New face in space

ViaSat also will use spot beams — a standard technique similar to the cells used in mobile networks — in a new way to optimize efficiency. The company will use smaller beams, getting more of them and thus more reuse. In addition, Agnew said, “We didn't divide our frequencies into two buckets and say, ‘This bucket is for gateways only, and this bucket is for the service only.’ We put it all in one bucket, and we'll reuse that over and over again.”

If the satellite is successful, the company may launch others, increasing its geographic coverage over time. It also may add other services such as wireless backhaul. But the lead times on such launches are notoriously long — typically lasting two to three years.

ViaSat's first target will be major carriers AT&T and Verizon, which Agnew suspects may create alliances with smaller telcos for the service. He imagines it won't be economical for small rural telcos to deal with ViaSat on an individual basis. Rather, the company is more likely to work through a distribution partner that can amass economies of scale, such as the National Rural Telephone Cooperative, which already buys satellite-based wholesale IPTV services on behalf of its small rural members. ViaSat is also hoping to partner with existing video satellite providers such as Echostar Communications and WildBlue, knowing that such a deal could be important in freeing users from having to install separate dishes for video and Internet access.

WildBlue hasn't committed to working with ViaSat on the new satellite, and ViaSat isn't “betting on” WildBlue, Agnew said, but he added, “It's reasonable to assume they'll be working with us.”