SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549-1004
FORM 8-K
CURRENT REPORT PURSUANT TO SECTION 13 OF
THE SECURITIES EXCHANGE ACT OF 1934
Date of Report
(Date of earliest event reported) April 27, 2000
----------------
HUGHES ELECTRONICS CORPORATION
-----------------------------------------------------
(Exact name of registrant as specified in its charter)
STATE OF DELAWARE 0-26035 52-1106564
- ---------------------------- ----------------------- -------------------
(State or other jurisdiction (Commission (I.R.S. Employer
of incorporation or organization) File Number) Identification No.)
200 North Sepulveda Boulevard
El Segundo, California 90245
-------------------------------
(310) 662-9985
----------------
(Address, including zip code, and telephone number,
including area code, of registrants' principal executive office)
- 1 -
ITEM 5. OTHER EVENTS
On April 27, 2000, a news release was issued by Hughes Electronics
Corporation's subsidiary, Hughes Network Systems, announcing upcoming Two-Way
DirecPC Satellite Internet Access. The release is as follows:
Hughes Network Systems Announces Upcoming Two-Way DirecPC
Satellite Internet Access
DirecPC Two-Way Service Also to be Offered as DIRECTV Broadband
Satellite Service
Germantown, MD, USA, 27 April 2000 -- Continuing its theme of Broadband
Everywhere(R) the company that pioneered broadband Internet service via
satellite today announced plans to market a two-way broadband satellite service
to consumers. Hughes Network Systems (HNS), a unit of Hughes Electronics
Corporation, will add two-way capabilities to its nationwide high-speed
satellite Internet service, DirecPC(R), early in the fourth quarter of this
year. The new service will be marketed through the more than 26,000 retail and
distribution outlets currently carrying Hughes products and services such as
DIRECTV services and HNS receivers. Offering always-on capability, the new
two-way high-speed satellite service allows consumers to completely bypass the
dial-up telephone network and land-based choke points on the Internet.
"DirecPC makes truly universal broadband access a reality for consumers and
enterprises alike," said Pradman Kaul, chairman and CEO, HNS. "With the launch
of the new two way DirecPC Service consumers throughout the United States will
now have access to broadband internet services. We are also deploying this
technology to customers throughout the world. A recent example is S Kumars.com,
an Internet kiosk operator that has purchased 50,000 DirecPC terminals for use
throughout India, making this the largest single purchase of two-way satellite
terminals ever. With broadband satellite services we can deliver applications to
suit the needs of the Web-centric user everywhere."
"While other companies may have announced plans to launch two-way satellite
services for the consumer, only HNS has the track record. Through DirecPC
services, HNS has years of experience meeting the needs of consumers, SOHOs, and
enterprises, " said Paul Gaske, executive vice president of the Consumer
Division at HNS. "In addition, HNS has unrivalled experience in the mass
manufacture of consumer products having built four million DIRECTV System
receivers and DirecPC terminals. With established distribution channels, and
customer support services; as well as Internet partners such as America Online
we will continue to lead the broadband satellite Internet services market by
providing consumers with innovative new products and services."
Consumer and Enterprise Offerings
For consumers the upstream speed for the new service is anticipated to be
between 128Kbps and 256kbps and the downstream will be at speeds over 40Mbps,
supporting bursts up to 400 Kbps for each user. The new two way terminal will
support small office/home office (SOHO) and enterprise applications such as IP
multicasting and content delivery. Two-way DirecPC will also be offered with a
DirecDuo antenna system, allowing consumers to receive both DirecPC and DIRECTV
on the same antenna.
The company expects that the new two-way services will be competitive with cable
and DSL broadband services, and will announce pricing, availability and service
plans later this year.
- 2 -
The two-way DirecPC product will require an antenna to enable transmission to
the DirecPC satellites and will use an external device connected via a USB port
to the PC. The two-way version of DirecPC will operate on the current
medium-power Ku-band satellites operated by PanAmSat, which is 81% owned by
Hughes Electronics. A program enabling existing DirecPC subscribers to upgrade
to two-way by adding the additional equipment will be announced later this year.
DIRECTV to Sell Broadband
The new two-way DirecPC will also be offered by DIRECTV as an integrated
broadband service in conjunction with its industry-leading entertainment
services. DIRECTV will now be able to enhance its popular entertainment
programming packages with the addition of broadband services through DirecPC.
