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Broadband: Special Report
February 6, 2001
Satellite
By Frank J. Derfler, Jr.

For the vast majority of Internet users in the U.S., all the talk about high-speed cable and DSL connectivity is just that: talk. It will take the better part of a decade for such service to be available to a majority of U.S. homes and businesses, and many rural communities may never be wired for broadband.

If you live in one of those areas, or if you just don't want to wait until 2003 for the cable rebuild to reach your subdivision, there is an alternative: satellite Internet service. The ranks of satellite broadband users are expected to swell to 2.4 million users in the U.S. by 2004, according to GartnerGroup. And that's despite the fact that satellite is hardly a perfect solution.

For starters, satellite service is more expensive than either cable or DSL: $60 to $70 a month, compared with around $40 or $50. The dish adds around $300 plus installation costs. Also, a satellite link can be degraded by heavy rain or high wind. As for the service, the 0.7-second transmission delay necessitated by the 44,000-mile round trip from you to the orbiting satellite makes such systems impractical for VoIP (Voice over IP) telephone connections. And forget interactive gaming!

TWO-WAY SATELLITE
$60-$70 a month
$300-$500 installation cost
Pros: Good for those who cannot get broadband any other way

Cons: Shared bandwidth; the transmission distance (44,000 miles round-trip) means some latency; occasional weather and solar interference; unobstructed view of the southern sky required; long service waits possible

Estimated subscribers in 2000:
75,000
Projected subscribers in 2004:

2.4 million
CHART
The best-known satellite Internet player is four-year-old Hughes Network Systems, which has around 200,000 subscribers for its DirecPC service. Hughes's design is known as the "fast-download" model: When you access the Web, your data request is sent to Hughes's Maryland network operations center over a phone line. Responses from Web sites return to your desktop via the satellite connection. Thus, you need both the 18-inch DirecPC dish and a traditional dial-up line. This approach delivers great streaming audio and video and allows fast (400-Kbps) file downloads for about $60 a month. But page requests are routed the old-fashioned way, so surfing Web sites doesn't feel that much quicker than on a standard dial-up connection.

DirecPC is also not suited to business customers who want to share a broadband connection among a network of users: They would have to install a complex router in a dedicated computer. And even then, the slow uplink would limit them to just a few simultaneous users.
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