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Hughes Gets $1-Billion Pact From NextWave

November 12, 1996|Times Staff and Wire Reports

Hughes Network Systems Inc. said it received a contract to supply up to $1 billion of equipment over six years for NextWave Telecom Inc.'s personal communications network. Personal communications services, or PCS, use digital technology to improve call quality and privacy over current cellular telephones. Under the agreement, Los Angeles-based Hughes, a unit of General Motors Corp., will buy $50 million worth of stock in NextWave. Hughes has also committed to finance the purchase of $245 million of the equipment, with an option to finance and supply an additional $755 million of PCS gear. Privately held San Diego-based NextWave recently spent $4.2 billion to acquire 63 licenses for PCS networks covering 29 of the largest markets in the U.S. Those licenses are now pending before the Federal Communications Commission.

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