Avanti Communications Group plc (AIM: AVN) announces a contract win and major strategic partnership with Hughes Network Systems. Hughes has purchased capacity and managed services using Avanti’s Virtual Network Operator service on HYLAS over a ten year period to an initial value of 7.5 million pounds in order to continue to grow its own established European networks business with clients in sectors such as oil and gas and lotteries. 

Hughes has also committed to sell HYLAS services, and give Avanti access to Hughes’ extensive distribution channels in Europe — which currently account for more than 35,000 customer installations. Hughes has a global market share in the provision of satellite networks to enterprise customers of more than 50 percent.  The Company operates its own Ka-band satellite in the USA, but leases capacity elsewhere in the World.  HYLAS will enable Hughes to extend its competitive advantage in Europe. Avanti has purchased equipment from Hughes for use at the HYLAS network control center, in line with capital budgets.  Avanti has also secured a five year framework supply agreement enabling its 52 VNO customers around Europe to purchase Hughes’ customer premises equipment (dishes and modems) at a market beating price. This market leading equipment enables end users to operate internet services at speeds of up to 10Mbps, and the attractive pricing enables Avanti’s VNOs to provide service with a minimal customer installation charge.