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Issue #1  -  January 11-17, 2002

News

 

Steve Perlman’s Moxi Media Center™ Unveiled at CES

EchoStar’s DishPVR 721 wins Best of Show at the 2002 Consumer Electronics Show

HNS’ DIRECWAY® Internet Service Passes 100,000 Subscriber Mark

StarBand Finishes 2001 With Close to 40,000 Subscribers
 

Industry

Experts Discuss Keys to Satellite Competitiveness at SISA 2001
 
Alcatel Quietly Confirms What's Already Known - SkyBridge Plans Frozen
 
A look at satellite-based Internet services from Network Magazine
 

Financial

SES Plans to Raise $500m and Add NYSE Listing

Helius Extends Satellite Data Solutions Through Acquisition of SteamRider
 

Upcoming
Events

PTC2002: Next Generation Communications: Making IT Work
 

Next Week
Coming Next Week:  Roger Rusch
 

SKYBroadband: News News          

Hughes Network Systems Adds First DIRECWAY Partner in Canada

LinCsat Communications Inc. and Hughes Network Systems (HNS), today announced an agreement to offer DIRECWAY(R) high-speed Internet broadband services to government, commercial, small office/home office (SOHO), and residential customers in Canada.

"LinCsat Powered by DIRECWAY" will be launched in Canada in the first quarter of 2002. The service will be marketed by LinCsat directly, and through a network of value-added resellers and independent retailers serving rural and underserved communities nationwide. "For the first time communities, offices and teleworkers in Canada, no matter how remote, will have access to high-speed Internet connectivity at affordable prices using the LinCsat Powered by DIRECWAY solution," said Brian Neill, chief executive officer at LinCsat. "We are very excited to partner with Hughes and offer a broadband alternative to the nearly three million Canadian households and one million businesses that are underserved by the major telephone, cable and Internet service companies. LinCsat is exclusively focused on these markets."

"As the leader in broadband satellite services, we are excited to bring DIRECWAY's capabilities to LinCsat," said Dave Zatloukal, vice president of DIRECWAY services for HNS. "This relationship in Canada furthers our global strategy to partner with selected "Powered by DIRECWAY" service providers."

"After an extensive review of various satellite service alternatives, it became clear to us that existing "out-of-the-box" solutions wouldn't allow us to address the cultural, linguistic and security requirements of the Canadian market," said David Lewis, president and chief operating officer at LinCsat. "Our unique arrangement with Hughes for the "LinCsat Powered by DIRECWAY" service allows us the flexibility to create a truly pan-Canadian service."

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Steve Perlman’s Moxi Media Center™ Unveiled at CES

Steve Perlman, founder (and later seller to Microsoft) of WebTV, began his bid for set-top rights at CES 2002 by unveiling the Moxi Media Center™ or Moxi MC™. The silvery-gray box will not only perform as a set-top box supporting up to 4 TV’s, it will play your DVD’s and CD’s, store music and video files on a minimum 80GB drive, perform PVR functions, and provide access to your computer, the Internet and IP phone service. Initial investors included EchoStar and AOL. EchoStar will be the first to offer the new home entertainment device later this year.

MSNBC     ·     BBC     ·    Slashdot     ·    ABC News     ·    CNET

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EchoStar’s DishPVR 721 wins Best of Show at the 2002 Consumer Electronics Show

EchoStar’s DishPVR 721 satellite TV system took top honors as the Best of Show in the Innovations Design and Engineering showcase in the Satellite Systems product category at the 2002 Consumer Electronics Show.

EchoStar Communications Corp.

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HNS’ DIRECWAY® Internet Service Passes 100,000 Subscriber Mark

Hughes Network Systems (HNS) announced today that it has surpassed 100,000 subscribers for its DIRECWAY® broadband satellite service.

"This is yet another significant milestone that clearly demonstrates HNS' leadership in the satellite industry. There is a considerable broadband market out there for which DIRECWAY is clearly a winning solution," said Pradman Kaul, chairman and CEO of HNS.

"We are very optimistic about the future and the continued success of DIRECWAY. With all of the business and marketing alliances we have secured, we see enormous potential for growth of DIRECWAY services spanning all markets -- enterprise, small business and consumer alike."

Hughes Network Systems

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StarBand Finishes 2001 With Close to 40,000 Subscribers

Two-way satellite Internet provider marks first full year of operations with nearly 40,000 consumer subscribers in all 50 states.

With the completion of its first full year of operations, StarBand has brought the speed and power of the Internet to consumers virtually everywhere across the United States. From members of the Navajo Nation tribe located on the floor of the Grand Canyon to the home of Washington DC-area resident Rukhsana Bader and from Alaskan college community centers located above the Arctic Circle to Hawaiian resident Mike Smith of Hakalau, Hawaii, who lives just three miles from the foothills of the Mauna Kea volcano, StarBand high-speed satellite Internet service is bringing the high-tech, high-speed world of Internet communications to U.S. consumers virtually anywhere they live.

