Apr 19, 1999 12:00 PM,

Compaq to bundle DirecPC

Brian Quinton

Compaq will offer buyers of its customized Presario Internet PCs satellite Internet access, thanks to a new alliance with Hughes Network Systems.

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Beginning in May, U.S. customers who build their own Presario at one of Compaq's 9000 retail kiosks can sign up for a service package from DirecPC, Hughes' satellite Internet provider. The packages provide high-speed access via satellite dish and universal serial bus modem and provide a 400 kb/s throughput with a telephone return.

The deal gives Compaq three custom broadband options for Presario; the manufacturer also offers cable Internet through Road Runner and @Home, and digital subscriber line (DSL) through various telco Internet service providers. "But a lot of people will never get cable or DSL," said Frederick von Oldenburg, manager of broadband strategy for Compaq's consumer division. "Compaq can't wait for them to roll out in Bugtussle. We need to provide those people with broadband, and Hughes can help us."

Customers who sign up for DirecPC can keep an existing ISP account. "People don't want to give up their e-mail addresses," said von Oldenburg. "So when I'm on the road, I have that dial-up solution to get into my e-mail. But at home, when I want to download the new 'Star Wars' trailer, I can have it in three minutes instead of in a half-hour."

Hughes will offer two residential service packages for the Presario line-25 hours a month for $29.95, or 100 hours a month for $49.95. Commercial users can buy 200 hours a month with four e-mail addresses and four LAN seats for $129.95.

Customers can install their Compaq PC, the DirecPC antenna system and the USB receiver themselves or call in a field team to do it, said Paul Gaske, DirecPC general manager. "We've spent several years developing 'self-commissioning' software that will walk them through setup, help them point the antenna and bring up the service," he said. Users need a clear view south at about a 30 degrees angle to contact the Hughes satellite in geosynchronous orbit over the equator.