Hughes aims for 30% of Brazil sales to come from private networks

Satellite telecoms provider Hughes expects to have about a third of its revenues in Brazil coming from private network projects, and not necessarily using satellite as the core technology, within up to five years.

Hughes' main focus in the segment is companies from the oil and gas and utilities verticals.

"We expect that in the next three to five years, the provision of private networks will represent a significant portion – more than 30% – of our revenues in Brazil. That's our vision," country manager Rafael Guimarães told BNamericas.

The focus on private networks is part of an intensification of the company's strategy toward the B2B segment, compared to serving the end consumer in the B2B pillar. 

At present, Maryland-based Hughes has two private network projects in Brazil.

One of them, announced last April, consists of covering the plants of natural gas operator Eneva in the cities of Santo Antônio dos Lopes (Maranhão state) and Silves (Amazonas) with 4G technology.

Hughes has not made public the name of the other client but, according to Guimarães, it is a major power distribution utility.

Integrator

Hughes' business model for the private network segment in Brazil involves obtaining the license from regulator Anatel on behalf of the client, installing the equipment on the client's premises and managing the network.

The 'owner' of this network is the client, which has dedicated infrastructure, but management and operations are carried out by Hughes. No mobile operator is involved.

It is a model common to other integrators that have started to focus on the segment in the country, and different from private 4G or 5G network projects contracted directly by companies with mobile operators that hold the relevant public spectrum.

According to Guimarães, Hughes' positioning as an integrator and developer of these networks, and looking beyond satellite itself, is relatively recent.

"The vision that private network could be something important for us began in 2022. We began to seek to understand the ecosystem, map suppliers, business models and hire specialized professionals. From 2024 onwards, we started to reap the fruits," he said.

Hughes is currently prospecting and talking to other companies and the expectation is that at least one more project will be announced this year.