The deal with iSKY looks interesting, as it has the potential to add a second major service category - high speed internet connectivity - to Echostar's existing DBS TV business. This could eventually raise Echostar's "per customer" valuation to something approaching the cable TV co's. The cable TV co's, of course, also have the potential to add telephone service to their offerings of TV and high-speed cable modem internet access.
I can't yet find much info on iSKY, but www.isky.com seems to belong to a "customer support" outsource company. Is this the same iSKY?
I wonder how the iSKY system works - will each user with a little 26" dish have the ability to transmit upwards to the satellite, to request data, web pages etc? Existing satellite/internet access systems use a phone link and modem to request net data, and only use the satellite for downloads.
ILG
Press Release:
biz.yahoo.com
Extract from the PR:
LITTLETON, Colo.--(BUSINESS WIRE)--March 27, 2000-- EchoStar Communications Corp. (Nasdaq:DISH - news; Nasdaq:DISHP - news) announced today a $50 million investment in iSKY Inc.
The companies also announced plans to jointly offer consumers two-way wireless broadband iSKY Internet access via satellite, along with hundreds of EchoStar's DISH Network(TM) satellite television channels, using a single small dish at any home or office in the United States.
Under the agreement, following the launch of iSKY's service, currently anticipated during late 2001, EchoStar would also distribute the iSKY satellite Internet service along with DISH Network satellite TV service through its more than 23,000 retailers nationwide.
With this investment, EchoStar will own 12 percent of iSKY and receive warrants which, based on reaching iSKY customer targets, could increase its stake up to 20.8 percent on an outstanding basis.
iSKY expects to deliver its always-on broadband solution to the home and small office/home office markets at speeds of 1.5 megabits per second (Mbps) or more -- 30 times faster than current dial-up speeds of 56k. iSKY expects to be the first two-way, Ka-band, satellite broadband Internet access service when it launches in 2001.
Under the non-exclusive agreement, EchoStar will provide sales and installation for consumers through its nationwide DISH Network Service Corp., which will install a single iSKY/DISH Network dish that can simultaneously ``see' EchoStar's and iSKY's satellites.
The 26-inch dish will be capable of both receiving and sending Internet data, while at the same time receiving hundreds of DISH Network satellite television channels, including the same popular sports and entertainment services enjoyed today by DISH Network's customers nationwide, including local channels, interactive television services, international programming and more.
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