Should DirecTV Be a Broadband Provider?Investors excited about the idea, again... ( old news - 12:31PM Wednesday Dec 13 2006) tags: satellite · competition · businessInvestors are apparently "cheering" reports that soon-to-be new DirecTV managers John Malone and Liberty Media are serious about getting the company (back) into the broadband business. Last week, News Corp's Rupert Murdoch finally made it clear he had given up on a unit he had dubbed a "turd bird" and would be giving up his ownership stake in DirecTV in exchange for Liberty's share of News Corp. But it's not entirely clear what investors are cheering about -- since it's not clear what John Malone plans to do differently. DirecTV already has two failed stints as a broadband provider. Their attempt at offering DSL ended badly, with a collapsed business model and a long line of still bitter broadband refugees. Their satellite broadband effort didn't fare much better. In early 2004, the Wall Street Journal reported that DirecTV was considering re-purposing their Ka-band Spaceway satellites for HD programming. In May of that year, DirecTV's CEO issued a defensive press release, feigning offense at the mere suggestion and denying any such plan. Five months later DirecTV announced they'd be re-purposing their Spaceway satellites for HD content. Last week, the Hollywood Reporter stated that Malone was likely to offer DirecTV broadband in conjunction with companies Liberty already owns. Liberty owns capacity-strapped WildBlue Communications, whose freshly launched WildBlue-1 satellite won't be available for use until April. If Malone's great idea is just getting back into the lag-ridden, barely profitable satellite broadband business, is anybody really that excited? The only remaining and vaguely interesting option is using the DirecTV brand to offer WiMax, but as Rupert Murdoch found out, spectrum is hard to come by. Plus, investors won't like the network construction costs. That leaves signing a co-branding deal with Clearwire, which would bring welcome cash to Clearwire but is about as exciting as a Disney MVNO. Is there any other option Malone will consider that Rupert Murdoch didn't? Should DirecTV and Echostar settle for being DBS providers and give up on the idea of offering a true triple play?
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|
 NateCohen
join:2005-10-10
Schenectady, NY | No Satellite broadband is awful. I guess it oould be useful for people who live in the sticks. But satellite broadband has terrible latency and is very expensive for low speeds. | |
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justbits
More fiber than ATT can handle
Premium
join:2003-01-08
Chicago, IL
 ·AT&T Midwest
·AT&T Yahoo
| Telocity... My Telocity SDSL 784/784 line was great and cost less than ADSL at the time. It performed much better than ADSL 384/128 on the same line even (which funny enough, can handle ADSL 1.5/384 today). Then, DirecTV came along bought Telocity and subsequently ran it into the ground... eliminating broadband competition in my area. Telocity was great. DirecTV destroyed Telocity.
If DirecTV is looking to buy another broadband provider, they ought to look for a worthy one (Speakeasy?) to run into the ground to help the telcos eliminate their competition. | |
|  | Network Guy
join:2000-08-25
New York
·Verizon Online DSL
| Re: Telocity... I had Bell Atlantic-rebranded Telocity 640/90 ADSL service. It was great, stable, and a good deal for the buck at the time. Service went downhill right before DirecTV bought them off, and well the rest is history.
Back then I'd say many broadband resellers failed due to uncooperative telcos and exorbitant leased line pricing. | |
| | | temporalwar
join:2003-11-26
Huntsville, AL
| Re: Telocity... I had telocity and it was awesome, had it before the big telocity push a years back, hardware DSL modem was great.
when direct tv bought them out and things started going downhill fast, and when they quit providing service I had to switch to bellsouth, and with the same copper I went from 1.6Mbps to 1.4/1.2
I love directtv sat, and still use it, but they don't know how to run broadband, even the sat based stuff. | |
| | johnh123
join:2002-11-19
Chicago, IL | I had Telocity 1/1 SDSL, and it was fine as long as you didn't need to reach customer service- if you did, get ready for sitting on hold for several hours. Not bad for $50 in '99. | |
| | tkdslr
join:2004-04-24
Pompano Beach, FL
·Speakeasy
edit:
December 13th, @08:43PM
| Telocity was one of the best... Then Directv took over..
First to suffer was the usenet server..
They reset'd the usenet article number sequences (7 times in six months, a freaking nightmare.) Signed up for Supernews @ 8$/mo.
