The DirecPC investment is more evidence of AOL’s frustration with being denied access to broadband Internet markets, said Sean Badding, a senior analyst with the Carmel Group. With the cable companies controlling the cable-TV network and burgeoning cable-modem access market, the online monolith has turned to DSL (digital subscriber line, a technology controlled by the local phone companies) and satellite to offer a fat-pipe service. “Three months ago, AOL tried to open up cable and got shot down,” Badding said. “[Now] cable is a second priority because DSL and satellite are on the frontlines with AOL.” The big loser in the deal will be Echostar, DirecTV’s competitor in the satellite TV market, Badding said. “Echostar is in the line of fire right now,” he said. “DirecTV has the best programming in the industry. They’ve done it with sports and ethnic programming, now they’re doing it with Internet content. This places more competition and content against Echostar.” According to Badding, the service has not done as well as expected, and since the deal comes with the obligatory cross-marketing agreements, the group will now have access to AOL’s million of subscribers.