Close
  • Latest News
  • Artificial Intelligence
  • Big Data and Analytics
  • Cloud
  • Networking
  • Cybersecurity
  • Applications
  • IT Management
  • Storage
  • Sponsored
  • Mobile
  • Small Business
  • Development
  • Database
  • Servers
  • Android
  • Apple
  • Innovation
  • Blogs
  • PC Hardware
  • Reviews
  • Search Engines
  • Virtualization
Read Down
Sign in
Close
Welcome!Log into your account
Forgot your password?
Read Down
Password recovery
Recover your password
Close
Search
Logo
Logo
  • Latest News
  • Artificial Intelligence
  • Big Data and Analytics
  • Cloud
  • Networking
  • Cybersecurity
  • Applications
  • IT Management
  • Storage
  • Sponsored
  • Mobile
  • Small Business
  • Development
  • Database
  • Servers
  • Android
  • Apple
  • Innovation
  • Blogs
  • PC Hardware
  • Reviews
  • Search Engines
  • Virtualization
More
    Home IT Management
    • IT Management

    Satellite Merger Orbits Regulators

    By
    eWEEK EDITORS
    -
    November 5, 2001
    Share
    Facebook
    Twitter
    Linkedin

      Hidden in the hoopla over the proposed merger of North Americas two satellite broadcasters is a possible pitch that might get the deal past regulators: Combining EchoStar Communications DISH Network with General Motors/Hughes Electronics DirecTV will add momentum to broadband Internet services.

      Instead of focusing on the $25.8 billion deal to create the second-largest pay-TV provider, the two companies should position themselves as rivals to the regional Bells for broadband customers and a service provider in the markets the Bells shun, analysts say. That pitch could resonate with the Federal Communications Commission, which is charged with promoting rural access.

      “Rolling out landline broadband in some of these markets will take time,” said Nihar Shah, senior analyst at satellite and space consulting firm Futron in Bethesda, Md. “These guys can get it to them in a week.”

      Futron research shows that the number of small businesses and home offices demanding satellite service will grow about 600 percent over the next five years. Some of those businesses will be farms and other rural businesses in need of high-speed connections.

      To date, EchoStar and Hughes have barely scratched the surface of broadband Internet service, with offerings such as EchoStars Wild Blue and Hughes Spaceway and DirecPC. With the launch of Hughes satellites in 2003, higher-speed Ka-band spectrum will be available and can be scaled to meet hourly changes in demand through a technology known as spot beaming.

      “Importantly, these services would be available in rural areas otherwise far from the information superhighway at rates which the company is prepared to assure regulators would be competitive,” said EchoStar Chairman Charlie Ergen.

      Through synergies, the two companies think they can begin tapping the business and consumer broadband markets in 100 percent of the areas they serve.

      Such ambitions might seem hallucinatory when viewed through the lens of experience. Major space players, including Liberty Media, Lockheed Martin, TRW and a unit of Telecom Italia, last week were preparing to scrap their $3.7 billion venture, called Astrolink. The project, designed to deliver space-based broadband Internet access to corporate customers, hit the rocks due to lack of financing.

      But Futrons Shah said EchoStar-Hughes has better prospects for leveraging its satellites because of an installed base of more than 16 million video subscribers.

      Hughes fleet of satellites already includes commercial applications for private business networks and global data broadcasting. PanAmSat, one of three Hughes subsidiaries, is the worlds leading provider of commercial satellite services and operates 21 satellites. Hughes owns 81 percent of PanAmSat.

      Should the merger pass scrutiny, which many analysts doubt, the new company would retain the EchoStar name, but use the DirecTV brand for consumer offerings; be based in Littleton, Colo.; and employ Ergen as chairman and chief executive.

      On Nov.1, FCC Chairman Michael Powell announced that an inter-agency team of FCC officials will review whether the deal is in the public interest. “Given the significant concentration that would result from this transaction, it will be rigorously scrutinized by this team and the Commission,” Powell said.

      eWEEK EDITORS
      eWeek editors publish top thought leaders and leading experts in emerging technology across a wide variety of Enterprise B2B sectors. Our focus is providing actionable information for today’s technology decision makers.
      Get the Free Newsletter!
      Subscribe to Daily Tech Insider for top news, trends & analysis
      This email address is invalid.
      Get the Free Newsletter!
      Subscribe to Daily Tech Insider for top news, trends & analysis
      This email address is invalid.

      MOST POPULAR ARTICLES

      Latest News

      Zeus Kerravala on Networking: Multicloud, 5G, and...

      James Maguire - December 16, 2022 0
      I spoke with Zeus Kerravala, industry analyst at ZK Research, about the rapid changes in enterprise networking, as tech advances and digital transformation prompt...
      Read more
      Applications

      Datadog President Amit Agarwal on Trends in...

      James Maguire - November 11, 2022 0
      I spoke with Amit Agarwal, President of Datadog, about infrastructure observability, from current trends to key challenges to the future of this rapidly growing...
      Read more
      IT Management

      Intuit’s Nhung Ho on AI for the...

      James Maguire - May 13, 2022 0
      I spoke with Nhung Ho, Vice President of AI at Intuit, about adoption of AI in the small and medium-sized business market, and how...
      Read more
      Applications

      Kyndryl’s Nicolas Sekkaki on Handling AI and...

      James Maguire - November 9, 2022 0
      I spoke with Nicolas Sekkaki, Group Practice Leader for Applications, Data and AI at Kyndryl, about how companies can boost both their AI and...
      Read more
      Cloud

      IGEL CEO Jed Ayres on Edge and...

      James Maguire - June 14, 2022 0
      I spoke with Jed Ayres, CEO of IGEL, about the endpoint sector, and an open source OS for the cloud; we also spoke about...
      Read more
      Logo

      eWeek has the latest technology news and analysis, buying guides, and product reviews for IT professionals and technology buyers. The site’s focus is on innovative solutions and covering in-depth technical content. eWeek stays on the cutting edge of technology news and IT trends through interviews and expert analysis. Gain insight from top innovators and thought leaders in the fields of IT, business, enterprise software, startups, and more.

      Facebook
      Linkedin
      RSS
      Twitter
      Youtube

      Advertisers

      Advertise with TechnologyAdvice on eWeek and our other IT-focused platforms.

      Advertise with Us

      Menu

      • About eWeek
      • Subscribe to our Newsletter
      • Latest News

      Our Brands

      • Privacy Policy
      • Terms
      • About
      • Contact
      • Advertise
      • Sitemap
      • California – Do Not Sell My Information

      Property of TechnologyAdvice.
      © 2022 TechnologyAdvice. All Rights Reserved

      Advertiser Disclosure: Some of the products that appear on this site are from companies from which TechnologyAdvice receives compensation. This compensation may impact how and where products appear on this site including, for example, the order in which they appear. TechnologyAdvice does not include all companies or all types of products available in the marketplace.

      ×