Australia’s National Broadband Network Company (NBN Co) has said its two Ka-band satellites will not be launched before early 2016, as opposed to late 2015 as initially planned.
In an extensive report entitled ‘Fixed Wireless and Satellite…
Australia’s National Broadband Network Company (NBN Co) has said its two Ka-band satellites will not be launched before early 2016, as opposed to late 2015 as initially planned.
In an extensive report entitled ‘Fixed Wireless and Satellite Review’, NBN Co said the delay was not uncommon in any satellite launch but stressed it did not expect further set backs.
Under the NBN plan, the new coalition government aims to expand high-speed broadband internet access to all Australians by 2019 at a cost of US$19bn.
It is looking to provide services to 93% of the population through fibre, while a further 7%, mainly in rural and remote Australia, will be served by either wireless or satellite technology.
But the report has found that around 200,000 premises in the non-fixed line footprint may not be served with faster broadband.
To remedy this, NBN Co is suggesting either expanding the fixed wireless rollout in this footprint or entering into a partnership with an external party to access the required capacity on a third satellite. The extra cost is estimated to be between A$900m (US$840.5m) and A$1.4bn (US$1.3bn).
It has, however, ruled out the possibility of purchasing a third satellite of its own.
A decision is expected in the next six months but NBN Co has already indicated it has preference for the first scenario.
Back in March, nascent Australian satellite operator NewSat lodged a proposal with the government to purchase the NBN Co’s two Ka-band satellites ordered from Space Systems Loral.
NewSat envisages NBN Co paying a fee for the wholesale service for the life of the satellites plus one renewal. The fee would be guaranteed to enable NewSat to service its debt and return a profit on the investment.
In its submission to a panel set up by the Ministry of Communications, NewSat argued that privatising the satellites would provide the maximum efficiency and benefit for NBN Co and Australia.
The panel is expected to provide its final report to the Australian government in June 2014.