Then they jumped into bed with Carly Fiorina/Ann Livermore, (outsourcing IT to HPQ India 12/12/2002).
»www.hp.com/hpinfo/newsroom/press···12c.html
»zdnet.com.com/2100-1106-976828.html
And the next day they announced.... The dumping of a ~160,000 DSL subscribers into the street (so to speak). With just a little over a month warning before they disconnected the service.
»news.com.com/2100-1033-977873.html
Then they sold their customer base to Earth, (choke on TOS) link.
I was one of the many who they left out in the cold. grrrr..
So began a mad dash to find another DSL provider who provided, Bridged DSL, static IP, and allowed servers. It took me ~30 days to switch over (using yet another DSL modem). And then another 6 months to get the billing straightened out.
One last thought..
It's been four years to this day (12/13/2002 vs. 12/13/2006), that Directv announced the termination of the DSL Service. I'm not inclined to give them a second chance. | |
| | 
Michieru
zzz zzz zzz
Premium
join:2005-01-28
Miami, FL | Hey Hey!
Don't bring that crap over to my provider, send it to the guys of Earthlink. | |
| 
lml2000
Whazzup
join:2000-08-17
Los Angeles, CA
 ·RoadRunner Cable
| Possibilities Have always believed that Rupe's failed attempt to successfully bid for DTV's own wireless frequency was the impetus to reevaluate his position in the DBS company.
Seems the deal with Liberty, however, was spurred more by Rupe's interest in freeing NewsCorp of Liberty's interest in the DTV parent. Rupe's getting up there & wants to be sure he (& his legacies) have sufficient control over the Newscorp empire. I think the last thing Rupe wanted to see was Malone make a play for Newscorp after he is gone to the big satellite in the sky.
Rumors are abound that Malone might try to merge DTV with DISH. I don't see this immediately happening. Rather, one possibility that might be up Malone's sleeves, is given his content, his cable background, he may be able to carve out a deal with either cable or the "new video-cable telcos" to deliver a broadband wired connection to DTV customers.
What's unique with Newscorp & Liberty is that both are primarily in the content business. Both has entered the distribution business for the purpose of ensuring distribution of their content. Now that content no longer just requires broadcast distribution, but also interactive Internet distribution, it is imperative that Newscorp/Liberty either own, or have access to, the broadband pipe. If the economics don't lend to purchase or buildout, then the only option is negotiate access, using their assets (content) as leverage.
WiMAX, IMHO, while not necessarily a dream, is essentially untest, unproven, & likely around 5 years away from ubiquitous reality. DTV cannot wait for that to happen, nor take the risk it ever will happen. So, I expect Malone, in all his craftiness, to negotiate broadband access with either cable or the telcos. JMO, & a long shot. | |
| | 
Alpine
Premium
join:2000-01-11
Atlanta, GA
| Re: Possibilities said by lml2000  :Rumors are abound that Malone might try to merge DTV with DISH. I don't see this immediately happening. From what I remember, the FCC has informally said that they wouldn't be able to merge since they directly compete (unlike AT&T/BellSouth, for example) and are the only two major providers of satellite.
I've got DTV and really like it for the most part, but Dish's HD w/ DVR offerings are better and cheaper (at least for the hardware.) I don't have HDTV yet, but hopefully soon. I've stuck with DTV because they've got the exclusive NFL package, which is great. But I'll be willing to check out Dish and Lightspeed when AT&T merges and starts offering it in the South. We'll see. Anyone but Comcast! 
Adam | |
| 
dvd536
as Mr. Pink as they come
Premium
join:2001-04-27
Phoenix, AZ | FAP FAP FAP FAP
-
Down with satellite broad(narrow)band.
 | |
| | 
Mactron
el Camino Real
Premium
join:2001-12-16
CM94sv
| Re: FAP said by justbits : Then, DirecTV came along bought Telocity and subsequently ran it into the ground... eliminating broadband competition in my area. Telocity was great. DirecTV destroyed Telocity. Still Bitter I see. 
said by dvd536 :FAP FAP FAP - Down with satellite broad(narrow)band. The slow down and upload I could possibly live with... Hmmm maybe 
But that damn FAP would just be the deal breaker for Satellite for me. 
