|
Author: Randy Scott Article source: http://www.direcway.com/. Used with author's permission.
There is a cat fight brewing between Direcway LLC, Starband and Wildblue Communications for the large number of people in the U.S. who can't get some type of broadband internet and are willing to pay $50 or more to get better speeds. The combatants are telling investors there are 20-30 million "potential users" out there in rural or underserved America...true, but the historical fact of the matter is that up to now, only 500,000 or so have been willing to pay as much as $50-$100 a month for the "so called" high speed services offered by Direcway, Starband and now Wildblue.
What has changed to stir all the press and advertising hubub by the companies? The claim is that both the Wildblue ka band and new Direcway 7000 offerings will finally give consumers a more DSL/Cable-like internet experience...ie lower latency and higher upload speeds. They expect that tens of millions of rural Americans will flock to their doors to pay over $50 per month to be "connected". To a degree they are right. It has become virtually impossible to funcion as a business without broadband internet and it is more and more difficult as a consumer to do without it. Even retailers (who obviously target consumers) are building sites that are very difficult to navigate unless you have a fast connection to the net. Pictures chew up bandwidth.
More and more people have found it less expensive to buy over the net...after all, we are nearing $2.50 gas now and who knows where it will end up. Imagine the cost of going to a store in a rural area in a vehicle that is getting 12 mpg (pickup with a V8) with $2.50 gas? Quick math says it would run you about $16.00 for an 80 mile round trip.....do that three or four times a month and buying at home from your easy chair starts looking pretty good. And you have time left over to plow a few fields if you like. Pretty easy picture to get. The problem is that all too many rural Americans already figured that buying from home is a good thing...they just do it by the old reliable U.S. mail order system. No computer or internet required.
The marketing effort by the "combatants" needs to focus on how much better the experience will be over the net. Perhaps they can throw in some instructions on how to overcome the fear of computers and typing as well. This is what I beleive is hampering the efforts to reach rural America by satellite internet...fear of the potential user of new ways of doing things. This is a generational thing...younger rural folks are going to find the internet the only way to travel in the future, but by that time WiMax should cover most of rural America with cable/dsl-like pricing and satellite dishes might be used as birdbaths.
The point of this piece is to arm investors....don't make a long term bet on Wildblue or Direcway! They will provide a bridge to up to 1,000,000 or so underserved rural consumers and could make a splash over the next two years or so, but they will never reach the vaulted numbers they strive for within a timeframe to make a large impact or long term profits in the rural underserved marketplace. About the Author:
Randy Scott has been involved in the bi-directional satellite internet industry from it's beginning as a Sr. Sales Engineer, consultant and business owner. Randy is the founder of VSAT U.S.(http://www.vsatus.com), a consulting and sales organization, representing the most prestigious satellite internet providers in the America's.
Learn About Love From Poet Rumi
Learn about love by reading poetry by a long dead poet named Rumi. No need to look for ancient texts hidden in caves...Search the Net.
Business Plans Keep You On The Success Course
Would you start off on a journey without a map or an idea of how to get there? I don't think so! A business plan will keep you focused in the right direction...
7 Tips to Care for Your Antique Furniture
During your spring cleaning, don't forget to think about your
antiques. In this month's column, we'll give you seven tips to help
you care for your antique furn...
You Didnt Use Brainstorming to Select Your Measures, Did You?
How to give performance measure design the 'oomf' it needs to produce the best measures.
How to Easily Increase Your Profits
Do you remember the last time you went into a shop and the person 'serving' raced over to you, greeted you with a lovely smile, heaps of enthusiasm and said, "W...
Guide To Refinancing Your Mortgage
Refinancing can be worthwhile, but it does not make financial sense for everyone. It is a balancing act between the potentially huge savings over a 30 year mort...
The Most Influential Shih Tzu Breeder in the Early Days of Shih Tzu in North America
Ingrid Colwell - A quick glimpse of a woman for all shih tzu fanciers to remember and cherish.
Digital Camera Macro Mode
The digital camera is a wonderful device that allows a diverse variety of applications with its even diverse spectral collection of utilities. As technology pro...
The Power Of Persuasion
Everything you accomplish in life is with the help of other people. The people who move ahead the fastest in life and are the most successful are those people w...
Does Staging Work?
Staging can involve minimal effort on the part of a seller. Merely rearranging furniture can show a house off to advantage. For some sellers, however, staging a...
What Every Service Provider Ought To Know About Writing A Business Plan
This is what successful service providers do when writing a business plan that captures the attention of prospective investors…
When Clear Skin becomes an Obsession
Acne Dysmorphia is becoming more common these days. However, it is only slightly related to acne, and more so to body dysmorphia disorders such as anorexia. Fin...
Using QuickSub To Make It Easier For Your Visitors To Subscribe To Your Feed
You can make it easier for your visitors to subscribe to your RSS feed. With a free and easy to install javascript function you can add the QuickSub feed button...
Terror; The Lost War
Terror; Intense, overpowering fear. An emotion experienced in anticipation of some specific pain or danger (usually accompanied by a desire to flee or fight).
Should You Write a Book?
One morning, you open your inbox and find several e-mails that will boost your business. There is an invitation to speak at a local group comprised of your best...
Network Marketing Tips - Same Number of Years In The Business, So Why Different Results?
We spend same year, so why do we achieve different results? The answer is simple. Some face more rejections, so they become more successful. Are you preparing t...
Securities
Computers and securities must form a strong partnership to keep information safe and secure. It is important for people who spend time surfing the web to unders...
Creating a Power Plan
If you want to keep track of everything you do for a customer, you need to start with ALL the necessary contact information. This article talks about creating a...
Making Money with RSS Feeds
First it was banner ads, then Google AdSense and now, the latest way to make money on your web site could very well be RSS feeds. Say what? I said: RSS is hot a...
4 Simple Ways to Solve Your Debt Burden
Are you struggling with debt? Here are 4 Simple Ways to help lessen your burden.
China Finds Humans to Test Bird Flu Vaccine On, in Qinghai
China is serious about breaking into the bio-tech field and has a vaccine to stop H5N1 Bird Flu strain. Recently they admitted over 160 people died and today th...
Scared to Death of Dying and Denying Grief
Our American society is afraid of death and continues to misunderstand grieving.
What is Forex Trading?
Forex, or Foreign Exchange, is the simultaneous exchange of one country's currency for that of another.
Consumer Effort And The Purchase Decision
Consumers engage in behavior that provides the highest perceived payoff for the least effort. You should design your marketing and purchase process with this i...
|
Print this page