Using the DirecDuo antenna, consumers will receive the new DirecPC service
delivered to their desktop computers while simultaneously receiving DIRECTV
service through a set-top box to their televisions.
"Adding the two-way DirecPC capability to the DIRECTV(R) service is a direct
response to consumer demand for integrated entertainment and information
products and services," said Eddy W. Hartenstein, corporate senior executive
vice president, Hughes Consumer Sector. "Our goal is to provide the consumer
with the most convenient and best in-home entertainment and information services
available. Initially, we will do this by offering two-way broadband Internet
services delivered via satellite modem in combination with DIRECTV services
delivered via set-top box -- both using the DirecDuo single antenna. This will
enable our customers to add broadband services while continuing to use their
existing set-top boxes to receive their DIRECTV service. We believe this will
appeal to many of our 8.3 million existing customers, and will be an incentive
for new customers."
Spaceway Plans
"Our new two-way service will be the next step toward DirecPC products and
services that will operate on the Spaceway satellite platform; an advanced
generation of ultrahigh-speed satellites in the Ka band to be deployed in 2003,"
noted Gaske.
AOL Plans
The two-way product and service will also offer new capabilities to support the
announced AOL Plus Powered by DirecPC service. "We're very pleased to work with
Hughes to bring this enhanced platform to AOL members using satellite
technology, enabling them to enjoy the benefits of AOL Plus enhanced multimedia
content and features via DirecPC," said Barry Schuler, President, AOL
Interactive Services Group. "This will be another extension of our AOL Anywhere
strategy, making our features and services available across a wide range of
devices and platforms."
About DIRECTV
DIRECTV is the world's largest direct-to-home provider of digital entertainment
programming. DIRECTV has more than 8.3 million customers worldwide, including
customers of PRIMESTAR By DIRECTV, and in 1999 acquired a record 1.6 million net
new customers in the United States, a 39-percent increase over the previous
record year of 1998. In the first quarter of 2000, DIRECTV acquired 405,000 net
new customers - a new record that represents a 33-percent increase in customer
acquisition over the previous record first quarter in 1999.
- 3 -
About Hughes Network Systems
A world leader in providing wireless broadband solutions for businesses and
consumers, Hughes Network Systems (HNS) is a unit of Hughes Electronics. With
its award-winning DirecPC suite of products and services, its new DirecWay(TM)
service for enterprises, and its AIReach(TM) Broadband products, HNS enables
high-speed digital services and convergence products based on satellite and
wireless technologies. Through its alliance with America Online, Inc. and
DIRECTV, HNS has established a leadership position in providing enhanced TV and
interactive services in addition to its role as a leading manufacturer of
set-top receivers. Headquartered in Germantown, MD, HNS is the global VSAT
market leader with sales of over 300,000 VSAT terminals and has sales and
support offices worldwide. For more information, please visit the Web site at
www.hns.com.
The earnings of Hughes Electronics, a unit of General Motors Corporation, are
used to calculate the earnings per share attributable to the General Motors
Class H common stock (NYSE:GMH).
Hughes Network Systems: The Broadband Company Bringing You Broadband
Everywhere(TM)
# # #
DIRECTV and DIRECTV PLUS are trademarks of DIRECTV, Inc., a unit of Hughes
Electronics Corporation. DirecDuo, and DirecPC are trademarks of Hughes Network
Systems, a unit of Hughes Electronics Corporation. All other trademarks are the
properties of their respective owners.
From 1:00 p.m. to 2:00 p.m. EST there will be a call-in forum for media
wishing to ask questions relating to this announcement. Please register with the
contacts listed below, or call 1-800-700-7860 during the conference call in
time. (If you are calling from outside the U.S. or Canada, please call
612-332-0418.)
* * * * * *
SIGNATURE
Pursuant to the requirements of the Securities Exchange Act of 1934, the
registrant has duly caused this report to be signed on its behalf by the
undersigned hereunto duly authorized.
HUGHES ELECTRONICS CORPORATION
------------------------------
(Registrant)
By
Date April 27, 2000 /s/Roxanne S. Austin
---------------- -----------------------------------
(Roxanne S. Austin,
Chief Financial Officer)
- 4 -
