DISH, DirecTV Log On to Satellite Internet

Satellite Internet provider WildBlue said Friday that it had signed agreements with both DirecTV and EchoStar, the parent company of DISH Network, to allow them to offer branded satellite Internet service.

The exclusive five-year agreement means that satellite providers will be able to erase one of the last remaining advantages of the cable networks: being able to provide Internet service to their customers. Both plan to roll out their respective services over the coming months.

"We have worked very hard this year to make our affordable broadband Internet service available to every home and small business across the continental U.S., and we are pleased to be working with DIRECTV and EchoStar to further strengthen our presence nationwide and to extend their respective product offerings as well," CEO David Leonard said.

The companies said this is especially important for those in rural areas, where cable and telecommunications companies have been slow in rolling out high-speed services.

It also clears a hurdle for those considering satellite: in many cases, the consumer's Internet is also provided through the cable company, and thus requires a higher fee when unbundled from television service. The two companies did not disclose pricing information, although WildBlue's services begin at USD $49.95 per month for 512kbps down/128kbps up.

A separate dish is required to receive the Internet signal, however, no additional cable lines would be required. It is not clear if the WildBlue agreement will replace current agreements the two companies have with some telcos to provide bundled phone, Internet and television services.