Satellite Broadband does not work

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This morning WSJ reported that News Corp is pulling the plug on its satellite-based Internet service. Hughes Electronics had embarked on an ambitious plan to deliver broadband to consumers and businesses using satellites made by Boeing. Seems News Corp executives have doubts about the financial viability of the plan. The company will be launching one Spaceway satellite, but will be using it for HDTV broadcast. This indeed is good news for the cable guys, who should be smart enough to capitalize on this and use broadband service as another way to keep the customers on coax. Sure there are some others who are trying to play with satellite broadband but News Corp’s decision says one thing loudly and clearly: the economics for large scale satellite Internet service are not right. 

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