Hubs are critical elements of telecommunication and transportation networks because they play a vital role in mass traffic movement. The design of more reliable networks in hub-and-spoke systems is a critical issue because current networks, particularly many commercial Internet backbones, are quite vulnerable. In hub-and-spoke-type topologies, any malfunction at a hub may cause degradation of the entire network's ability to transfer flows. This article presents a new hub location problem, termed the reliable p-hub location problem, which focuses on maximizing network performance in terms of reliability by locating hubs for delivering flows among city nodes. Two submodels, the p-hub maximum reliability model and the p-hub mandatory dispersion model, are formulated. Based on hypothetical and empirical analyses using telecommunication networks in the United States, the relationship between network performance and hub facility locations is explored. The results from these models could give useful insights into telecommunication network design.