ViaSat To Buy Internet Provider WildBlue

ViaSat Inc. (VSAT) agreed to acquire satellite-Internet provider WildBlue Communications Inc. for $568 million in cash and stock in a deal that comes as Liberty Media Corp., owner of 37% of WildBlue, is reordering its holdings.

WildBlue, which provides high-speed Internet access largely to rural areas, is more than one-third owned by a Liberty Media tracking stock, Liberty Entertainment (LMDIA). Those operations are in the process of being spun off completely from Liberty Media, a deal which many have expected will ease a potential acquisition of DirecTV Group Inc. (DTV). Liberty Media owns 52% of the largest satellite-television provider in the U.S.

ViaSat, a provider of satellite and other wireless-communication products, said WildBlue has over 400,000 customers. The deal paves the way for an expansion of WildBlue's broadband service using ViaSat technology, including a ViaSat-1 satellite scheduled to launch in early 2011, ViaSat said. WildBlue developed its satellite in 1997 and launched its commercial service in 2005.

By joining forces, the two companies seek to reduce the long-term costs and risks of expanding Internet access via satellite. The spread of these services has been impeded by hefty start-up costs, as well as technical challenges that historically made it hard for satellites to compete with cable- and phone-based rivals on price and quality.

Under the agreement, expected to close between January and April, ViaSat will issue $125 million of stock, within a range of 4.3 million to 5.7 million shares. The company has about 32 million outstanding. It will also pay $443 million of cash, but the cost will be $68 million less when accounting for the cash on WildBlue's books. The company will need financing to pay for the cash portion of the takeover. WildBlue's owners, which also include Kleiner Perkins Caufield & Byers, Intelsat Ltd. and the National Rural Telecommunications Cooperative, will be able to nominate one person to ViaSat's board.

The company reported improved results in its latest quarter amid what ViaSat Chairman and Chief Executive Mark Dankberg in August called a "robust" order pipeline.

ViaSat's new satellite will have nearly all of its capacity aimed at regions where Wild Blue is most capacity-constrained, including large parts of the Eastern U.S. and sections of the West Coast. While initially targeting millions of rural customers for whom satellites currently are the only feasible way to access the Internet, the expanded service will eventually also compete head-to-head with broadband services provided by cable-television and telecom rivals in suburban areas. According to some ViaSat projections, the combined entity could attract as many as 35,000 customers a month. That would be a substantially higher rate than during Wild Blue's first months of operation.

iDirect introduces DVB-S2 Evolution Modem X3

iDirect introduces the new line of DVB-S2 enabled sat modem under the Evolution series X3. This modem also enables cheaper service price under the shared iDirect service.

VAR companies are launching iDirect's DVB-S2 Evolution Modem. With this modem, we offer a new solution for internet via satellite which will allow increased bandwidth efficiency. This new DVB Evolution product with adaptive coding and modulation will allow increased availability to customers.

iDirect’s Evolution product line by iDirect is built on the DVB-S2 standard with Adaptive Coding and Modulation (ACM). The new product suite comprises iDirect’s Evolution routers, line cards and iDX software. Service providers can leverage this product line to build next-generation satellite networks that significantly improve bandwidth efficiency and lower operating costs.

New Inclined Orbit Satellite Tracking Algorithm

C-COM has developed a proprietary inclined orbit satellite tracking algorithm which will provide C-COM customers the ability to use inclined orbit satellites for their space segment needs.

Inclined orbit satellites are end of life satellites that may have an additional useful life span from 6 month to a few years, however they are no longer in their prescribed controlled orbit due to lack of fuel.

From the point of view of a satellite owner, the economics of this situation are compelling. On one hand, the revenue derived from leasing transponder time on an inclined-orbit satellite is considerably less than the revenue which could be realized from a truly geostationary satellite. On the other hand, propellent usage is cut dramatically, thereby extending the useful life of the satellite, often by several years. The potential revenue to be derived from this extended life more than offsets the revenue lost through reduced transponder pricing. It comes as no surprise, then, that many satellite owners have allowed their geostationary satellites to drift into inclined irbits.

