EchoStar Communications Corp. Monday
invested $50 million in iSKY
Inc. to provide the nation’s first two-way wireless broadband Internet
service over a single satellite dish.
Following the 2001 launch of iSKY’s Internet service, EchoStar intends to
distribute iSKY broadband access through its 23,000 nationwide retailers.
As a result of its investment, EchoStar (DISH)
will own 12 percent of iSKY and may receive warrants, which could increase
its stake to more than 20 percent of iSKY. The revenue-sharing deal also
landed EchoStar a seat on iSKY’s board of directors.
Charlie Ergen, EchoStar chief executive officer and chairman, said the
service revolutionizes wireless Internet access systems.
“We are excited about taking advantage of new Ka-band satellite technology
to offer consumers a 21st century entertainment and communications
service,” Ergen said.
Thomas Moore, iSKY president and chief executive officer, said its
partnership with EchoStar is essential to iSKY’s consumer marketing
strategy to bridge geographical barriers of the “Digital Divide.”
“This will be the first easy and affordable way for consumers to access
Ka-band satellite broadband and satellite TV through one sales process, one
installation and one set of equipment,” Moore said. “We forecast that 25 to
30 million U.S. homes will not have access to any other broadband solution
when our service hits the market next year.”
ISKY, formerly KaSTAR Satellite Communications, plans to rollout broadband
services late in 2001 and is expected to provide service to Latin America
through the launch of its second satellite in mid-2002.
iSKY’s broadband Internet solution is the first two-way Ka-band satellite
service that is designed to deliver access speeds of 1.5 Mbps, or 30 times
faster than 56k dial-up.
As part of the non-exclusive agreement EchoStar will provide sales and
installation of the TV-broadband service through its nationwide DISH Network Service Corp. EchoStar
installation is connected to a single set-top box through a small satellite
dish at a subscriber’s home or office.
The 26-inch dish is capable of sending and receiving Internet data while
simultaneously receiving hundreds of satellite television channels,
including local stations, interactive television services, and
international programming.
iSKY entered into a $200 million strategic partnership with commercial
satellite operator Telesat
to attain its multi-media satellite capacity and fulfill the EchoStar deal.
Larry Boisvert, Telesat president and chief executive officer, said the
launch of its Anik F2, iSKY will increase its capacity to offer two- way
wireless broadband Internet access in North America.
“Telesat’s powerful new Anik F2 satellite will provide for North American
capacity and lead to affordable consumer satellite broadband services,”
Boisvert said. “It’s also a good example of satellite telecommunications in
a new era.”
Ottawa-based Telesat is a member of the Bell Canada Enterprises media group
and a wholly owned subsidiary of BCE
Inc. (BCE),
one of the world’s leading telecommunications companies.
