wild blue (satellite) / liberty media
Tuesday, July 20, 2004
Denver Post.com
WildBlue launches satellite
By Greg Griffin
Denver Post Staff Writer
Five years after it was formed to deliver satellite Internet service, WildBlue Communications launched its first bird Saturday.
The Greenwood Village company, backed by John Malone's Liberty Media, plans to offer high-speed Internet via satellite starting early next year.
"It's taken us a long time to get here, but we're still on track with our original business plan," said Brad Greenwald, WildBlue's vice president of sales and marketing. "We're targeting rural areas and small cities that don't have access to cable modem or DSL."
The rural market includes 25 million homes and small businesses, he said.
WildBlue's 12,000-pound satellite took off from French Guiana on Saturday night atop an Ariane 5 rocket. Built by Boeing Co., the Anik F2 spacecraft is the heaviest commercial satellite ever launched.
Ottawa, Canada-based Telesat owns the satellite and is leasing much of its capacity to WildBlue.
The launch was a huge step forward for WildBlue, which at one time planned to put two satellites into orbit by the end of 2001. Unable to raise enough money amid the tech downturn, WildBlue canceled an initial public offering that year and put its plans on hold.
Last year, a group led by Liberty invested $156 million in WildBlue, allowing the company to complete the satellite and begin construction on another one being built by Loral Space & Communications.
High-speed satellite Internet service hasn't been profitable for those who have tried it. So far, no one has found a way to offer service that compares with cable and DSL in quality and price, said Jimmy Schaeffler, an analyst with the Carmel Group, a California consulting firm.
WildBlue officials say their satellite uses new technology that can deliver service to many more customers than traditional TV satellites. That allows the company to price the service competitively, Greenwald said.
Customers will pay $300 to $400 for equipment and about $50 a month.
If the company can deliver quality service at that price, Schaeffler said, it is "almost in a monopoly position."
WildBlue's biggest competitor is DirecWay, a service of No. 1 satellite TV company DirecTV. Schaeffler said WildBlue's technology is superior to that of its competitor, which has struggled to attract customers.
But DirecWay is working on a new satellite that may launch as early as next year, which could take the advantage back, he said. |
