Dish Network to Introduce Satellite-Based Broadband Service

Dish will use EchoStar’s EchoStar-17 and ViaSat’s ViaSat-1 satellites at 107.1 and 115 degrees west to deliver a service, promising 5 Mbps/1 Mbps and 10 Mbps/1 Mbps download/upload speeds depending on the package, executives said. Dish didn’t release details of the service, including the brand’s name, data caps and pricing. But it will offer a “better value to the customer” because of the bundle than ViaSat’s entry-level package which has 7.5 GB usage cap and $49 monthly fee, Khemka said. HughesNet, which had 624,000 subscribers June 30, and ViaSat’s Exede, which had 405,000, will continue selling standalone services apart from Dish’s satellite broadband, Khemka said. Dish’s bundle will allow for discounting, he said.

"We will sell it standalone, but our focus is not on that, but rather on a bundled service,” Khemka said. “When you see the packages and the pricing, it is completely aligned with selling a bundle. When you look at Hughes and ViaSat basically they are going after the standalone broadband sale and we will be going after the bundled customer."

Whether Dish’s service uses the Hughes or ViaSat satellite will depend on the U.S. region. Dish will handle the installation and customer service, while either Hughes or ViaSat provides the satellite modem and a 27.5-inch dish. ViaSat sells its service through some of Dish’s more than 3,000 dealers and will continue to do so, Khemka said. Dish subscribers at one point accounted for 105,000 of ViaSat’s WildBlue customers. ViaSat’s Exede was introduced earlier this year.

In addition to satellite broadband, Dish will offer DSL under its brand. The DSL, with download speeds up to 20 Mbps, stems from Dish’s 2011 acquisition of Liberty Bell, which had a wholesale agreement with Qwest to supply service in 14 western U.S. states. Dish customer service reps will determine whether a potential customer is better served by satellite or DSL in those regions, Khemka said.

"A single brand for all options will provide clarity in marketing and simplify customer service,” said Brian McIntyre, vice president-broadband, saying there will be a single bill for all services.

Another potential part of the bundle could be a terrestrial wireless service that Dish cobbled together in spending $3 billion to acquire 40 MHz of wireless spectrum in buying assets of TerraStar and DBSD, industry analysts have said. It also bought 700 MHz licenses in 2008 for $712 million. Dish has sought a waiver of satellite spectrum rules from the FCC that would allow it to operate the wireless service in the 2 GHz band. As a condition for its approval, the FCC has sought a 5 MHz upward shift at 2000-2020 MHz. Dish has criticized the FCC’s suggestion for “needlessly injecting serious regulatory and technical obstacles into Dish’s planned deployment” of the wireless network.

Meanwhile, a hearing is set for Friday in Fox Entertainment’s bid to get preliminary court injunction barring Dish’s PrimeTime Anytime service, Khemka said. The hearing is in U.S. District Court, Los Angeles. Khemka declined to comment on the case. PrimeTime Anytime, which became available in May via Dish’s Hopper satellite receiver, is available to Dish subscribers with AutoHop, which strips out commercials from copies of TV networks’ programs, Fox has claimed. Fox, CBS and NBC Universal each sued Dish separately in May, with NBCU arguing that the satellite service operator didn’t have the authority to tamper with broadcast replays. Dish also has filed suit against the networks, including ABC, seeking a court ruling that AutoHop doesn’t violate copyrights since fast-forwarding through commercials has been available since the VCR’s arrival.