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DirecTV's Billion Dollar Broadband Plan
National Wimax ISP?

Rupert Murdoch's billion dollar broadband plan with DirecTV may not be revealed until much later this year, Reuters reports. "We've been looking at it pretty hard," says DirecTV CFO Mike Palcovic. "I'm pretty bullish on the expectation that we'll get something done," he says, noting they've already missed a few Murdoch deadlines. That "something" is believed to most likely be the creation of a national DirecTV branded Wimax ISP, perhaps in a partnership with Dish Network.

The move would allow the satellite providers to enter the triple play business directly, with Murdoch media content (IGN, MySpace, etc.) as a centerpiece. DirecTV also plans to launch a VOD service dubbed "DirectTV Broadband Video" in Q4 of this year. With Wimax, deployment and tower cost is of course an issue, meaning it could be something that only targets major metro areas, at least at first.
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Cjaiceman
MVM
join:2004-10-12
Castle Rock, WA
(Software) pfSense
Ubiquiti UniFi UAP-AC-PRO

1 edit

Cjaiceman

MVM

Fine and Dandy...

... but I'm still going to stick with Qwest DSL for now. I highly doubt that they will offer 7Mbps for $35/month... Plus the latency will be an issue as I am a gamer.... But, for those out in the sticks that can't get anything other than satellite this is a good option if they do it right!

They are also going to have a hard time convincing people with cable that are getting 10+mbps to switch to a lower service for about the same price (if they price it ~$40-$60/month).

Personally I think they should target areas that don't have any broadband options (other than satellite).
poolek
join:2003-11-04
Austin, TX

poolek

Member

Re: Fine and Dandy...

It's not satellite - it's terestrial wireless/wimax. Latency won't be an issue.

I'd be interested in it. I currently use DirecTV and prefer it to the cable offerings in my area. If they offered a decent competitor price, speed and stability wise to the cable or DSL offerings I can get, I would certainly consider switching.
rradina
join:2000-08-08
Chesterfield, MO

rradina

Member

Re: Fine and Dandy...

I second that. I've had both Dish and DirecTV and prefer either to cable. However, I want broadband and bundled discounts offered by cable made me get rid of the dish.

If DirecTV and/or Dish can offer a WiMax solution with a bundled TV/VOD/DVR/broadband package, I'd love to have a competitive option.

Of course it's not enough to offer 1Mbps. I'd expect several Mbps service, reasonable price, no port blocking or GB/month caps etc, etc, etc.
shashinka9
join:2000-09-16
West Boylston, MA

shashinka9 to Cjaiceman

Member

to Cjaiceman
Most likely this wouldn't be available in the sticks either or it maybe a long time.
bradleym
join:2002-08-05
Peoria, IL

1 recommendation

bradleym

Member

Refocus your efforts.

It would likely target major metro areas first? What the hell is the point of that? Those areas already have multiple options for broadband, including EVDO or other 3rd generation wireless access. Rupert needs to realize the market for this technology is out here in hicksville, where most people are still stuck on dialup or have broken down and purchased a 2-way satellite, but would gladly trade up to a better broadband solution.

Karl Bode
News Guy
join:2000-03-02

Karl Bode

News Guy

Re: Refocus your efforts.

quote:
It would likely target major metro areas first? What the hell is the point of that?
Maximized profitability?
bradleym
join:2002-08-05
Peoria, IL

bradleym

Member

Re: Refocus your efforts.

How is it more profitable if no one subscribes? I personally would rather go after a market that is underserved rather than go head to head with the other triple-play providers. Let's see, a virtual monopoly that would allow me to charge a premium for all three services, or an extremely competitive market where we're playing 'pricing war' with the incumbents.

Karl Bode
News Guy
join:2000-03-02

2 edits

Karl Bode

News Guy

Re: Refocus your efforts.

quote:
Let's see, a virtual monopoly that would allow me to charge a premium for all three services, or an extremely competitive market where we're playing 'pricing war' with the incumbents.
Those markets (Northern Virginia) are so competitive because statistically there's more money to be made off of more affluent customers, packed tightly together.

I suppose DirecTV could pick and choose 2nd and 3rd tier cities to deploy Wimax towers in, but they'll still be engaged in price-wars with whatever incumbent relic is tottering around charging the maximum amount because they haven't seen what competition looks like...

If you're going to play with the big-boys, play with the big-boys. Start by deploying in dense wealthy areas, then deploy everywhere they do, charge less, and offer more.

wifi4milez
Big Russ, 1918 to 2008. Rest in Peace
join:2004-08-07
New York, NY

1 recommendation

wifi4milez to bradleym

Member

to bradleym
The cost of deploying versus the "relatively" small amount of potential subs is why they wont first deploy in the sticks. If you look at almost all technology deployments they usually start in tier 2 cities while they work out the kinks. This means that NYC will most likely NOT be the type of market they start out in. A place such as Syracuse or Rochester NY (two completely random examples!!) are much more likely targets until the service is up to speed. Look at Verizon's EVDO rollout as an example. They started with San Diego and a small pilot in Washington DC proper. Look at Cingulars HSDPA rollout, Detroit, Boston, etc. I hate to say it but I really dont think this type of service will be coming to the sticks (from a major player) any time soon!

