SIA: Satellite Broadband ‘Essential’ to Serving Rural America
Satellite broadband is largely immune to topography and low population density, which drive up the cost for terrestrial carriers to serve rural America, the Satellite Industry Assn. told the White House in a white paper Fri. “Satellites’ ability to overcome these obstacles makes satellite broadband an essential component of broadband access for all American consumers,” the report says. SIA and some members recently met with the Office of Science & Technology Policy (OSTP) (CD April 12 p8).
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During the meeting, OSTP asked whether satellite broadband was affordable. In its white paper, SIA acknowledged that the cost of customer premises equipment is higher than for other broadband access, but “as the take up rate increases, and as new systems come on line, these prices will be substantially reduced over time.” DBS offers a good precedent, SIA said: “Reaching critical mass of subscribers has enabled DirecTV and Dish Network to offer CPE for free when subscribers sign up for annual contracts.” This information is based on anecdotal evidence, David Cavosa, SIA exec. dir., told us. DirecTV is offering promotions with customer equipment at no extra charge, but customers of EchoStar’s Dish network pay to lease or rent gear.
A chart attached to the paper shows that Hughes Broadband offers customer equipment for $399.99 for its HughesNet Home Service and HughesNet Professional, and $699.98 for its HughesNet Business for Small Office and HughesNet Business Internet. WildBlue and StarBand charge $299.99. No pricing was provided for Inmarsat’s broadband service.
Using the FCC’s definition of broadband of 200 kbps at least one-way, SIA said 99.9% of U.S. households are covered by satellite, and the rest will be before 2009. Unlike satellite, terrestrial broadband must use different technologies and infrastructure for urban and rural areas, SIA said. The satellite industry “is making the investment needed to accommodate a projected substantial increase” in satellite broadband subscribers, it said.