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Four satellite companies from three different parts of the world are teaming up to bring mobile voice services to Russia.

Germantown, Md.-based Hughes Network Systems (HNS) is tapping into its experience in the Russian market to spearhead the rollout of Thuraya Satellite Telecommunications’ mobile satellite voice services in that country by deploying a new gateway. Two Russian companies, TMSat and Russian Satellite Communications Co. (RSCC), also are participating in the alliance.

United Arab Emirates (UAE)-based Thuraya has a $1 billion regional satellite voice system that is capable of serving much of Russia but until now the company has been unable to secure the right ground equipment and partners.

To that end, a letter of intent (LOI) between the partners calls for construction of a Russian gateway to offer Thuraya service in Russia. TMSat, a privately owned Russian service provider, has the sole rights to distribute and market Thuraya’s services and products in Russia, while the country’s largest satellite operator, RSCC, will operate the gateway.

The LOI calls for TMSat to acquire a Thuraya communications gateway and satellite earth station from HNS for installation in Dubna, Russia. Until that gateway is ready, TMSat’s service in Russia will operate through Thuraya’s primary gateway in Sharjah, UAE.

With a large footprint over North and Central Africa, the Middle East, and South Asia, Thuraya’s satellite covers an area inhabited by more than 2 billion people. In slightly more than one year of service, Thuraya has amassed 125,000 subscribers that use small, cell phone-sized handsets, with satellite, GSM cellular and GPS (Global Positioning System) functionality.

HNS manufactures the Thuraya phones and supplies the gateway and network management system.

“Russia represents one of the fastest growing economies in the world,” said Dr. Arunas Slekys, vice president and general manager of Russia & NIS business for HNS.

Alexander Duka, RSCC’s general director, added, “Meeting the demand for advanced communications services throughout Russia is a critical imperative of the Ministry of Communications to foster economic growth. To date, one of the obstacles to meeting that demand has been the relative lack of terrestrial telecommunications infrastructure in Russia. For this reason, the ubiquitous nature of satellite communications, combined with the strengths of HNS, Thuraya, TMSat and RSCC, makes this partnership ideal for serving the Russian market.”

TMSat envisions a “tremendous market” for Thuraya satellite-based mobile telephone service in Russia to complement terrestrial GSM cellular service, said TMSat CEO Nikolay Prokhorov. The partnership will yield a “very formidable” and unique service for customers Russia who will have roaming capabilities throughout the vast area in Eurasia served by Thuraya, he added.

Thuraya’s only in-orbit satellite is designed for a life span of 12 to 15 years, and operates in a geo-synchronous orbit 36,000 kilometers above the earth at 44 degrees East. The Thuraya system includes a second satellite that will be launched this year, while a third satellite manufacturing contract has been signed with Boeing [NYSE: BA] to expand the system’s capacity. –Paul Dykewicz

(Arunas Slekys, Hughes Network Systems, 301/428-5502)

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