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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. | ||||||||||||
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