The Satellites are Coming! - Company Operations

News Corp.'s confirmation that it was considering consolidating its worldwide satellite operations was seen as another endorsement of the satellite platform for delivery of high-speed Internet.

"There's no question that this is coming," said Mickey Alpert of Washington, D.C.-based telecommunications consulting company Alpert & Associates. "Internet delivery is not going to be a monopoly. There will be a choice. And in areas where satellite makes sense, that'll be it."

And while News Corp.'s announcement stands to affect Internet delivery overseas more than in the U.S., satellite service providers are getting a head start on what experts say will be a two to three year time frame before full deployment of that service here.

DirecTV is planning to offer satellite Internet service called DirecPC soon and will be joined by companies such as Astrolink and Teledesic. News Corp.'s announcement may only embolden these companies' business plans.

Satellite Internet Vs. Cable Internet

Service       Maximum Speed

Satellite     200 Kbps-400 Kbps down
              33.6 Kbps up (telco return)

Cable Modem   10 Mbps-27 Mbps down
              786 Kbps-14 Mbps up

Service       Cost

Satellite     Monthly fee:            $40-$130
              Monthly ISP fee:        $20-$35
              Installation
              (incl. equip.):         $450-$1,000
              Average monthly cost:   $60-$165
              Total first-year cost   $1,170-$2,980

Cable Modem   Monthly fee:            $40
              Installation:           $75-$175
              Average monthly cost:   $40
              Total first-year cost   $555-$655

SOURCE: CIBC World Markets

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