In testimony be the U.S. House Committee on Government Reform, Hughes Network Systems (HNS) Senior Vice President Michael Cook urged the committed to include satellite broadband technologies in the federal government’s “Networx” procurement vehicle. Currently, only terrestrial broadband is mandated, leaving many government offices and employees underserved due to geographic limitation, HNS said.

Cook gave his testimony before the committee on March 3. According to a press release announcing the hearing, the General Services Administration (GSA) is on the brink of issuing a request-for-proposals on its Networx government-wide voice and data telecommunications program. This program will determine which companies can offer local, long distance and international phone services, wireless services and other telecommunications products to federal agencies. The release noted that federal agencies spent more than $670 million on these services in fiscal 2003. Cook was the only satellite industry person that testified before the committee.

In his written testimony provided to Satellite News, Cook told the committee that its purpose was to “urge that satellite broadband communications technologies be included in the core Networx portfolio of technologies and that satellite services be treated equally with other prominent broadband technologies–DSL and cable.”

Cook also noted in his testimony that broadband is “driving the economy and will do so for the foreseeable future.” But while the Networx program acknowledges the importance of broadband in general, it does not require bidders to offer a satellite broadband option. “In both the Universal and Enterprise Networx component procurements, bidders are required to provide DSL and cable services. However, in both procurement processes, satellite broadband stands as an optional offering.” He said that by not requiring satellite be offered side-by-side with DSL and cable, it does meet the needs of the communications environment today or in the future. “Regardless of claims, hopes or just spin, terrestrial broadband technologies such as DSL are simply not available to every consumer, business or government location throughout the United States.

Not Just A Niche

To reinforce his position, Cook testified that satellite broadband “is not a niche technology, nor an emerging one. It is here, it is real, it is reliable, it is everywhere, it is in wide use in commercial, consumer and government markets, and its use will grow significantly throughout the next several years.”

Statistically, Cook pointed to a few key figures, including the more than 20 million subscribers to direct-to-home satellite television services.

He also noted the more than 250,000 Americans that rely on satellite broadband communications at home. “These customers primarily reside in rural and suburban areas where DSL and cable are not available,” Cook testified. “A further 200,000 business locations rely on satellite broadband for mission critical communications.” He added that HNS transports more than 6.5 million credit card transactions each day across its satellite network. He added that more than 90 percent of all gas stations in all 50 states of virtually every major oil company employ satellite communications at the pump for electronic transaction processing and in the back office for stock control and monitoring applications. Additionally, he said the role satellites have played in providing communications services when natural disasters or other events knocked out terrestrial services.

“The retail industry, the hospitality industry, the automotive industry, the financial services industry and the broadcast industry all rely on satellite broadband. Why should the government be any different?” Cook asked.

“I know that GSA does procure satellite services under a separate contract vehicle,” Cook continued. “My point, however, is that no such separate contract exists for either DSL or cable broadband. If Networx truly is to embody the government’s communications requirements and hence infrastructure, the inclusion of satellite broadband on equal footing with DSL and cable will provide an improved and more comprehensive initiative. I hope the final Networx RFP reflects this.”

–Gregory Twachtman (Judy Blake, HNS, 301/601-7330)