EchoStar and DirecTV have entered into deals to resell satellite broadband from WildBlue Communications, potentially bringing high-speed net access to millions of rural users.
Satellite broaband operator WildBlue Communications announced today it has entered into agreements with satellite television providers EchoStar and DirecTV to resell satellite broadband services.
WildBlue provides satellite-based broadband Internet and data services for about $50 to $80 per month, focusing on areas where customers do not have access to other forms of broadband communications, or where available broadband options are few and far between. WildBlue bounces signals off a satellite owned by Canadian phone company BCE, currently serves about 60,000 customers in the U.S., whereas DirecTV and EchoStar combined reach almost 30 million subscribers. As such, the agreements with EchoStar and DirecTV could substantially increase WildBlue’s user base, particularly given the popularity (and practicality) of satellite television in outlying and rural areas often lacking in where cable and other broadband technologies.
“Our agreements with DIRECTV and EchoStar are a turning point for WildBlue,” said David Leonard, WildBlue’s Chief Executive Officer. “We have worked very hard this year to make our affordable broadband Internet service available to every home and small business across the continental U.S., and we are pleased to be working with DIRECTV and EchoStar to further strengthen our presence nationwide and to extend their respective product offerings as well.”
Financial terms of the arrangements were not disclosed; however, both EchoStar and DirecTV have agreed to make WildBlue their exclusive provider of satellite-based Internet services for the next five years.
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RSSNow the question will be this: Will EchoStar and DirecTV offer the same price? My guess is that they compete and keep lowering their price and ultimately lose money doing so in an effort to retain new customers.