Hughes Plans to Bundle Broadband Services With DirecTV

Satellite system's DirecWay broadband offering will be marketed to a combined base of over 45 million existing subscribers of television and Internet services in the U.S.

by Roy Mark of internetnews.com [August 3, 2001]

Hughes Network Systems and DirecTV, Inc., are preparing to rollout later this year DirecWay, a satellite-based broadband service offering high-speed Internet service bundled with digital entertainment channels. DirecWay will be available through independent satellite dealers and retail outlets. The broadband service price will be between $60 and $70 a month.

DirecWay-based broadband satellite will be offered in addition to the DirecTV DSL service, which DirecTV began marketing to consumers this spring.

Direct sell
The DirecWay hardware features a new antenna that provides broadband Internet service and access to more than 225 channels of DirecTV programming, including movies, news, sports and family programming, DirecTV Para Todos, HDTV and local channels in 41 markets, all through one dish. DirecTV has an existing customer base of 10 million subscribers.

"With the addition of DirecTV to our other DirecWay partners, DirecWay will now be marketed to a combined base of over 45 million existing subscribers of television and Internet services in the United States," said Paul Gaske, executive vice president and general manager for the Germantown, Md.-based Hughes Network Systems. "Even more importantly, the DirecWay service enables new and existing DirecTV customers to get the best of both worlds, all from a single dish."

Hughes Network Systems is the world's leading provider of broadband satellite network solutions for businesses and consumers, with over 400,000 one- and two-way systems installed in more than 85 countries.

"Marketing DirecWay with DirecTV enables retailers to bundle and sell to consumers a robust high-speed satellite Internet service along with the nation's preeminent digital multi-channel television service," said Roxanne Austin, president and chief operating officer of the Nashville, Tenn.-based DirecTV. "Along with DirecTV DSL, this solidifies our broadband anywhere strategy."

DirecTV joins America Online, Earthlink, Pegasus, NRTC and Juno as Hughes Network Systems' partners. Both Hughes and DirecTV are operating units of Hughes Electronics Corp.

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