Compaq, DirecPC in satellite deal

Compaq will soon start offering customers the option of obtaining Internet access via satellite, the third leg in an overall company strategy to promote faster connections to the Net. Compaq Computer will start offering by mid-April the ability to order satellite data services from DirecPC for custom configured PCs via kiosks in stores and its Web site, said sources. Internet access through a satellite hook-up provides download speeds of up to 400 kilobits per second, while information is sent out over regular telephone lines at up to 33.6 kbps. The initiative is the third leg of the company_s "Triple Play" strategy to link users with high speed Internet services. Compaq already offers PCs configured for cable and DSL connections (digital subscriber line) and has signed deals with respective carriers so consumers can obtain these services. Compaq last year launched its broadband initiative and announced DirecPC as a partner. The company already provides a link from its site to DirecPC_s Web site, but the new program will simplify the buying process. With a push from Compaq, the world_s largest PC maker, the market for satellite services is set to gain some measure of credibility as a viable alternative to other ways of getting on the Net. Currently, users pay $299 for the needed additional hardware plus a monthly service fee that starts at $30 a month. With the current rebate program for new customers, the hardware is priced at $199. No two-ways about it. Hughes Electronics, the parent company of DirecPC, is looking to boost its competitive position by investing $1.6 billion to build two-way data services over satellite networks.