An inclined-orbit satellite poses a problem for the end user: the earth station antenna must track the satellite. For this purpose, the antenna must be equipped with a dual-axis steerable mount and a tracking controller. A dual-axis steerable mount is a motorized mount which can be moved independently about two axes: east-west and up-down. Those moves are program-controlled. This type of controller mathematically calculates the pointing angles to the satellite and moves the antenna accordingly. Calculations are based on program data entered into the controller.

This type of controller is capable of moving the antenna continuously, rather than in a series of steps. This technique is advantageous in low-signal situations where any change in AGC voltage would result in degraded signal quality.

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With this feature enabled, the iNetVu controller will ensure that the mobile antenna maintains its maximum peaked signal on the configured inclined orbit satellite irrespective of their inclination angle. They have decided to develop this proprietary inclined orbit application for iNetVu controllers based on demand from the customers. This added feature will provide existing and future customers with the ability to use any inclined orbit satellite, should there be one available to them, and take advantage of the lower cost space segment offered over these satellites.

ViaSat gambles on future of broadband satellite

ViaSat gambles on future of broadband satellite, hoping to draw rural customers with no access to high-speed Internet service. It's been 16 months since ViaSat Chief Executive Mark Dankberg unveiled plans to build a $400 million broadband satellite – calling it the biggest growth opportunity the Carlsbad company might ever see. And it's been 16 months since the company's shares tanked, falling 29 percent the week after the announcement.

Building its own satellite is a swing-for-the-fences strategy that could transform the company but could also strike out. Today, ViaSat has invested $100 million and counting toward the satellite, which is under construction at Space Systems/Loral in the Bay Area. It's on schedule to launch in about 20 months. ViaSat's effort to build its own satellite rests on a theory that is somewhat unproved: Are millions of rural households outside the reach of cable or DSL willing to pay the monthly fee and installation costs for high-speed Internet service via satellite? The answer is not as obvious as it might seem in the Digital Age. Current satellite-based Internet providers have less than 1 percent of the market share of total broadband subscribers in the United States.

When the Pew Internet and American Life Project asked households in 2007 and 2008 why they hadn't signed up for high-speed Internet, more than half said they didn't see the point. Price was the second-largest factor for not subscribing. The Obama administration, however, definitely thinks there's a need. The economic stimulus package includes $7.2 billion to give all Americans high-speed Internet access – especially those in rural areas where cable or DSL isn't available. That's why ViaSat and the satellite industry have become more vocal recently in touting their broadband programs. They want to make sure that satellite has a seat at the table with all the other technologies competing for stimulus funds.

The monthly cost for satellite broadband isn't much higher than for cable or DSL. It's more the upfront costs. Upfront fees vary, and specials can lower them. But to get satellite broadband service, households need a dish and modem installed. While the equipment can be purchased or leased, upfront costs and installation often range from $200 to $600.

Although ViaSat's satellite is nearly two years from launch, the company hopes that ViaSat 1 will benefit from federal programs encouraging expanded broadband access. ViaSat 1will be a new generation of satellite aiming to have a tenfold increase in the broadband capacity compared with existing satellites from competitors WildBlue Communications and Hughes. That translates into faster service for customers. ViaSat1 is proposed at 100 gigabits per second total capacity. It promises to deliver download speeds to Internet subscribers of between 2 megabits to 10 megabits per second.

WildBlue and Hughes, the largest companies offering satellite Internet service in the United States, each has about 10 gigabits of capacity. Existing satellite plans offer download speeds of 512 kilobits to 1.5 megabits per second for basic service. Faster speeds are available, but the monthly fees are well over $100. Viasat is proposing to provide just a lot more bandwidth than either of the established services, that's everything in a nutshell about what the differences are. While some Wall Street analysts see promise in ViaSat's satellite venture, it's an expensive gamble. There could be technical delays, which can quickly jolt costs skyward. Moreover, the satellite industry is littered with epic money-burning failures. And it takes years to build a satellite – leaving room for competing technologies such as WiMax or fourth-generation cellular networks to gain a foothold in rural markets. But perhaps the biggest risk is whether demand really exists for high-speed Internet outside of regions covered by DSL and cable at proposed prices. Analysts estimate that 10 million to 15 million households in the United States don't have access to broadband through cable or DSL. Existing satellite Internet providers combined have only 875,000 subscribers out of the 106 million households with broadband. There's certainly not a large percentage (of the population) in US that can't be reached by cable or DSL. Satellite has been available to fill that gap, but the problem has been the pricing has not been attractive. They haven't really established a huge user base.