Maybe the third time will be the charm for Directv ?..
--
If only the Verizon CSRs worked this well. | |
| |
Alpine
Premium
join:2000-01-11
Atlanta, GA | Excuse my ignorance on satellite broadband. What is FAP? | |
| | | | | | |
Alpine
Premium
join:2000-01-11
Atlanta, GA | Re: FAP Gotcha. Just another term for Terms of Service or something similar.
Thanks. | |
| usbbtech
join:2004-03-25
Brooklyn, NY
| There are delivery options
WiNetworks.com |
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Alpine
Premium
join:2000-01-11
Atlanta, GA
| Re: Firmware update? Don't worry - they'd just call Satellite Tech Support in India...
"Uh, I think we flashed our bird with the wrong firmware. Can someone fly up there and hard boot us?"
Adam | |
| 
inteller
Sociopaths always win.
join:2003-12-08
Tulsa, OK
 ·Cingular Wireless
| lets stop catering to hermits. Really. The only people that will find Sat broadband a value are people who choose to live in the middle of no where. Even modestly rural areas have access to DSL and WiFi networks.
I remember when starband came out, that was going to solve all the rural broadband problems, in the end it was an expensive joke.
--
"WHEN THE LAUGH TRACK STARTS THEN THE FUN STARTS!" | |
| | LoRo
join:2006-10-10
Stanwood, WA
| Re: lets stop catering to hermits. Catering to hermits? I have no clue what you do for a living inteller, but here... in the city area... you know SEATTLE, homes are astronomical in price to live in even the rural areas of a city with boradband DSL or Cable. The average cost of a home... that isn't a POS is about $400,000 I suggest you take a look around before you open your mouth... more and more people are moving out of the cities and the suburbs because it is too expensive to live. | |
| | Semi75
join:2006-01-03
Waddy, KY
·Sprint Mobile Broa..
edit:
December 13th, @02:05PM
| Says the guy who obviously has not been to Bellsouth areas. Modestly rural areas having acess to DSL is a pipe dream across the US currently. That may be true in OK and for your telco, as well as other parts of the nation but it is not true over all. In most of Bellsouth's coverage area in KY there are no DSLAMs and not even all urban areas are covered. Also WiFi in modestly rural areas? Not likely unless you are confused and mean fixed wireless. WiFi in modestly rural areas I love that, it might serve 2 homes.
Satellite broadband is terrible, we do agree on that. If Direct TV wants in the broadband market again it better be thinking WiMax/Wireless because there are enough crappy high latency satellite providers out there already. | |
| | | battleop
join:2005-09-28
00000 | Re: lets stop catering to hermits. I have seen people who's neighbors on each side and across the street qualify for DSL but the caller can't. There won't be DSL at one address in the middle of a dense suburban area but you can go out to the middle of no where and get DSL. | |
| | | 
IGGY
No Guru Just Here To Help
Premium,MVM
join:2001-03-30
Chatham, IL
| I know many people just down the road from where I live that would be considered rural. They definitely don't have access to cable or DSL. Wireless internet providers are about their only option other than dial up at this time. These people aren't that far out of the city. This area is a growing suburb of a mid size town. A lot of development etc. But there are areas on the fringe of this that don't have the access the original poster seems to think they should have access to.
--
Test PC Security
Cable Diagnostics
BLOG ZoneAlarm Help Vista x64 Insightbb Plus 15000/1500 | |
| | 
KrK
Heavy Artillery For The Little Guy
Premium
join:2000-01-17
Tulsa, OK
·Cox HSI
·AT&T Southwest
| said by inteller :Even modestly rural areas have access to DSL and WiFi networks. Really, that's news around here, and SBC deployed extra in Oklahoma in exchange for freedom from the Corporation Commission. In Oklahoma, as long as you live in the city, or the town, you might be able to get DSL.
But step out into the "Moderately" rural areas and there's nothing but dial up, and it's usually the kind that only connects at 26.4 bps too.
Out of town = out of luck. There's no credible Wi-Fi around here, either....
