Satellite Broadband

Satellite Broadband Getting $100M Stimulus

The U.S. Broadband Stimulus plan has set aside $100 Million to subsidize satellite services, reports Space News.

The vast majority of stimulus funds so far have been awarded to terrestrial wireless and fiber-optic projects. But industry officials say a federal program, set to begin this spring, will set aside at least $100 million to bring satellite-based services to remote communities. The $100 million initiative will enable customer discounts of $750 on the satellite dishes and electronic components needed to receive satellite-based broadband in homes or small businesses

Last November leading consumer satellite companies including Hughes Network Systems and Viasat delivered to NTIA and RUS a proposal to set aside $500 million in broadband funding to reach customers who lack access to terrestrial broadband service. The group proposed subsidies of $1,000 for each customer to cover the cost of equipment or service.

It is not clear yet how the satellite firms will respond to the $100 million RUS program. They may compete individually for funding or submit a joint proposal. Under one possible plan, the satellite companies would work together to establish an organization focused on offering broadband service to customers with no other high-speed Internet options. The firms still would compete for individual customers.

“This is especially meaningful because the government is acknowledging that satellites are a key part of the solution to bringing broadband to everyone,” said Dean Manson, senior vice president for Hughes Network Systems.

So far, few projects that involve satellites have been selected. Satellite projects are reportedly being passed over by government officials due to concerns that the services are slower and more prone to delay than other communications options.

Both Hughes and ViaSat have ordered large new Ka-band satellites. ViaSat-1 is scheduled for launch in February 2011, while Hughes’ Jupiter-1 satellite is scheduled for launch in 2012.

The ViaSat/WildBlue venture expects launch high capacity Ka-band services in early 2011 with their ViaSat-1 satellite and SurfBeam 2 satellite terminal.

ViaSat-1 is expected to have more capacity than the combination of all other satellites in operation over the United States, providing 2-10 Mbps download speeds at retail prices competitive with terrestrial services, says the company.

WildBlue, now owned by ViaSat, serves over 500,000 subscribers within the 48 contiguous United States. It also resells service to DirecTV, Dish Network, AT&T and the National Rural Telecommunications Cooperative (NRTC). They pitched their “next generation” satellite capabilities, on Capitol Hill earlier in June of 2009.

As of Feb. 18, the U.S. Commerce Department’s National Telecommunications and Information Administration (NTIA), which has $4.7 billion to spend, had awarded money for 19 projects worth $228 million in addition to $97 million in mapping and planning grants. The U.S. Agriculture Department’s Rural Utilities Service (RUS), which has $2.5 billion to spend, had awarded $587 million for 25 projects. By law, the two agencies are required to commit the entire $7.2 billion by Sept. 30.

RUS and NTIA are accepting applications for grants and loans until March 15, according to the Federal Register.

source : dailywireless.org