DirecTV Group has spent $45 million to acquire fourth generation spectrum in Brazil. DirecTV plans to use the spectrum to expand its Long Term Evolution business in Brazil.
And although the idea might meet with some skepticism elsewhere, DirectTV plans to use LTE to create a dual-play dual-play offer of entertainment video and broadband Internet access, using LTE as a rival to either digital subscriber line or cable modem services.
DirecTV's Sky Brasil subsidiary acquired 12 regional blocks of 2.5 GHz spectrum in Rio de Janeiro and Sao Paulo, as well as in Amapa, Bahia, Goias and Parana, Rio Grande do Sul, and Santa Catarina. DirecTV already had been selling wireless broadband in Brasilia.
DirecTV has four million video customers in Brazil.
Nor is the Brazil expansion the only wireless broadband effort DirecTV has launched in Latin America. DirecTV also has won LTE spectrum in Columbia.
In some ways, DirecTV’s business model is reminiscent of the way early LTE networks were launched, with “modem only” service initially, before LTE phones actually were available.
In DirecTV’s case, though, the focus on Internet access only is deliberate. LTE’s value is that it enables Internet access, not that it is a “mobile phone” network.
As with most to all observations about service provider strategy, the question of whether LTE can be a competitor to DSL or cable modem or satellite Internet access has to be answered in context.
In some markets, LTE will indeed prove to be a primary way for some service providers to provide Internet access. In other cases the business case will be less strong. But DirecTV's moves also illustrate that LTE is not "just" a fourth generation "mobile" technology.
It also can be a primary Internet access platform.
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