[ARRL-OK] DirecTV may try broadband on power lines

[ClayMayrose at aol.com]

DirecTV may try broadband on power lines
Mon  May 14, 2007 7:57PM EDT
By Yinka Adegoke and Robert MacMillan

NEW YORK  (Reuters) - Satellite television provider DirecTV Group Inc. may 
test delivering  high-speed Internet service through power lines in a major U.S. 
city in the next  year, its chief executive said on Monday.

DirecTV and others are talking  to companies that specialize in providing 
broadband through the electrical grid,  Chief Executive Chase Carey said at the 
Reuters Global Technology, Media and  Telecoms Summit in New York.

"We're not the only ones talking to them,"  Carey said, in response to a 
question on whether DirecTV would consider a test  in a major city. "I think 
you'll see some meaningful tests in this  arena."

DirecTV would like to test delivering Internet access on power  lines in a 
"top 50 city where you're covering at least half the  city."

While DirecTV and fellow satellite TV operator EchoStar  Communications Corp. 
have managed to keep increasing their subscriber base in  the face of stiff 
competition from cable operators, Wall Street analysts have  long questioned 
what broadband strategy the satellite operators will employ to  counter 
competitive pressures.

"We think it would be a good thing to have  a third, a fourth or a fifth 
entrant in broadband and if we can be helpful in  pushing that forward and if 
there's an opportunity for us to intelligently  invest in doing so, we would," 
said Carey.

Controlling ownership of  DirecTV will change hands to media mogul John 
Malone's Liberty Media Holding  Corp. from Rupert Murdoch's News Corp. before the 
end of the year. Liberty Media  is also a founding shareholder in 
broadband-over-powerline company, Current  Group.

Carey said the company has looked at Wi-Max technology for  high-speed 
Internet access, such as offered by Clearwire Corp. He also said  another potential 
partnership with EchoStar on a broadband initiative was still  in the works, 
as were discussions with other companies to bring new broadband  options to 
market.

PHONE, CABLE OR SATELLITE

Carey said satellite  operators have benefited from the rivalry between phone 
companies and cable  operators. Phone companies have aggressively priced 
their DSL broadband products  in packages with telephony and satellite TV to 
compete with  cable.

DirecTV has a marketing partnerships with Verizon Communications  Inc., Qwest 
Communications and AT&T Inc.'s former BellSouth  customers.

AT&T also has a partnership with EchoStar and there has  been speculation 
that the phone operator might one day acquire the satellite  operator to 
accelerate their video subscribers numbers.

"I wouldn't be  surprised for AT&T to have the desire to do so," said Carey 
in response to a  question on whether AT&T would be interested in buying 
EchoStar. "I can  understand the logic. AT&T looked at DirecTV in 2003."

Carey would  not comment on whether there had been any recent merger or 
acquisition talks  between DirecTV and  AT&T.

http://www.reuters.com/article/technologyNews/idUSN1433448320070514?feedType=R
SS&rpc=22   




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