005," said Michael Smith, Hughes Electronics chairman. "Spaceway's technological advancements in frequency re-use capability will translate into an eight-fold increase in the satellite's revenue-generating potential at the wholesale level."
Hughes Electronics (GMH) is a separately traded division of General Motors (GM). GM Hughes shares closed Tuesday at 49-1/16, up 5/16. 
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Hughes Electronics
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