was not immediately available for comment.
Hughes acquired Cupertino, Calif.-based DirecTV Broadband in April 2001, and as recently as October was
looking to jump-start the business with new features and an advertising campaign.
But despite adding subscribers, the customer base never reached the critical mass necessary to turn a profit. The
company faced stiff competition from its DSL rivals, as well as companies offering alternative high-speed hookups,
most notably, cable modems.
And after its merger with EchoStar collapsed
last week, Hughes needed to quickly to stem the flow of red ink. Associated with the move, 200 workers were
laid off from DirecTV Broadband last week, and another 200 will go when the wind down is complete.
Hughes will continue offering its Direcway satellite-delivered consumer broadband service, which also counts
approximately 160,000 subscribers. The company, however, won't aggressively court new customers for the
service in the near term to keep costs down.
The popular DirecTV satellite service will not be impacted by the moves.
Meanwhile, a Broadband.com, a Maryland portal that offers
visitors the ability to shop for high-speed Internet service, is hoping DirecTV subscribers visit to make their own
arrangements.
By entering their ZIP code, visitors can compare pricing, promotions and service options from dozens of companies including AT&T and Verizon Communications.
