Friday, August 10, 2007
Consumer, Mobile Satellite Drive Growth for HNS
Though its legacy enterprise networking business still generates the most revenue, consumer broadband access and mobile satellite provided the growth for Hughes Network Systems in the most recent quarter, says. Pradman Kaul,HNS CEO.
“The consumer, small and medium business and mobile satellite businesses continued to be the key contributors to our revenue growth,” says Kaul. Over 30,000 new broadband access subscribers were added in the second quarter of 2007, growing the HughesNet customer base to 353,000 at the end of June. That's year-over-year growth of 18 percent.
Revenue from our mobile satellite business showed strong growth of 88 percent
to $35 million in the second quarter of 2007 over the second quarter of 2006.
HNS does not report average revenue per unit for either its enterprise or consumer users. So you might not think 353,000 broadband access customers is a particularly big deal. But look at it this way. Assume that ARPU for a single enterprise customer site is $100 a month or so.
Then assume that each of the consumer, small office or small business sites each represents the same ARPU, as some analysts have suggested. That's a very healthy recurring revenue stream, by anybody's standards, for a consumer Internet access product.
And extremely rare in the communications business. How many other companies do you know that can claim the ARPU for a consumer access line is the same as the ARPU for an enterprise line? I know of no others.
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