Direct TV May Try Internet Through Power Lines

Satellite television provider DirecTV Group Inc. may test delivering high-speed Internet service through power lines in a major U.S. city in the next year, its chief executive said on Monday.

DirecTV and others are talking to companies that specialize in providing broadband through the electrical grid, Chief Executive Chase Carey said at the Reuters Global Technology, Media and Telecoms Summit in New York.

"We're not the only ones talking to them," Carey said, in response to a question on whether DirecTV would consider a test in a major city. "I think you'll see some meaningful tests in this arena."

DirecTV would like to test delivering Internet access on power lines in a "top 50 city where you're covering at least half the city."

While DirecTV and fellow satellite TV operator EchoStar Communications Corp. have managed to keep increasing their subscriber base in the face of stiff competition from cable operators, Wall Street analysts have long questioned what broadband strategy the satellite operators will employ to counter competitive pressures.

Certainly they should be doing something since fast satellite internet requires an FCC permit. This fact has crippled satellite's growth as a technology platform. Up until now, satellite firms have tried to steer customers to local telcos which is a losing proposition.