Basically the market is constrained. It seems WildBlue does not have much capacity left in high-demand areas. Neither does Hughes. One question is how big would the market be if you went in with 10 times the bandwidth those guys have? ViaSat believes that it would be much bigger – particularly if it can offer high speeds at roughly the same costs. It expects retail prices for the service will cost about $50 a month for a basic plan, which is competitive with existing broadband services today. The company does not want to sell directly to consumers. It plans to be a wholesale provider of bandwidth to Internet service providers, or ISPs. WildBlue could be a potential ISP partner. So could rural telephone companies and satellite TV providers.

Founded in 1986, ViaSat spun out of San Diego wireless pioneer Linkabit. Its bread-and-butter business is making complex communications equipment for the military, such as modems that fit in the nose cones of fighter jets to allow pilots to see data from the battlefield.

Eutelsat's ToowayT satellite Internet service

Eutelsat Communications, the European leader for satellite communications, has launched its revolutionary new Tooway™ consumer Internet access service in the UK making Lord Carter's Digital Britain vision of universal internet access a reality.

Using satellite technology available from just £29.99 per month, Tooway™ can now offer the UK's rural homes, and those in slowband areas, access to 2 megabit per second (2Mbps) broadband services without the need for any existing telephone line. Tooway™ can deliver broadband for all, as called for by Lord Carter in the Digital Britain interim report published in January this year. The service is also triple play-ready, allowing distributors to offer additional TV and IP telephony services using the same equipment. Tooway™ will be delivered in the UK via a network of certified local distributors, including Bentley Walker Satellite Internet Solutions, Avonline Ltd in Bristol, Satellite Solutions Worldwide Ltd in Oxfordshire and Remote Data Services Ltd in Perthshire, Scotland. The Tooway™ solution consists of a small satellite dish and a modem connected to the PC via Ethernet, giving customers Internet access following a simple installation.

According to Broadband think tank Point Topic large sections of the UK are still without the minimum 2Mbps broadband speed Lord Carter recommends. Around 15 per cent of homes in the East Midlands are currently out of range, as are almost 16 per cent of homes in the North East, nearly 20 per cent in the South West, and around 14 per cent in the South East. The traditional route of extending cable connections capable of running the service to these homes would be expensive and well beyond the 2012 deadline set by Lord Carter.

"Tooway will help make Lord Carter's vision for Digital Britain a reality by revolutionising the consumer market for satellite Internet access," said Arduino Patacchini, Director of Multimedia and Value Added Services at Eutelsat. "Tooway™ is able to offer true broadband access with total independence from existing infrastructures. It has the technology and capacity to become the definitive, low-cost solution for geographical areas that are affected by the digital divide."

Tooway is the first satellite two-way broadband service offering similar speeds and costs to ADSL. The service is based on Eutelsat's satellite coverage, the commercial and infrastructure operating experience of Eutelsat's subsidiary Skylogic and ViaSat's SurfBeam technology. The technology used by Tooway™ comes to Europe after acquiring extensive experience on the North American market, where ViaSat already provides the equipment and network for over 400,000 homes with satellite broadband access fully independent from the terrestrial network. Today, Tooway™ is already serving customers in 20 European countries including Germany, France, Spain, Italy, Switzerland and Ireland with other countries across Europe rolling out over the coming months.

Tooway operates in the Ku-band in the UK. It is delivered using Eutelsat's EUROBIRD™ 3 satellite at 33º East. The service offers two-way satellite access to users without the need for a telephone line, delivering speeds of 2Mbps on the downlink and 256 Kbps on the uplink.

In 2010, Eutelsat will expand the service with additional high speed Internet access up to 10Mbps. These revolutionary broadband speeds will come from the launch of KA-SAT, a dedicated new satellite from Eutelsat, specifically designed for broadband delivery in Europe. The satellite, which has the combined capacity of forty traditional satellites, will enable Eutelsat to deliver Internet access to up to two million European homes at a similar speed, price and quality to that of terrestrial ADSL2 services.

