Europe Online Networks SA (EON), Luxembourg, has taken two ten-year leases on the Astra satellite system as part of the launch of its ambitious ‘Internet in the Sky’ network. The service is due to launch on May 15, and is the latest development in the rapidly emerging European internet-by-satellite market.

EON will go head to head with DirecPC, a satellite TV/ISP run by Hughes Network Systems. DirecPC uses the Eutelsat satellites, whereas EON has leased digital transponders on Astra 19.2 degrees East, which already has tens of millions of domestic dishes as an audience across Europe.

The consumer service promises to eventually deliver a plethora of online services, including games, video-on-demand and downloadable music. Set-top boxes and PC cards are being manufactured by companies such as Nokia and Philips. Users will use existing return lines like telephone, ISDN and ADSL to make the system interactive. The land-based backbone is a hybrid of networks from Luxembourg’s Digital Television Services, Belgium’s SNCB Railways, the UK’s Internet Network Services Ltd and GTW-Hermes Esprit.