Tuesday, July 26, 2011

The Growth of the Australian Satellite Broadband Market

The Australian broadband satellite market is poised to grow, thanks to the strong support of the government which encouraged investors. Satellite operators Optus, Thaicom and satellite user-terminal builder Gilat  won $320.6 million-worth of satellite broadband contracts recently. Consumers and small businesses are poised to experience improved satellite broadband coverage because of this massive broadband connectivity investment plan.

The 5-year contracts will mark the start of the National Broadband Network plan. The broadband network will also include cable and terrestrial wireless infrastructures. The government plans to launch two Ka-band broadband satellites that will make broadband service accessible in almost all regions across Australia by 2015.

NBN Co., the government-owned company which oversees the development of the hybrid network, said Optus is set to launch a managed VSAT satellite service using ground equipment developed by Gilat Satellite Networks. The contract is estimated at A$200 million. Thaicom’s IPStar/Thaicom 4 Ku-band broadband satellite will be a part of the project as well. The IPStar/Thaicom contract is valued at $100 million.

The project will provide wireless Internet coverage to areas outside the terrestrial grid, with 6 megabits per second download speed and 1 megabit per second upload speed.
The interim service can be extended to another five years during which NBN Co. could select permanent satellite operators. NBN expects download speed to reach as much as 12 megabits per second once the two Ka satellites are launched.

Gilat will provide an initial network of 11 SkyEdge 2 hub stations, along with 20,000 SkyEdge 2 terminals, which would be deployed in three years. Terminals can possibly be expanded to 48,000 units. Gilat Satellite Networks Australian Pty Ltd. was created by the Israel-based company to manage the contract, valued at A$112.3 million if all the 48,000 terminals are used. The Gilat terminals will communicate with the Ku-band capacity on Thaicom and Optus satellites.

IPStar Australia Pty Ltd., the Australian subsidiary of Thaicom, provides broadband connection to more than 80,000 rural customers across Australia. Most of the rural users are eligible to receive equipment subsidies provided by the Australian Broadband Guarantee, a government-funded broadband stimulus program. The government pledged to continue the subsidy until 2012. The program may be extended or modified as the project advances.

The Australian government has shown its commitment to provide wireless and VSAT Internet services to as much as 10 percent of areas beyond fibre-to-premises infrastructures. The National Broadband Network project will take more than 10 years to be fully completed. The overall construction cost of the project, inclusive of terrestrial and cable networks, is A$36 billion.

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