dslwanter
20 years on this site
Premium Member
join:2002-12-16
Mineral Ridge, OH
·Armstrong
Ubiquiti UniFi AP-LR
Ubiquiti EdgeRouter X SFP

dslwanter

Premium Member

Get out of here

First off I doubt the price is going to come down, second off who's going to want to bay for that install, third off who's going to want to put up with that latency. Why would I have to go through that trouble with DSL is available to me? They just need to face the fact, if they even want a chance to compete they need to make some serious changes. People that have no broadband option would rather go with dial-up simply because they can't afford direcway.

shaner
Premium Member
join:2000-10-04
Calgary, AB

shaner

Premium Member

Re: Get out of here

said by dslwanter:

First off I doubt the price is going to come down, second off who's going to want to bay for that install, third off who's going to want to put up with that latency. Why would I have to go through that trouble with DSL is available to me? They just need to face the fact, if they even want a chance to compete they need to make some serious changes. People that have no broadband option would rather go with dial-up simply because they can't afford direcway.
What latency? What install fee?

This isn't satellite internet we're talking about here.

rawgerz
The hell was that?
Premium Member
join:2004-10-03
Grove City, PA

rawgerz

Premium Member

"something"

No guts, no glory.

oliphant
I Have 8 Boobies
Premium Member
join:2004-11-26
Corona, CA

1 recommendation

oliphant

Premium Member

Cool

quote:
With Wimax, deployment and tower cost is of course an issue, meaning it could be something that only targets major metro areas, at least at first.
Cool, then DSLR eds can accuse DirecTV of redlining too.

THXULTRA
@12.158.x.x

THXULTRA

Anon

VOD not from Comcrap

Sounds great to me I would love to get VOD from directv. Worth the effort just for vod. I see video on demand as sat's only weekness and if this is a way to run it then great.

FFH5
Premium Member
join:2002-03-03
Tavistock NJ

FFH5

Premium Member

Murdoch's Wimax starting to look like vaporware

If Rupert isn't careful, his Wimax broadband might not start deploying until Vista is up and running. He may soon qualify for the Vaporware story of the year.
grandpinaple8
join:2006-01-03
New York, NY

grandpinaple8

Member

HaHa

I can't wait for the cable is better propaganda to start coming out, I miss the old dish is being blocked by a tree commercials.

Transmaster
Don't Blame Me I Voted For Bill and Opus
join:2001-06-20
Cheyenne, WY

1 recommendation

Transmaster

Member

This is crap I want my broadband....


I want broadband at my house now!!!
This is total horse hockey, this is unfair they have 2000 TB per sec' connections in South Korea for $3.98 a month. I would settle for 500 gig per second, and I would be willing to pay a germanium price $10.99 a month. is that too much to ask I mean gee whiz.

................................

odreian615
join:2006-01-18
Chicago, IL

odreian615

Member

once again

the people out in the boondocks gets kicked in the face
whocares0
Premium Member
join:2003-07-26
..

whocares0

Premium Member

"'IF"'

directv sets itself up as DISHTV, then all bets/contractsare off i'll go back to time warner/cable tv, as much as i dislike cable, I've seen some friends with Dish tv,(no way for me to have that) "jazzy"

cabletv rates up aga
@nycmny.fios.verizon.

cabletv rates up aga

Anon

cable rates up again..

directv raised base rates again!

Total choice is $45 a month now...
I don't think anything directv could sell now would compete with wireline prices. People might be migrating back to cable-tv providers again. Bundle rates would seem to make other providers rates lower and much lower with a bundle discount. It may be too little too late for directv.

ITALIAN926
join:2003-08-16

ITALIAN926

Member

Re: cable rates up again..

I just checked my last statement, you are 100% right. I didnt even realize. How the hell can they raise prices when Im in a 1 year contract ? They DID drop their HD package down $1 a month though ! Unbelievable !~

My total bill is now $71 a month and I dont even have any movie channels.. just 2 STB's 1 of them HD.

Michieru2
zzz zzz zzz
Premium Member
join:2005-01-28
Miami, FL

Michieru2

Premium Member

Interesting

But where would these Wimax connections be connected too? If there competitor is the telco's I am pretty sure they would not like to pay them for landlines to these WiMax connections, so how will this all works is my real question.

Plus Directv is getting pretty big I won't mind if they split Directv into two different companies where one deals completely with just the Wimax network and the other wtih TV.
Can't have these guys get too big, not that they already are.
cmaenginsb1
Premium Member
join:2001-03-19
Palmdale, CA

cmaenginsb1

Premium Member

Re: Interesting

Most people don't seem to understand that the majority of internet traffic is not handled by the telcos. Hell in California if you were an SBC customer you were 2 hops from Sprint's backbone.

There are plenty of ways to bypass the telcos by jumping into a Tier-1s backbone hut.

As to where they deploy, a dense market means less capital investment per subscriber. A second thing to think about, would you rather have 80% of 10000 people or 1% of 12 million? It isn't about market share but total subscribers.
Mutiny32
Network Security Engineer
join:2000-07-04
Lees Summit, MO

Mutiny32

Member

Sprint vs. DirecTV

Interesting, a possible future competition between Sprint and DirecTV.

lemme see about that
@nycmny.fios.verizon.

lemme see about that

Anon

Re: Sprint vs. DirecTV

Hmm, lemme see about that:
a competition on who can raise prices faster, offer outsourced customer service quicker, screw up invoices better?!?!?
Wait, I forgot one, add to the lag of broadband more...