[TWIAR] DirecTV may try broadband on power lines

[Greg Williams]

DirecTV may try broadband on power lines
Mon May 14, 2007 7:57PM EDT
By Yinka Adegoke and Robert MacMillan
http://www.reuters.com/article/technologyNews/idUSN1433448320070514?feedType=RSS&rpc=22

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.

-- 

Gregory S. Williams
gregwilliams(at)knology.net
k4hsm(at)knology.net

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