The Australian government has released the Implementation Plan for its National Broadband Network (NBN) that explicitly states the need for two Ka-band satellites needed to offer last-mile service to rural areas.
The Plan calls for satellite to be the…
The Australian government has released the Implementation Plan for its National Broadband Network (NBN) that explicitly states the need for two Ka-band satellites needed to offer last-mile service to rural areas.
The Plan calls for satellite to be the exclusive delivery system for 12 megabyte per second broadband speeds to the 3% of rural Australian households that cannot be reached by terrestrial forms of communication.
This satellite footprint will also cover the 7% of the population that falls outside fibre coverage.
Under the Plan, two satellites are an absolute necessity in order to provide orbital redundancy. The second satellite will likely be launched 18-24 months after the first, in order for the initial capacity use to be monitored.
Due to the lack of Ka-band coverage over Australia, the Implementation Study recommends that the state-created NBN Company contract with satellite operators to provide the two satellites and the required earth gateways.
Though the specifics are still to be finalised, the Study used a dual system of two medium-sized satellites with combined throughput of 110 Gigabits per second as its operating model. It estimated that such a system would require eleven gateways.
The Study advises that the cost of this system must be fully derived from NBN Co’s A$43bn capital investment budget.
NBN Co has been ordered to charge wholesale prices for bandwidth so that it can be resold through affordable retail offers. The report acknowledges that “it is unlikely a next generation satellite service could provide affordable prices and achieve a commercial return.”
This indicates that NBN Co is likely to buy capacity outright at an initial fixed price from any operator it may partner with, and then offer the bandwidth at subsidised lower prices.
The report also acknowledges that the arrival of Ka-band coverage is at least three years away, and that it is necessary to procure further amounts of Ku-band coverage over rural regions in the interim period.
The Implementation Plan’s conclusions are not a surprise, as both NBN Co and the Australian government have previously stated of the need for a satellite component to universal coverage.
However, it is still significant because this Plan is not like EU or US reports on universal broadband coverage that mention the satellite option, but do not seriously pursue it. This study is based on the absolute necessity of satellite technology for the achievement of its goals.
