Broadband provider Avanti Communications has announced the creation of a major strategic partnership with satellite equipment supplier Hughes Network Systems.

In a deal worth around £7.5 million, the latter has purchased capacity and managed services using Avanti's virtual network operator service, which is based on its HYLAS satellite.

As part of the ten-year agreement, Hughes has also committed to selling HYLAS services to its clients, which are predominantly based in sectors including oil and gas and lotteries.

David Williams, Chief Executive of Avanti, said the partnership was of "significant strategic importance to both companies".

"Hughes is overwhelmingly the global leader in satellite networks for enterprise customers and I am certain that they will be a powerful force in helping us to fill HYLAS quickly in Europe," he added.

Last month, Avanti signed up three more companies to sell its broadband services, including Insis System Engineering and EnergoData.

The deals took the company above its target to recruit 50 service providers before the launch of HYLAS.