Satellite Internet Project backed by Google

Internet firm Google and Europe's biggest bank HSBC have thrown their weight behind a plan to provide cheap, high-speed Web access via satellite to millions in Africa and other emerging markets. Google has joined forces with the bank and cable operator Liberty Global to back a group called O3b Networks, which stands for the "other 3 billion" people who do not have access.

It will provide high-speed backhaul for telecoms operators and Internet providers, which can then sell services to businesses and consumers. O3b networks said in a statement the satellites would be constructed by Thales Alenia Space and should be operational by the end of 2010. The coverage would reach from Spain to South Africa, include most of South America, large parts of Asia and all South Pacific Islands.

The project intends to offer fibre performance over satellite to parts of the world where it is not commercially viable or practical to deploy a fibre network. Because its satellites orbit earth at lower altitudes than those used to beam TV signals to homes, they work better for Internet access where latency -- the amount of time it takes for bits of information to travel from source to destination.

In some parts of the world, the company will compete with fibre-optic cables currently under construction -- for instance, over a dozen cables have been announced connecting Africa to Europe, the Middle East and Asia. The group is also hoping that Internet access will prove as popular as mobile phone services have in recent years.

Spaceway 3

Spaceway, built by Hughes Corporation, is a family of next generation satellites already in space for use with satellite internet and satellite TV. Spaceway-1 and Spaceway-2 are used by DirecTV to provide Satellite Television and HD TV service. Spaceway-3 provides additional bandwidth for HughesNet High Speed Satellite Internet subscribers. The new HN9000 modem will be used to access the High Speed Internet provided by Spaceway-3. If you are a new customer using the HN9000 modem we would like comments and customer feedback on this blog. If you are considering becoming a new Hughes Satellite Internet customer and have more questions about Spaceway service, please leave your comments on this blog and our team will do our best to answer them. You can also see Wikipedia Spaceway for more information.

New Mobile Internet Antenna

A small canadian company has announced the availability of its latest iNetVu Mobile satellite antenna platforms, which was developed to work with the new Ka frequency band, a breakthrough satellite communications technology.

The iNetVu Ka66 has been designed to take advantage of this new satellite service which delivers dramatic improvements in two-way, high-speed Internet services for consumers and businesses throughout North America. The Ka66 Mobile Platform has been tested over Telesat Canada's Anik F2 Satellite.

The iNetVu Ka66 will be able to deliver two-way satellite based Internet solutions, VoIP and Video cost effectively, using a low profile mobile or transportable antenna system that can deliver comparable performance to significantly larger and more expensive products. Users of the iNetVu Ka66 mobile satellite Internet platforms will be able to automatically locate the satellite from a vehicle or moveable structure by a simple push of a button and be instantly and securely connected to the Internet at broadband speeds.

ViaSat Enhances LinkStar System

ViaSat's newly enhanced LinkStarS2 VSAT networking system incorporates the new DVB-S2 waveform, offering up to 30% greater bandwidth efficiency and substantially reducing network operating costs. The S2-capable LinkStar hub integrates remote LinkWayS2 mesh VSAT terminals into the same network, enabling flexible hybrid star/mesh network architectures.

LinkStarS2 and LinkWayS2 can now interoperate seamlessly, offering maximum network design flexibility. ViaSat's LinkWay broadband IP mesh network is meeting the needs of business, military, and government clients with applications ranging from broadband IP enterprise networks to distance learning. The addition of a DVB-S2 receiver to LinkWay enables hybrid star/mesh networks managed by a single LinkStarS2 hub.

The LinkStar S2 system builds on the leading DVB-RCS capable VSAT system, with over 100 networks and 75,000 remote terminals worldwide. The new S2-capable LinkStar S2 hubs and remote terminals are compatible with standard DVB-S LinkStar remotes and offer a simple, cost effective transition to the benefits of DVB-S2.

DVB-S2 is the latest advance in transmission technique from the Digital Video Broadcasting Project industry consortium and features a variety of technology enhancements over the current DVB-S standard. The new standard is designed to cut the cost-per-bit to transmit data by satellite by providing more efficient use of satellite transponders.

ViaSat has a full line of VSAT products for data and voice applications, and is a market leader in Ka-band satellite systems, from user terminals to large gateways.