Satellite breakthrough

May 11, 2006

By: Al Senia
America's Network

http://www.americasnetwork.com/americasnetwork/article/articleDetail.jsp?id=325904


In a sign that the broadband wars in the United States are really heating 
up, AT&T this week expanded its market reach with fiber and satellite 
technologies.

In a speech at the Detroit Economics Club, ATT&T chairman and CEO Ed 
Whitacre said beginning this month the company will begin using satellite 
and fixed-wireless technologies to provide high-speed broadband in rural 
communities that can't presently access it over traditional telephone 
lines. The satellite service, in partnership with service provider 
WildBlue, is being offered to rural customers in AT&T's 13-state local 
service area.where DSL isn't available. (During the last year, AT&T has 
emerged as one of the nation's largest DSL providers with more than 1 
million customers, thanks to aggressive marketing and attractive pricing.)

The satellite broadband service will be priced at between $50-$80 monthly 
(depending on delivery speed), more than most DSL or cable services. And it 
will be slower than many competing services, with speeds ranging from 
1.5Mbps downstream and 256 Kbps upstream. But it will be operating in areas 
where competing high-speed services simply don't exist.

Even so, the new satellite service could do a lot to validate satellite 
broadband as a delivery technology. Currently, Clearwire is the best known 
provider of wireless broadband, utilizing radio towers for a WiMAX-type 
service in 27 metro areas and 200 cities in 12 states, as well as Mexico, 
Ireland, Belgium and Denmark.

AT&T is also making its move at a point where regulators in California and 
Texas (AT&T's primary consumer service areas) just loosened the regulations 
governing broadband over power line delivery by utility companies, who 
could suddenly emerge as broadband competitors in rural areas.

Whitacre's latest move with satellite shows the company isn't afraid to 
take a risk with unproven technology, especially if it means grabbing a 
competitive edge. In fact, Whitacre also spoke about the promising future 
of two other developing technologies. He said the company's Project 
Lightspeed fiber-to-the-node initiative will be made available within three 
years to more than 5.5 million low-income households as part of its initial 
build in 41 target market..

He also announced that AT&T would expand the scope of its WiMAX and other 
fixed-wireless marketing efforts, with new deployments slated by year's end 
in Texas and Nevada. "With our resources, scope and expertise, AT&T today 
is well-positioned to deliver the benefits of new innovations to customers 
of all sizes," Whitacre said.

Now, the only question is, are the customers ready to buy in to that vision?


================================
George Antunes, Political Science Dept
University of Houston; Houston, TX 77204
Voice: 713-743-3923  Fax: 713-743-3927
antunes at uh dot edu



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