A satellite (see Satellite - Artificial) based distribution service that the Federal Communications Commission (FCC) created in 1982 with the allocation of the 500 megaHertz (Hz) of Spectrum in the 12,200 to 12,700 MHz band. Although initially slow in its
development, DBS service now is capable of providing video programming and data services
for reception by 18-inch satellite dishes at homes, apartment houses, and other
locations.
Because of Time delays and other problems satellites are poor for voice communication (see Communications). However, they are ideal for distributing the same signal over a wide area
(as large as a continent). The calling earth station beams the signal up to a
transponder on the satellite, which then resends the calls, on a different
frequency, down to the receiving station.
This allows the satellite to compete directly with cable Television companies. With the development of small satellite dishes that act as
residential Antenna, a number of major entertainment and telecommunications firms have begun
offering the equivalent of Cable Television, eliminating the need for the cable investment, and for dealing with the
local cable monopoly. The satellite dish at the home of the subscriber is the
equivalent of a miniature cable Headend, receiving excellent quality digital broadcasts.
This technology became possible when the 1992 Cable Act gave the DBS firms
access to the same programs that terrestrial cable firms could carry. By late
1995, about a year after starting up, the first two DBS companies had a total of
two million subscribers, not many compared to 62 million cable subscribers, but
a rapidly growing market. By the end of 1996, the DBS customer count reached
4 million.