Technology

Posted: Wed., Dec. 26, 2001, 6:40pm PT

EchoStar bets big on speed

Spaceway to roll out in 2003

EchoStar Communications will invest at least $1 billion in DirecTV's high-speed Internet platform Spaceway, dispelling analysts' predictions that it was about to cut back on satellite Internet service development.

The pledge is seen as EchoStar's attempt to win support for its $28 billion merger with DirecTV parent company Hughes Electronics among federal antitrust regulators and congressional critics, especially those from rural areas that lack high-speed Internet access via telephone or cable. Spaceway, being developed for rollout in 2003, would cover the entire U.S.

No prices have been announced for the service, but presumably it would be cheaper and faster than the satellite Internet service now offered by EchoStar and DirecTV. EchoStar's current service, StarBand, costs $70 per month and requires equipment that costs $550. DirecTV offers a similar service called Directway.


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