WorldCom launching satellite ISP

By George A. Chidi Jr., IDG News Service

November 27, 2001 12:00 PM ET

IDG News Service - WorldCom Inc. plans to launch satellite Internet broadband services for the U.S. early next year, offering download bandwidth in a general operating range of 600K to 800K bit/sec., the company announced Tuesday.

WorldCom is pitching the satellite service to business customers, emphasizing applications like multicasting, data-casting and interactive services for remote users. WorldCom will offer enterprise business customers virtual private network services, to allow remote users secure access to corporate networks.

To offer its service, WorldCom is using and rebranding the Direcway satellite infrastructure from Hughes Network Systems Inc. in Germantown, Md. Hughes uses geosynchronous stationary-orbit satellites to deliver Internet service to pizza-size ground terminals.

Satellite service appeals to consumers caught in areas unserved by other broadband options such as cable Internet or Digital Subscriber Line (DSL) service. Service is theoretically possible anywhere the southern sky is visible. A Hughes two-way satellite dish costs about $500, and installation fees add about another $200.

The initial costs associated with satellite service may limit its appeal to consumers. Service providers have also found difficulty in profitably rolling out consumer services in remote locations because a licensed service technician must set up the ground satellite dish. Often, service providers bundle satellite TV services with the Internet service, letting customers combine equipment and installation costs for two services at once.

WorldCom hasn't partnered with a satellite TV service provider for bundled Internet service, but a Hughes dish installed for TV can be adapted to add Internet service, a WorldCom spokeswoman said.

Pricing for the satellite service wasn't immediately available, although the spokeswoman said it would be comparable to DSL prices. Satellite services have typically been about 20% more expensive monthly than DSL.

Related stories:

AT&T Wireless scraps fixed wireless, Oct. 26, 2001

WorldCom Q3 revenue up, profits down, Oct. 25, 2001

Brief: WorldCom to cut 1,000 jobs in Europe, Oct. 2, 2001

Reprinted with permission from

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