DIRECTV and EchoStar, two Satellite TV providers, are about to boost their firepower in their fight against the cable companies, who have been giving the Satellite TV providers a good beating with attractively-priced triple-play package of video, phone and high speed Internet .
Today, Clearwire, an upstart WiMAX provider, made a cross-selling marketing agreement iwth DIRECTV and EchoStar (owners of DISH Network). The pact enable the satellite companies to offer Clearwire’s WiMAX high-speed Internet service to their customers and Clearwire will be able to sell Satellite based video to its customers. Each of the three companies will have a triple-play (Broadband Internet, video and voice) solution to market in all current and future Clearwire markets. The launch is planned for later this year.
This is not expected to create big waves in cable land because, Clearwire, the company founded by wireless entrepreneur Craig McCaw, only has 258,000 customers as of March 2007. Clearwire’s service covers 9.9 million people in 420 cities across 39 markets in 13 U.S. states.
This is a desperate attempt for DIRECTV and EchoStar, who have been getting a good beating from cable companies offering attractively-priced package of video, phone and high speed Internet (triple-play).
On the other hand, this deal could give a huge boost to WiMAX’s (and Clearwires) fortunes in the US
What would happen when cable companies start offering quad-play (voice, video, data, and wireless)?
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