Sources report that Dish Network Corp. may use the EchoStar 17 Ka-band platform built by its sister company, EchoStar Corp., to set up a global satellite broadband service.
The EchoStar 17 satellite was launched into orbit on July 5. According to one of the insiders (who refused to be named,) the new EchoStar Ka-band satellite can support download speeds of up to 15 megabits per second thanks to its advanced Jupiter high-throughput systems.
The insider opined that Dish will limit the speed of its introductory nationwide packages to a maximum of 5 megabits. This way, the planned system can handle more capacity, allowing Dish and EchoStar to serve up to two million new Internet customers.
Recent technological advances allowed the U.S. satellite industry to access higher-frequency bands -specifically, the new Ka-band- to give more people a faster satellite Internet experience. Accord to Deepak Dutt, vice president of investor relations at EchoStar, satellite Internet service capacity has climbed “by an order of magnitude” thanks to the new technology.
The same sources report that Dish will formally announce its new satellite broadband Internet service around late September or early October. The brand new Dish services will supposedly be offered to rural subscribers who are too far away from cable broadband.
This will not be the first satellite service offered by Dish. The company has earlier partnered with ViaSat Inc. to provide satellite TV services certain parts of the U.S., including areas east of the Mississippi River and the West Coast.
Dish’s planned team-up with EchoStar will augment the former company’s existing satellite products by allowing it to create a bundled option that combines satellite broadband with Dish’s current video service. It will also give Dish the capability to cover the whole U.S. instead of just a few regions.
According to Dish Chief Executive Officer Joseph Clayton, there are around 8 million to 10 million American households that cannot access fast Internet. Most of these potential customers are in rural areas. CEO Clayton believes that they make for a“substantial the market potential for Dish’s planned satellite broadband service.