MSV Could Be Teaming with EchoStar, DirecTV, Intel
Mobile Satellite Ventures (MSV) officials had no comment on a Thurs. CNBC report that MSV parent Motient may join EchoStar, DirecTV and Intel in a wireless broadband venture (CD Dec 5 p2). According to the report, talks among DirecTV, Intel, EchoStar, MSV and Motient on a wireless broadband venture have intensified, with a billion dollars possibly on the table for Motient in return for control of its 1.5/1.6 GHz L-band spectrum. Intel would develop chip-sets for whatever device ultimately connects users to the Internet, the report said.
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The CNBC report appears to supply some further details about the confidential June Request for Information (RFI) issued by DirecTV and EchoStar we revealed earlier this month (CD Dec 5 p2). The RFI posits creation of a nationwide wireless broadband network using 1.5/1.6 GHz L-band or 2.5 GHz spectrum. DirecTV confirmed the document’s authenticity, but said it hadn’t made any commitments “to EchoStar or anyone else.” EchoStar didn’t comment.
Officials at EchoStar and DirecTV declined to comment on the CNBC report. If built, a nationwide wireless network providing broadband connectivity and voice services would be the DBS operators’ long awaited answer to cable broadband and DSL, as the firms’ June RFI said.
The CNBC report said any deal would be complicated by Motient efforts to consolidate its ownership of the spectrum in question. Motient holds 49% of MSV and 61% of recent 2 GHz spectrum winner TerreStar. The firm said in Sept. it was looking to take full control of MSV, while divesting TerreStar as a standalone company (CD Dec 7 p5, Sept 26 p6).
Any deal with MSV would likely come with its sought- after Ancillary Terrestrial Component (ATC) license from the FCC. Agency ATC clearance okays MSV to take a hybrid tack on its next generation satellite services, via a satellite/terrestrial system for 2-way services. MSV holds the only such license. It’s well known that MSV is looking for a partner with which to develop its next generation hybrid system, and industry analysts have eyed the DBS operators as the most likely suitors.