WildBlue rolled out its 5-megabit-per-second broadband service in Colorado at an introductory price of $5o a month. It plans to launch a 12 Mbps service starting with the same price next month.
Surprisingly, the newest price is just a fraction of the $80-a-month fee being paid by Wildblue’s current national subscribers for a speed of 1.5 Mbps service. Although this is faster than dial up, it can hardly support bandwidth heavy applications like music downloads and video streaming.
WildBlue is also planning to launch its newest satellite communication service in other states like Nebraska and Wyoming. The satellite provider said it expects the service to be available nationwide next month.
Chief Executive Officer Tom Moore noted that satellite communications services are transforming the online landscape in areas underserved by national terrestrial Internet providers. The size of this market is estimated to be at 10 -20 million households.
Dubbed as “fast as fiber experience,” the newest satellite communications service rivals the mobile Internet services of Comcast and CenturyLink. However, Moore thinks that potential satellite Internet users are more likely to be those who have no access to wired Internet services.
According to Walter Piecyk, there is a potentially strong market for satellite communications and Internet services from the airlines industry. The BTIG Research analyst said that the possible satellite communications services for such applications make this type of mobile Internet offering a more attractive to satellite investors.
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