Thuraya and Hughes sign landmark US$ 1 billion deal
United Arab Emirates
11 September 1997
Thuraya Satellite Telecommunications Company and the Hughes Space and Communications International, Inc (HSCI)have signed a contract for the creation of a satellite-based mobile phone system that will serve Europe, North and Central Africa, the Middle East, Central Asia and the Indian Subcontinent.
Mr. Mohammad Hassan Omran Chairman of Thuraya and Mr. Michael J. Houterman HSCI President signed the US $ 1 billion contract at the Emirates Telecommunications Corporation (Etisalat) headquarters. Also present at the ceremony were Thuraya’s Project Manager Mr. Yousuf Al Sayed , Marketing Manager Mr. Jamal Al Jarwan, senior executives from Thuraya, HSCI, and a number of invited guests.
The Thuraya Mobile Satellite System ( MSS), with a coverage area of 1.8 billion, represents the largest satellite telecommunications project in the region. The contract is for a turnkey system of two GEO mobile body-stabilized satellites, launch services for the first satellite, ground facilities, as well as a quarter of a million handheld telephones. Besides the ground spare, which will be launched at a later date, there are also provisions in the contract for a third satellite. Thuraya will select the launch vehicles later.
The delivery of the first satellite in 31 months will enable Thuraya to begin operation in the beginning of year 2001, providing services to its footprint area of 99 nations.
Thuraya’s satellite will operate in geostationary orbit, transmitting and receiving calls through a single 12.25 meter aperture reflector. Its on-board digital signal processing will route the calls directly from one handheld unit to another, or through a terrestrial network.
Speaking on the occasion, Mr. Mohammad Hassan Omran, Chairman of Thuraya said: "Today, we have successfully concluded our final contract agreement with Hughes Space Communications International Inc of Los Angeles, USA, to develop, construct and operate Thuraya Mobile Satellite System.
"Today is considered the beginning for the Thuraya journey to orbit. The Thuraya satellite is scheduled for launch in the last quarter of 2000, and full commercial launch will be in the beginning of 2001. Thuraya’s business objective is to extend mobile coverage and service to users from the Indian subcontinent crossing Central Asia, the Middle East, Eastern Europe including Turkey to North Africa".
HSCI President Mr. Michael J. Houterman said: "Thuraya will enable business people to stay in touch while traveling in this region, as well as extend the most modern services to areas that lack telephones now. This project also establishes Hughes as not only the world’s leading supplier of satellites, but also of entire space-based communications systems."
The satellites will employ advanced digital processing to create many spot beams that can be directed where needed, even after the satellite is placed in orbit, to provide coverage to urban areas well as remote regions.
Thuraya’s terminals will offer dual-mode facilities that will allow it to be compatible to mobile telephone services. As part of its strategy, Thuraya will work in the forthcoming period with local operators within its coverage area to sign service provider agreements.
In a statement issued on the occasion of the contract signing, Thuraya’s Board of Directors expressed their appreciation to Aerospatiale, Lockheed Martin and Alcatel for bidding for the Thuraya contract.
The board also recognized the effort made by the Thuraya project team, the legal and technical teams, as well as ETISALAT and ARABSAT staff. They also extended their thanks to consultants Detecon, Ashurst Morris Crisp Legal Consultant , Merrill Lynch and Booz, Allen & Hamilton Business Consultants, for lending their expertise.