big buying, page-5

optus signs with gilat. buys 2,500 vsat units Australian Financial Review, page 65

Optus signs broadband deal with Israeli group
Katrina Nicholas
2004/05/28

Optus plans to grow its broadband presence in regional and rural Australia after striking a multimillion-dollar deal with Israeli satellite giant Gilat.

Under the agreement, Optus will purchase 2500 Skystar very small aperture terminals (VSAT) and a range of hub expansion equipment.

The buy strengthens the long-standing relationship between Australia's second-largest telco and Gilat.

Optus is Gilat's biggest Australian customer and already provides two-way satellite services using its systems. Gilat's Skystar terminals are now being used by Optus to deliver distance-learning services to small rural towns and isolated homesteads in NSW and the Northern Territory.

Optus wholesale and satellite managing director Warren Hardy said the large VSAT order would help Optus bring down equipment costs, which in turn would mean savings for customers.

While two-way satellite services give people in remote areas wireless internet access, the service is still very expensive compared with ADSL broadband internet access.

"This deal is a win-win situation for Optus and our customers," Mr Hardy said.

Mr Hardy said VSATs were well suited to areas where there was no DSL coverage or terrestrial infrastructure.

Although Telstra has a two-way satellite service, its offering has to date focused more on residential users. Optus, via its SatWeb service, has targeted the health, education and small business sectors.