RURAL BROADBAND PROVIDERS LOOK SKYWARD
[SOURCE: BusinessWeek, AUTHOR: Tim Catts]
Just after nightfall on Aug. 14, a new state-of-the-art satellite owned by
Hughes Communications will blast off from Kourou, French Guiana, into an orbit
more than 22,000 miles above earth. The satellite, Spaceway 3, is part of the
company's bid to reach a bigger slice of a sizable but untapped U.S. broadband
market that remains beyond the reach of cable or DSL Internet service
providers. For years, as major telecom and cable operators such as Comcast,
AT&T, Verizon Communications, and Time Warner have rolled out a bevy of new
bundled telephone and Internet packages for urban centers, many rural regions
languished with dial-up access as just about the only option for Internet
access. For the most part, investments in the hinterlands bear considerable
risks: Absent the economies of scale that come with densely packed customers,
providers are forced to hope that their services are widely adopted. If not,
such investments may never pay off. That leaves a potentially huge market
without high-speed Internet access.
http://www.businessweek.com/technology/content/aug2007/tc20070813_731298.htm?campaign_id=rss_tech
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