TMCnews Featured Article


September 25, 2009

And the Largest Broadband Stimulus Application Goes to . . . EchoStar?

By Michael Dinan, TMCnet Editor


Just a few months after on its major divisions forged a deal to deliver its flagship video transport service to a communications provider in Georgia, an Englewood, Colo.-based company that specializes in digital TV entertainment, set-top boxes, and end-to-end video delivery systems reportedly has emerged in an ambitious broadband stimulus package that seeks $483 million funds.
 
According to the Denver Business Journal, EchoStar Corp. is joining Carlsbad, Calif.-based ViaSat (News - Alert) Inc. as the two seek money for a new satellite. The Journal's Greg Avery reports thtat it’s one of at least three projects in which EchoStar is involved, seeking a total $1.1 billion-plus in stimulus money. That would make make EchoStar the largest single applicant for the broadband stimulus funds.
 
“EchoStar and ViaSat (News - Alert) would invest between $36 million and $114 million toward the satellite, depending on how much in stimulus money they win, if any,” Avery reports. “The project is estimated to cost $519 million. The satellite would provide download speeds of up to 8 megabits per second in all or parts of 20 states west of the Mississippi River, including Colorado, the application said.”
 
EchoStar could not be reached for comment.
 
In July, as TMCnet reported, Ringgold Telephone Company to deliver transport of 42 popular high definition TV channels to its IP headend., the company forged a deal with
 
The technology provides digital interactive video service NexTV to its subscribers along with telephone and Internet access via a broadband connection. The EchoStar ViP-TV delivered IP channels will be immediately available to RTC subscribers. The new additions increase RTC’s offerings to a total of 48 high-definition channels.
 
The new broadband stimulus deal is a far larger fish.
 
The American Recovery and Reinvestment Act – better known as the “economic stimulus package” made $7.2 billion available to extend high-speed Internet to unserved and under-served areas.
 
As Avery noted, EchoStar and ViaSat would invest between $36 million and $114 million toward the satellite, depending on how much in stimulus money they win, if any. The project is estimated to cost $519 million, he said.
 
“The satellite would provide download speeds of up to 8 megabits per second in all or parts of 20 states west of the Mississippi River, including Colorado, the application said,” Avery reported.

Michael Dinan is a contributing editor for TMCnet, covering news in the IP communications, call center and customer relationship management industries. To read more of Michael's articles, please visit his columnist page.

Edited by Michael Dinan