NBN Co has signed a contract with Space Systems/Loral for the delivery of two Ka-band satellites and associated tracking, telemetry and control systems, as part of the National Broadband Network (NBN) long term satellite service.

 

The two new satellites will be launched in 2015, enabling NBN Co to offer a 12 megabits per second (Mbps) download  and one Mbps upload service, at uniform national wholesale prices, to premises outside the NBN fibre and fixed wireless footprints.

 

The contract builds on the NBN Interim Satellite Service which was officially launched on 1 July 2011 and is providing access to enhanced broadband for regional Australians.

 

The Shadow Minister for Communications and Broadband, Malcolm Turnbull, has criticised the agreement, claiming it is another example of excessive and unnecessary spending by the NBN.

 

“There is enough capacity on private satellites already in orbit or scheduled for launch for the NBN to deliver broadband to the 200,000 or so premises in remote Australia without building its own,” he said.

 

“When these two NBN satellites are launched, there will be huge spare capacity on them.  Once again, the NBN is investing more than is needed to achieve its mission.  Once again, the incentive will be for this giant new Government monopoly to intrude into other markets, and undermine existing private sector providers.

 

“At the expected cost of $1 billion to build, launch and operate two satellites built from scratch, NBN Co is spending over $10,000 for each of the 106,000 households its Corporate Plan says will be using satellite broadband in 2021.  That does not even account for the other costs required for the satellite portion of the NBN, such as installing receivers at remote premises.

 

“Today’s decision is not only wasteful, it is late.  According to the NBN Co Corporate Plan, it should have chosen its satellite strategy by July 2011 – eight months ago.”