DirecTV WiMAX Wireless Broadband Internet Plan to Be Announced

DirecTV may be looking to cash in on the lucrative wireless broadband Internet market by rolling out DirecTV WiMAX.  A few months ago, DirecTV announced that it would be spending as much as $1 million developing a new wireless technology, sparking interest in a DirecTV wireless broadband service plan. DirecTV Chief Executive Officer Mike Palcovic has indicated that further details on the plan will be released later this year

DirecTV WiMAX and a DirecTV Wireless Broadband Internet Plan

Palcovic has also confirmed that DirecTV is considering WiMAX, a new wireless broadband Internet technology. WiMAX stands for Worldwide Interoperability for Microwave Access, and is a standards-based wireless technology that provides high speed broadband Internet connectivity over long distances. WiMAX is similar to WiFi in concept, in that WiMAX transmits broadband Internet data through signals and compatible wavelengths rather than cables.

However, WiMAX boasts technological improvements that enhance performance and permit usage over much greater distances than WiFi. In general, WiFi is used by individuals as a home networking technology; whereas WiMAX can be deployed by an ISP to distribute wireless broadband Internet to multiple subscribers. If DirecTV chooses WiMAX as the basis for its wireless high speed Internet service plan, DirecTV will most likely set up WiMAX towers in areas with high subscriber density so urban users will have access to the technology first.

Why Introduce DirecTV Wireless Broadband Internet Now?

DirecTV WiMAX may change the way ISPs do business. Satellite companies have long been under pressure to come up with their own Internet service plans to complete with cable operators offering “triple-play” packages. These packages offer television, phone, and Internet services for one low rate on one bill. Cable telecommunications companies cite triple-play packages as one of their most effective methods for obtaining and anchoring subscribers.

With DirecTV WiMAX, DirecTV will be taking the first step toward competing directly with these cable bundled packages by offering Internet and television services on one bill.  DirecTV has also been temporarily partnering with phone carriers to provide phone services. Cable Internet carriers, however, may discover that they have nothing to fear from DirecTV WiMAX. DirecTV is not yet solidly committed to a DirecTV WiMAX Internet service plan, and acknowledges that negotiations have been progressing at a slow pace. By the end of the year, however, it will become clear whether the cable companies will be forced to compete with triple-play packages from satellite telecommunications providers.