Hughes shutting down DirecTV Broadband DSL service

Hughes Electronics, blaming the breakup of its acquisition deal with EchoStar Communications, said it would shut down its long-suffering DirecTV Broadband DSL service in the next 30 days or so.

The service, which Hughes acquired in April 2001 as Telocity, has 160,000 subscribers who, the company said, will be “transitioned” to alternate service providers, the company said.

A note on the DirecTV Broadband Web site blamed the shutdown on a “dramatic change in the capital markets and the significant shift in the telecom operating environment” and said the service would be “operational for a minimum of 30 days.”

DirecTV Broadband, also called DirecTV DSL, was generally a stepchild of the satellite provider, which also offers, and will continue to offer, a satellite broadband service, DirecWay. DirecTV Broadband expected to post a 2002 cash flow deficit of $110 million to $120 million.

--Jim Barthold, Senior Editor