Spaceway Setback Shows Satellite Shift

Updated from 12:11 p.m.

DirecTV's (DTV Quote) reported decision to drop its Internet-via-satellite venture shouldn't come as too much of a shock to investors -- even if the report, which DirecTV dismissed Friday, turns out to be true.

In recent months, satellite TV operators have been far from enthusiastic about the business prospects of satellite-delivered broadband. They've focused instead on enhancing the video experience for subscribers. And instead of chatting up how they'll compete with cable operators in the Internet business, they've been happy to let telcos handle the job. ...