"No other two-way satellite Internet company has reached as many customers in all 50 states - located in big cities and rural prairies -- in such a short time," said StarBand Co-Chairman and Chief Executive Officer Zur Feldman. "Despite the promises of other Internet providers, tens of millions of households still do not have access to cable modems or Digital Subscriber Line (DSL) technology. StarBand's current service territory encompasses households virtually everywhere in all 50 states. By any measure, StarBand is achieving significant milestones and looking forward to achieving more in 2002."

Future StarBand expansion plans include such markets as Puerto Rico, Mexico, Canada and the U.S. Virgin Islands.

Product Growth, Company Growth

Earlier this year, the company launched the StarBand Model 360(TM), its third-generation satellite modem featuring a sleeker, consumer-friendly design that provides greater connectivity options and the latest StarBand Internet acceleration technology that maximizes the online experience of StarBand subscribers.

The StarBand Model 360 satellite modem also ushered in the company's move to wholesale distribution.

The wholesale business model was implemented to speed StarBand's growth nationwide by decreasing its operational and infrastructure costs. The move also has increased customer satisfaction by enabling StarBand to focus on its growing subscriber base. As a result of the change, StarBand has formed partnerships with wholesale providers to deliver the StarBand service to consumers.

StarBand partners include EchoStar's DISH Network and its retailers, providing the largest distribution channel for StarBand, and the National Rural Telecommunications Cooperative (NRTC), a global facilities-based full service communications provider with an extensive U.S. agent channel.

"The last 14 months have been amazing for StarBand," said StarBand President and Chief Marketing Officer David Trachtenberg. "We pioneered a new category of high-speed Internet access, we were the first-to-market with a two-way satellite Internet service and we delivered Internet service to places where consumers never dreamed they could be part of the Internet revolution."

"What was once out of reach - a college education - is now firmly in our grasp thanks to StarBand Internet service," said Havasupi Head Start Program leader Sally Tilousi. "The impact technology such as StarBand satellite Internet has made on distance learning will be seen for many years to come as our students go off to college."

Future product plans include a StarBand commercial-grade Small Office service that will enable PC networking and commercial installations.

"StarBand intends to continue bringing leadership products and services, and our Small Office service will be just the start in early 2002," said Trachtenberg.

Capital

In addition to launching new products and services and expanding its customer base, StarBand also raised new capital. The company received an additional $ 50 million investment from EchoStar Communications, a 20-year leader in satellite TV and the parent company of DISH Network(TM), the nation's fastest growing satellite TV provider.

The agreement also advances EchoStar's strategy to offer a complete bundled package of Internet access, TV programming and interactive television services to its more than 6.4 million U.S. DISH Network customers. Recognized Industry Leader

In early fall, StarBand was nominated by one of its customers and named the "Most Innovative Internet Service Provider" by Interactive Week and The Net Economy. The award recognized StarBand for its ability to provide high-speed Internet access "to a mass audience much of which is unable to get cable modem or DSL."

"For consumers, StarBand means Internet service without the need for cable-ready neighborhoods, proximity to central phone offices for DSL or even telephone wire for another phone line," added Trachtenberg. "We have virtually everyone's answer to an Internet connection. As long as a consumer has a clear view to the southern sky - and nine out of 10 homes do - StarBand is available."

StarBand Network

StarBand delivers its two-way satellite Internet service by installing small antennas on roofs or walls of customer homes or on poles. Professional StarBand installation typically takes approximately four hours. The StarBand Model 360 high-speed modem is connected to a customer's computer.

When a customer accesses StarBand Internet service, the signal travels over inside wiring to the rooftop antenna. The antenna then relays the data signals to a satellite. The satellite sends the signal to the StarBand Network Operations Center where it gathers, aggregates and routes the signals to deliver data from the Internet to the customer.

StarBand service is supported by a skilled communications workforce of 250 employees located at the company's McLean, Virginia headquarters and Marietta, Georgia Network Operations Center and Customer Care Center.

Summing up her StarBand service experience, StarBand customer Rukhsana Bader of Rockville, Maryland located just outside Washington, DC, said, "It's a lot faster, it's more convenient, and our whole family loves it."

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SKYBroadband: IndustryIndustry          

 

Broadband Needs a Push-Start

The chicken-and-egg analogy is often used to describe economic situations where a new market is developing and demand is a function of supply and supply a function of demand. Consumer broadband is a perfect example. The Washington Post's Jonathan Krim looks at the benefits of broadband usage as an economic catalyst and at the barriers to broadband adoption.

