PanAmSat began 6-month beta test of high-speed Net/36 network des...
PanAmSat began 6-month beta test of high-speed Net/36 network designed to deliver IP audio, video and data to ISPs with goal of starting commercial service by midyear. Beta test is using 1-2 transponders aboard PanAmSat Galaxy satellite, Qwest Communications…
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DSL service in western U.S. and Excite@Home cable modem network on both coasts, CEO Douglas Kahn said Mon. at C.E. Unterberg, Towbin satellite conference in N.Y.C. Agreements with BellSouth and Hughes Network Systems’ DirecPC in addition to Qwest and Excite@Home give Net36 access to 3.5 million homes in U.S., although goal is to pass 16 million worldwide as service expands to 24 transponders by 2004, he said. PanAmSat will spend $250 million in developing service and draw heavily on fleet of 21 satellites to deliver it worldwide, Kahn said. Of 16 million homes, half will be in U.S., others in Europe and Asia, he said. Plan is to have Net/36 act as middleman in delivering programming content to edge of DSL and cable modem networks. PanAmSat has agreements with dozen programmers including ABC-TV, Walt Disney Co., Bloomberg TV and Hollywood.com, Kahn said. Despite start of beta test, PanAmSat still has several hurdles to clear, including digital rights management issues raised by content providers. “This concern has taken on a tremendous amount of significance for them and we'll have to address that,” Kahn said. Adoption of Net/36 platform among broadband service providers also has been slower than expected, he conceded. Number of homes that had access to Net/36 stood at “several hundred thousand” in late Nov. before additions were made in following month, he said. “We're going to invest a little bit less [in Net/36] this year because we expect the revenues are going to be a little bit slower,” Kahn said. Executive conceded that PanAmSat had been “frustrated” at pace of DSL deals, noting that even after reaching agreements, RBOCs “are not fast movers” in deploying technology. PanAmSat also is aggressively pursuing Ka-band spot beam satellite business and is likely to enter market with 2 birds, Kahn said. PanAmSat has received authorization for 7 Ka-band slots, with 5 others pending, he said. While PanAmSat had aimed to have some Ka-band agreements secured by late last year, Kahn said it was likely no deals would be signed by midyear. “Our objective is to be comfortable with what the spot beams are going to be used for,” he said. “It’s better to take a little bit more time to get it right.”