DirecTV to offer two-way satellite Internet

Hughes Electronics said yesterday its DirecTV unit will begin marketing two-way satellite broadband Internet service to DirecTV’s 10 million customers across the U.S.

Called DirecWay, the service will enable the No. 1 U.S. satellite to provide Internet access via satellite in addition to its 225 channels. DirecWay will be available through independent satellite dealers and retails outlets later this year at a cost of $59.99 to $69.99 per month.

“The DirecWay service enables new and existing DirecTV customers to get the best of both worlds, all from a single dish,” said executive vice president and general manager for Hughes Network Systems Paul Gaske in a statement.

While the move will let DirecTV tap into customers not served by either DSL or cable modems, it will not push satellite to the forefront of high-speed access, said Keith Kennebeck, an analyst at The Strategis Group.

“Broadband Internet over satellite is not ever going to be the predominant access method for high-speed Internet,” Kennebeck said. “It’s not something that is going to save or catapult any of these DBS providers up to the levels of penetration that the cable and DSL people have experienced.”

Australia’s News Corp is in negotiations to combine Hughes Electronics with its Sky Global unit. Kennebeck said if the deal goes through, satellite broadband would not be driven as aggressively as interactive television services.

“It’s an added bonus for NewsCorp if they get it,” he said.