Washington Post

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Experts Discuss Keys to Satellite Competitiveness at SISA 2001

In the shadow of millions of @Home users losing their home pages and high-speed cable connections, a group of experts met in San Diego from December 5-7, for their annual Satellite Internet Services and Applications conference organized by ACT Conferences. Excite@Home's interruptions and the difficulties of data CLEC's over the past year, underscore both the opportunities and the risks for satellite providers looking to make headway in the residential and SOHO Internet access markets.

During the panel discussion on two-way services, experts discussed these opportunities from three perspectives: regulatory, technology and business issues.

Several key trends and market directions emerged:

  • Two-way high speed Internet via satellites is establishing itself as a viable alternative in the U.S. The North American high speed Internet market is expected to rise to 23 million households in 2007. While cable access economics is hard to beat, there is still a sizeable opportunity for satellite-based providers.
  • A large number of U.S. Ka-band licensees face critical start-of-construction or launch milestones in 2002 and other applications for Ka-band non-geostationary and V-band satellites may be approved by the FCC in 2002.
  • Although satellite Internet is often considered a natural extension of DBS, the system factors are quite different. While DBS satellite cost is independent of audience size, the Internet services satellite cost (and complexity) is directly tied to the subscriber count or capacity of the bird. In addition, the economics of providing two-way services improves rapidly as system capacity increases.
  • Complex trade-offs exist between FSS Ku, bent-pipe Ka and switched Ka-band systems. Full-mesh connectivity on-board processing satellites appears necessary only for large multi-site enterprises. Hybrid Ku/Ka and Ka/Ka band bent pipe architectures can provide the needed capacity and flexibility smaller enterprises and consumers seek.
  • Newer techniques are providing greater efficiencies that will offset initial CPE expense by reducing recurring space segment costs. Customer Premise Equipment (CPE) cost is a major factor in determining market penetration for two-way Internet services via satellites. CPE cost is very sensitive to manufacturing volume, and adoption of uniform standards for high capacity satellites can bring the costs down to levels approaching those of DSL and cable.

A market segment ripe for exploitation by Internet satellites are the SOHOs and the SMEs both at the national and international levels. As this segment grows, it will also benefit the consumer market through lower CPE costs. A key to penetrating this market is establishing effective distribution channels to reach the underserved segments of those markets.

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Alcatel Quietly Confirms What's Already Known - SkyBridge Plans Frozen

Alcatel, the near-50% owner of broadband satellite provider SkyBridge, will wait until market conditions improve before resuming the development of its planned 80-satellite LEO broadband constellation. Plans to utilize existing GEO satellites are also being delayed.

Space and Tech     ·     Newsbytes      ·     Space and Tech

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A look at satellite-based Internet services from Network Magazine:

Network Magazine

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SKYBroadband: FinancesFinancial          

 

SES Plans to Raise $500m and Add NYSE Listing

After restructuring its purchase of GE Americom and withdrawing its IPO plans last year, the world's largest satellite operator now plans a secondary offering, raising up to $500m and gaining a listing on the NYSE. The additional funds could help with SES GLobal's plan to become a major provider of interactive broadband and internet services.

Forbes

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Helius Extends Satellite Data Solutions Through Acquisition of SteamRider (2netFX)

Helius, Inc., a developer and provider of broadband satellite applications for IP multicasting, content distribution, streaming media and interactive Internet, announced it has acquired StreamRider, previously known as 2netFX. The acquisition extends the Helius offerings from the router to the desktop.

"The acquisition of StreamRider, and its technologies are key components in our business strategy to expand Helius' role in multimedia services," says Myron Mosbarger, President and CEO of Helius. "It adds new content streaming products and broadens our offering, allowing us to deliver even more complete solutions for our customers. It will allow us to provide both front and back-end solutions for broadband service providers and their customers."

The StreamRider client software is an application that allows users to tune live to a multicast or unicast video stream and view it on a player application at their desktop. Stored files can be viewed at any time. Helius will both package and sell separately the client viewer, StreamRider, with their satellite router and their multicast file distribution product, MediaWrite.

Helius will use the existing client viewer and further develop it to run as a plug-in to the most popular client media applications including Microsoft MediaPlayer and Real Networks RealPlayer. Helius will also continue the development of StreamRider's video server by porting it to additional operating systems.

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SKYBroadband: Upcoming EventsUpcoming Events          

 

PTC2002: Next Generation Communications: Making IT Work

Jan. 13 - 17, 2002
Honolulu, Hawaii
Organized by the Pacific Telecommunications Council
http://www.ptc.org/ptc2002

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Coming Next Week:  Roger Rusch

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