StarBand Communications

About StarBand Communications

StarBand Communications Inc. emerged in 2000 as a pioneering venture in the nascent market of residential satellite internet. The company was established as a joint venture between three major players: Gilat Satellite Networks, a specialist in satellite network technology; EchoStar, a satellite television provider; and the technology giant Microsoft. StarBand's core business was providing two-way, always-on satellite internet access to residential and small office/home office (SOHO) customers, primarily targeting rural and underserved areas in the United States where terrestrial broadband services like DSL and cable were unavailable.

The company's business model revolved around monthly subscription fees for its internet service. Initially, customers had to purchase a PC with a pre-installed satellite adapter card, but the company later evolved to offer standalone external modem units. Its service utilized a Very Small Aperture Terminal (VSAT) platform, requiring customers to have a small satellite dish installed. Over the years, StarBand offered various service tiers with download speeds reaching up to 1.5 Mbit/s. The company also introduced successive generations of modems, such as the Model 360 and the Nova series, which offered improved speeds and connectivity options, including Ethernet ports for easier networking.

Despite its early-mover advantage, StarBand faced significant financial headwinds. In May 2002, the company filed for Chapter 11 bankruptcy protection, citing substantial liabilities and challenges in billing and revenue collection, which were partly attributed to a dispute with its partner, EchoStar. After a year and a half of reorganization, the company emerged from bankruptcy in late 2003. In March 2005, StarBand was wholly acquired by Spacenet, a division of its original founder, Gilat Satellite Networks, which continued to operate the service. However, facing persistent competitive pressure from other satellite internet providers and the prospect of new, higher-bandwidth services on the horizon, StarBand Communications ceased all operations on September 30, 2015.