Progress toward direct broadcast satellite service in the United States of America

There exist no significant technical or regulatory impediments to the commercial implementation of Direct Broadcast Satellite (DBS) service in the United States, although this service is handicapped by the lack of standard modulation and encryption formats. Problems confronting would-be DBS system operators at this early stage of the business are the fundamental ones like what types of programming will attract enough viewers to pay for the service; should the service be supported by subscription, commercial sponsorship, or some combination of the two; and how can the large start-up costs be shared or otherwise managed. The first three Federal Communications Commission (FCC) construction permit holders are each looking to 'narrowcasting' to the tremendous number of potential viewers across the United States, to accumulate a viable customer base for each specialized type of programming.