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story category DirecTV's Billion Dollar Broadband Plan
National Wimax ISP?
(old news - 03:52PM Wednesday Mar 29 2006)
tags: business · wireless
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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Forums » DirecTV's Billion Dollar Broadband Plan
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Cjaiceman
Premium,MVM
join:2004-10-12
Aurora, CO
·Comcast Workplace
·Comcast


1 edit

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
·RoadRunner Cable
·AT&T U-Verse
·ViaTalk
·AT&T Yahoo

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
·Charter Pipeline

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.
shashinka

join:2000-09-16
West Boylston, MA
Most likely this wouldn't be available in the sticks either or it maybe a long time.
bradleym

join:2002-08-05
Dunfermline, IL

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

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
Dunfermline, IL

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

Host:
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2 edits

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
·Sprint Mobile Broa..
·RoadRunner Cable
·BroadVoice

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!
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Now THATS superfluous!!

dslwanter
Why would I want DSL? I have FTTH
Premium
join:2002-12-16
Lowellville, OH
·Armstrong Zoom In..
·AT&T Midwest

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

Re: Get out of here

said by dslwanter See Profile :

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.
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all night long,
laying pipe,
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rawgerz
In Debt we trust
Premium
join:2004-10-03
Grove City, PA

"something"

No guts, no glory.

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

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.
--
WAR HAS NEVER SOLVED ANYTHING, except ending slavery, facism, communism, Nazism....

THXULTRA

@12.158.x.x

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.

LiamJunket
Premium
join:2002-03-03
Ocean City, NJ

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.
grandpinaple

join:2006-01-03
New York, NY

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
·Qwest.net

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.

................................
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odreian615

join:2006-01-18
Chicago, IL

once again

the people out in the boondocks gets kicked in the face
whocares
Premium
join:2003-07-26
..
·AT&T Southwest

"'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"
--
I try to be friends with everyone,wary of a few,& will always be an enemy to some reguardless of what we do

cabletv rates up aga



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
Stratford, CT

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
join:2005-01-28
Miami, FL

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.
cmaenginsb
Premium,MVM
join:2001-03-19
Palmdale, CA

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.
--
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Mutiny32
Network Security Engineer

join:2000-07-04
Lees Summit, MO

Sprint vs. DirecTV

Interesting, a possible future competition between Sprint and DirecTV.

lemme see about that

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...
Forums » DirecTV's Billion Dollar Broadband Plan


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