--
"Regulatory capitalism is when companies invest in lawyers, lobbyists, and politicians, instead of plant, people, and customer service." - former FCC Chairman William Kennard (A real FCC Chairman, unlike the current Corporate Spokesperson in the job!) | |
| | unc81
join:2002-08-31
Tallahassee, FL
| You don't have to live in the sticks to have NO easy access to broadband. My sister-in-law lives very close to Richmond, VA. However, cable does not extend out to her neighborhood, and Verizon says that the low density of houses doesn't support extension of DSL. Cellular service is her only option.
Cable companies are not expanding their coverage areas. In both our old and new neighborhoods, we lived in subdivisions that were within 2 miles of cable coverages. There was absolutely no interest by the cable company in expanding cable (and cable modem) coverage to our area. (In fact, the current cable company promised to perform an analysis of our situation but never followed through.) We recently didn't buy a house in an upscale neighborhood because of a lack of DSL coverage.
IMHO Cities and counties should exert pressure on the broadband providers to offer services to more or all of the citizens. Extent of coverage should be a major issue in contract negotiations and competitions between companies.
Seb | |
| 
burgermeister
All Computers Are Junk
join:2000-10-23
Utica, MI | Pony up, DirecTV! Don't buy an ISP, buy a network this time. Covad looks like the best bet.
--
"I've learned that depression is merely anger without enthusiasm." | |
| | 
whitecastleyum
@wildblue.net | Re: Pony up, DirecTV! is that a white castle? | |
| | |
burgermeister
All Computers Are Junk
join:2000-10-23
Utica, MI
| Re: Pony up, DirecTV! said by whitecastleyum :
is that a white castle?
Yes it is! You have a good eye.
--
"I've learned that depression is merely anger without enthusiasm." | |
| | | | adams_aj
join:2004-08-31
Smithville, MO | Re: Pony up, DirecTV! We used to go into White Castle in Detroit and order a "sack of sliders". You could get 10 for about 5 bucks back then. | |
| |
killarney
@embarqhsd.net | I hear Covad's in talks with Directv. Been going on for awhile so maybe something comes out soon?
They'd be perfect for the line powered voice service Covad is rolling out w/ Earthlink. | |
| | |
burgermeister
All Computers Are Junk
join:2000-10-23
Utica, MI | Re: Pony up, DirecTV! Yup, with Covad, they'd be able to do the whole triple play thing to compete with cable.
--
"I've learned that depression is merely anger without enthusiasm." | |
| 
fonzbear2000
Premium
join:2005-08-09
Saint Paul, MN
·Comcast
| if they decide to do this they should give free installation and equipment and a higher connection speed-of course, they'll probably be like every other satellite broadband and jack up the price on everything and not give high speeds-i wonder if there is a limit to the connection speed through satellite and what that limit is-maybe that's why they can't give higher speeds
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»never pay full price for high speed again!!! | |
| 
maximus_808
Proud Veteran
Premium
join:2001-08-27
Green Cove Springs, FL
clubs:
| Never again .. As much as i loved there service and price i simply in good conscience could not give directv my money.
Its ironic they announce this now ..a few weeks before Christmas because they pulled the plug and let all those folks go a few weeks before Christmas last time.
--
Opera 9....You don't see many globe humping foxes in Opera either. | |
| | 
Zeb
Premium
join:2000-07-10
Lewisville, TX
edit:
December 14th, @12:04AM
| Re: Never again .. I had my service until January 31, 2003 ...probably longer, and I think everyone else did too. | |
| | | Timmn
join:2000-04-23
Tinley Park, IL
·AT&T Yahoo
edit:
December 14th, @06:44AM
| Re: Never again .. Mine worked until about April. Telocity/DirecTV was probably one of the better ISPs I've had.
I remember, when DirecTV finally discontinued service, there was an ISP that was going to try and use Telocity/DirecTV DSL modems. What became of that?
The reason I ask, is because I still have the dry pair running to my house, about a year or so ago, I connected the Telocity modem to it, and it synced up to something, although there was no service. | |
| GhostDoggy
join:2005-05-11
Duluth, GA
| They should focus on IP video delivery. Yes, IPTV. They could deploy an IP-based video delivery service and skip through everyone's network. If the run into problems, they could then document and file suit (American way) against the individual network providers.
Of course, groups like BellSouth and Comcast will then file suits of their own claiming a need to discriminate against DirecIPTV (I should trademark that one  ) their non-native video data (hello Net Neutrality) and try to Google-invoice them as well. | |
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Firmware update?