The joint venture formed by Satellite TV giants DIRECTV and EchoStar Communications has pulled out of the Federal Communication Commission (FCC) advanced wireless services license auction. Expected to be one of the highest bidders, they put up more than $972 million for the auction. But earlier this week, they began scaling back on bids and eventually withdrew from the auction completely.
The satellite TV providers were seeking the license in a bid to build a wireless broadband network. Using a technology called WiMax, they could have provided a broadband service offering downloads between 2 Mbps and 4 Mbps. Satellite TV companies like EchoStar and DirecTV are fighting for survival as they face more competition from cable and, more recently, telephone companies. These companies have the ability to offer bundles of services that include high-speed Internet access, telephone and TV service. Satellite TV companies can currently only offer TV service. While EchoStar and DirecTV have separately partnered with phone companies Verizon Communications and AT&T, they are likely to lose these partnerships as more phone companies begin TV services as well.
Read more about the auction in the CNETnews.com article Satellite TV providers exit FCC auction.
