DirecTV Group Inc. and Douglas County-based EchoStar Communications Corp., the top two U.S. satellite television broadcasters, agreed to sell high-speed Internet services to compete with Web products offered by rivals.
DirecTV, the No. 1 satellite service with 15.4 million customers, and EchoStar, No. 2 with 12.3 million, both will offer the service using technology provided by closely held WildBlue Communications Inc. for five years, the companies said in statements today. Terms were not disclosed.
By adding Internet connectivity, the satellite companies will match more closely the range of video, Web and phone services sold by rival cable-TV and telephone companies such as Comcast Corp. and Verizon Communications Inc. Comcast has 700,000 customers in Colorado.
DirecTV and EchoStar will sell the Web service to existing video customers and residents in rural areas and in cities targeted by WildBlue.
Shares of El Segundo, California-based DirecTV rose 8 cents to $17.29 at 4 p.m. in New York Stock Exchange composite trading. Englewood, Colorado-based EchoStar’s shares gained 20 cents to $30.44 in Nasdaq Stock Market composite trading.
Spokesman Robert Mercer at DirecTV and EchoStar spokeswoman Heather Black both had no comment when reached by telephone.
“We are available nationwide,” said Joanne Dant, a spokeswoman for WildBlue. “For the most part, we target small cities, rural, but you could get it in a big city.” On its Web site, WildBlue says its service is available in most of the U.S. and costs from $49.95 to $79.95 a month, plus a $299 equipment charge. On June 3, the Greenwood Village, Colorado-based company said it set up service for its first customer, in Strasburg, Colorado.
