satellites idea floated for new network newsat

Satellites idea floated for new network
DAN OAKES
December 11, 2009

THE man whose task is to build the $43 billion national broadband network has suggested the Government could spend up to $1 billion on two satellites to help connect remote communities to the planned fibre system.

About 10 per cent of premises across the country will be too far out of reach of the physical network, so satellite coverage would be the most practical way to connect them, Mike Quigley indicated to a conference in Sydney yesterday.

Optus is the only Australian company that already has satellites, but they are not suitable for use by the national broadband network. Optus has been in talks with the NBN Co about the possibility of launching more satellites, and Mr Quigley's emissaries are also believed to have spoken to companies that already buy satellite capacity, but are considering launching their own satellites.

A company called NewSat

said in September that it hoped to launch its own satellite, Jabiru, by mid-2012, and that it would

cost between $300 million and $500 million.

The chief executive of NewSat, Adrian Ballantine, said at the time that governments worldwide had part-funded satellite launches by private companies.

The comments by Mr Quigley, who is NBN Co's chief executive, came as the Communications Minister, Stephen Conroy, said legislation designed to dismember Telstra could be amended in its favour if progress was made in talks between it and NBN Co.

''Obviously if discussions with Telstra progress and we reach the agreement that we hope we're going to reach, you know, and those discussions continue to be constructive, then there could be changes. But at this stage the legislation is intended to be brought back and discussed, and I think if you look at comments from Barnaby Joyce and the National Party they still remain very committed to passing that legislation.''

Telstra said when the legislation was proposed that it could not then recommend to its shareholders any deal with the Government, because the legislation gave Senator Conroy the discretionary power to strip Telstra of its share in Foxtel and its high-speed cable network if it refused to structurally separate.

Mr Quigley also talked yesterday about the architecture of the network and confirmed that it would extend from the users' premises back to the first point of competition. This means that if Telstra is the only provider of fibre at some stage in the network, NBN Co would either have to duplicate the fibre at that stage or buy or lease Telstra's fibre.