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High
speed net launched in space
Starband Communications’ satellite launch may not be
quite as revolutionary as Sputnik’s first earth orbit,
but the company can claim to have won its own space race.
On November 6, Starband beat out several well-funded ventures
including Hughes Networks, Teledesic and WildBlue by offering
the first service that provides faster-than-dialup access
both to and from the Internet. The Starband service offers
500 Kbps downstream (from the Internet to the PC) and 150
Kbps upstream according to spokeswoman Sandy Colony. Colony
said Radio Shack is packaging the Starband service with new
Compaq computers for $59.95, but does not offer upgrade products
for PCs.
The service is also being sold as part of a package by resellers
of Echostar’s (DISH) satellite TV service, the Dish Network.
Colony said the service was being beta tested by 10,000 customers
across North America, and consumer installations would begin
this week. Starband is a joint venture from partners Gilat
Satellite Networks, Microsoft (MSFT), EchoStar Communications,
and ING Furman Selz Investments.
Starband has been in a tight race with Hughes Networks to
be the first to provide an operational two-way service. Hughes’
DirecPC service currently offers 400Kbps downstream access,
but requires a dialup modem connection for the upstream. Hughes
will be making the service available by the end of the year,
according to executive vice president Paul Gaske. Gaske said
that DirecPC customers can purchase a second antennae that
will enable PCs to send data out at 128Kbps and eliminate
the need for the dialup connection.
Gaske said the service will be available in the 48 continental
states, but pricing has not been determined. In October, Hughes
and America Online said that the AOL Plus multimedia content
service will be distributed over the DirecPC system. Starband
and Hughes have a window of opportunity in offering services
to customers now while the more ambitious Teledesic and WildBlue
projects are still ramping up, according to Jupiter Communications
senior analyst Joe Laszlo.
Laszlo said Teledesic plans to deliver the Internet via satellite
at broadband speeds of up to 5Mbps downstream and 1Mbps upstream,
but it will not likely go live until 2004. WildBlue (formerly
iSky), is building a 3Mbps service and is targeting an early
2002 launch.
Teledesic, which is heavily funded by Microsoft’s Bill
Gates, Motorola, and telecommunications visionary Craig McCaw,
has struggled to get going. In October Motorola pulled out
of its contract to build the satellites for the venture, which
has seen repeated delays.
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