We are developing the first Ka-band geostationary, or GEO, satellite system
capable of providing two-way, "always on," high-speed, or broadband, Internet
access directly to residential and small office/home office, or SOHO, consumers.
We expect to launch our first satellite, WildBlue I, in the first quarter of
2002. Shortly thereafter, we will be able to offer our WildBlue(TM) service
throughout the contiguous United States as well as to portions of Canada.
Subsequent satellites will augment our capacity in the United States and Canada
and allow us to offer our WildBlue service in most Latin American countries. We
expect to offer our residential customers affordable Internet access at speeds
of up to 1.5 megabits per second, or Mbps, which is over 25 times faster than a
56 kilobits per second, or Kbps, dial-up Internet access connection. We expect
to generate revenue primarily from subscription fees for our WildBlue service at
rates competitive with existing terrestrial and proposed satellite-based
broadband services.
Our primary target market will be the approximately 32 million U.S.
households that, according to the Yankee Group, will not have access to
terrestrial broadband services, such as digital subscriber line, or DSL, and
cable modem services, when we commence our WildBlue service. We also believe
that our WildBlue service will provide a competitive alternative to terrestrial
broadband services where those services are available. Our strategic orbital
locations should allow U.S. consumers to receive over a single WildBlue dish
both our WildBlue service and a satellite-based television service, known as
DBS, from either of the two U.S. DBS service providers. We have entered into an
agreement with EchoStar Communications Corporation, or EchoStar, that allows
each of us to market and distribute bundled WildBlue and DISH Network(TM)
services.
DLJ, which is in the process of being acquired by CS First Boston, is set to be the lead underwriter. |
