[Satellite News 05-13-11] Australia’s National Broadband Network (NBN Co.), the entity in charge of the country’s planned Internet connectivity program, has contracted satellite operator Optus to provide an interim satellite service that will form part of the NBN service rollout, NBN Co. confirmed May 13.

The contract, approved by Australian Minister of Broadband, Communications and Digital Economy Sen. Stephen Conroy, is worth up to $200 million.

            “Optus’ interim satellite service is an exciting next step in the rollout of the NBN that will allow tens of thousands of underserved Australians the opportunity to access fast and affordable broadband at speeds they have never before had available to them. The new service represents a substantial improvement in speed and performance over satellite services currently available under the Australian Broadband Guarantee (ABG),” Conroy said in a statement.

The contract announcement follows a report issued earlier this month by the Australian Communications and Media Authority (ACMA) which confirmed that the Australian government requested meetings with regional C-band satellite operators to negotiate spectrum allocation so that the country’s television broadcast services can meet growing demands for mobile broadband.

The report, “Towards 2020: Future Spectrum Requirements for Mobile Broadband,” identified a need to claim 300 megahertz (MHz) of additional C-band spectrum within the next nine years, which doubles the 150 MHz need established by the government agency in its previous five-year outlook issued in 2007. The 150MHz spectrum obtained from satellite operators would bring total spectrum allocation for mobile broadband use to approximately 1040MHz.

 The AMCA report also outlined a need for satellite ground equipment in Australia’s urban areas, where spectrum demand is highest, but warned that the costs associated with ground infrastructure could, “cause an impasse between the regulator, satellite operators and telco carriers eager to expand their spectrum license portfolios,” the report said.

The AMCA has held an extensive and informal spectrum dialog with regional satellite operators during the past few years to support NBN Co.’s plans to launch two Ka-band satellites that will deliver satellite services to approximately 7 percent of Australian households under the NBN.

Optus Satellite Director Paul Sheridan previously told Satellite News that the NBN could have the biggest effect on the telecoms/broadcast landscape in the next few years. “The NBN will have a major impact on how we progress. From our point of view, terrestrial and satellite technologies are complementary. Satellite has to be involved because of the vast distances in Australia — a fact that has been recognized by our government.

In addition to the contract with Optus, NBN Co.’s latest report also confirmed that a second contract, worth about $100 million, has been signed with IPStar for additional satellite capacity.

Conroy said that the combined interim satellite service would provide a wholesale broadband service to retail service providers as a replacement to the current ABG. “The ABG has provided an effective safety net for Australians unable to get an adequate broadband service. However, the ABG was not designed to deliver the step change in performance required to bring forward enhanced services to rural, remote and regional Australia. The NBN Co. interim satellite service is the first step in bringing about this change ahead of the long-term satellite launch in 2015.”