Hughes Network Systems (HNS) recently boosted the performance of its Direcway satellite broadband service as part in the company’s efforts to bring more recognition to satellite technology’s role as a viable alternative to bridging the digital divide in rural areas underserved by terrestrial technologies.

HNS is offering its DW7000 hardware to residential and small business customers in order to improve the speed of the satellite Internet service. The new modem offers download speeds of up to 2 megabits per second and uploads of up to 500 kilobits per second, depending on the level of service the customer orders.

“When you put [the upgrades] in context, we obviously are addressing the market that is underserved by cable and DSL,” Mike Cook, senior vice president at HNS, told Satellite News. “If you are a small business in that rural area and you want more than dial-up, your only alternative today is likely to be go to a T-1. If you compare the performance of that business Internet plan, that has a price point of just under $200 per month. A leased line is going to cost you hundreds of dollars per month. It is a high performance plan at an interesting price.”

Reaching The Rural Market

While satellite delivery speeds are becoming more competitive relative to terrestrial offering in rural markets, satellite is still facing an uphill battle for recognition in those rural areas.

Cook cited a survey commissioned by HNS and conducted by Survey.com that indicated that half of the people in rural areas who did not have access to terrestrial broadband “didn’t realize there was an alternative” with satellite technology. “We’ve got to be better at getting the word out, and we are attempting to do that.”

Perhaps underscoring those finding was a Sept. 20 forum in Washington, D.C., where Cook, along with representatives from the U.S. Federal Communications Commission, Department of Agriculture (USDA) and the Rural Broadband Coalition (RBC) discussed the challenges that remain in bridging the digital divide. Satellite technology was not directly injected into the conversation unless Cook addressed it.

The satellite industry has been fighting for recognition in the broadband arena for many years, Cook said. “Every time anyone talks broadband or talks about cable and DSL, they ought to be talking about satellite as well because it is an essential part of the broadband infrastructure of this country,” he said. “One of the reasons why it is not front of line is because the wireline industry, including both cable and the telcos, are constantly approaching the hill for tax breaks, incentives, grants and money, so they are constantly up there with their begging bowl. We are not constantly in their face asking for money. As a result, we have become less visible to them. It is a sort of a paradox that we have to get out of.”

HNS is embarking on a campaign to help bring satellite broadband back to the forefront of the conversation. “We have been more active in briefing analysts, the media, regulators and legislators and we intend to continue to do that.”

No Marketing Changes

While HNS wants to make inroads in the rural marketplace, the company does not plan to change its marketing. HNS has been steadfast in keeping costs under control in order to stay profitable, including holding tight reigns on its marketing activities.

In spite of the marketing limitations, Cook said early indications are its campaign for increased exposure is helping, along with the higher performance offered by Direcway. Cook would not cite specific figures but said HNS is seeing some increased demand for its product in recent weeks.

–Gregory Twachtman

(Mike Cook, HNS, 301/428-7083)