Microsoft Corp. is shifting its MSN Internet access into the fast lane, launching in November a two-way high-speed satellite service nationwide, and renaming the Digital Subscriber Line service it rolled out earlier this year.
MSN HighSpeed, offered through partnerships, is being announced Wednesday. StarBand Communications (formerly Gilat-to-Home) provides the satellite service, and NorthPoint Communications Group for DSL.
Both are marketed through approximately 3000 Radio Shack outlets, which have marketed MSN DSL service for months. Microsoft announced its satellite plans earlier this year.
You can sign up now for MSN HighSpeed DSL access for US$40 monthly, says Bob Visse, MSN lead product manager. Satellite access will cost $60 monthly plus a $299 satellite dish installation fee and a one-year commitment to MSN HighSpeed service. Initially, Radio Shack will sell satellite service only with configured Compaq PCs, but the service will soon be available separately--similar to an existing deal.
Microsoft is targeting broadband have-nots who can't get high-speed access. DSL and cable Net access are available only to about 27 percent of U.S. homes, say researchers at the Yankee Group.
The satellite and DSL partnerships are the latest in a long string of Microsoft deals with high-speed communications companies. Microsoft has stakes in AT&T, Comcast, and Qwest Communications International, as well as fixed wireless firm Teligent and several international cable operators.
StarBand's Broadband Boon
The two-way high-speed satellite service is a satellite technology milestone. Net access by satellite is an attractive option for consumers who crave fast access to the Net, but whose local cable or telephone company doesn't offer such service. But early satellite systems, such as DirecPC, offer only high-speed downloads and require you to send upstream information via standard (slow) dial-up.
StarBand offers a new two-way system that sends and receives data via an 18- to 24-inch oblong satellite dish. The technology supports download speeds of up to 400 kilobits per second, or about 10 times faster than a 56-kbps modem. Upload speeds are about 150 kbps, still speedier than modems.
StarBand is the first to roll out two-way satellite access to consumers, says Jim Stroud, satellite industry expert with the research firm Carmel Group. Hughes Electronics expects to make DirecPC a two-way solution this fall. WildBlue Communications (formerly iSky) and SpaceWay (a division of Hughes) are also developing two-access for homes.
"For the 30 million rural Americans who can't get (high-speed) access, this is huge,"Stroud says. The Carmel Group expects 2 million people will be surfing by two-way satellite by 2003, compared to 10 million cable and 9.5 million DSL customers.
Satellite provider EchoStar Communications expects to also offer StarBand service in November. EchoStar also offers an interactive TV DishPlayer service, which provides Internet access and digital video recording through Microsoft's WebTV.
Microsoft Boosts Broadband Content
Experts say the spate of broadband access deals highlights Microsoft's determination to compete more aggressively with America Online and Yahoo. AOL plans to offer Hughes' satellite service to many of its 26 million subscribers this fall. Also, some AOL content is optimized for people who connect to its network at high speed.
Microsoft likewise will bundle content and services tuned to high-speed access, Visse says. For example, its upcoming AOL-like MSN Explorer browser will feature new broadband content geared toward high-speed surfers.