NBN Co closes in on satellite slots

CommsDay can reveal that NBN Co is well advanced in negotiations to secure the necessary orbital slots needed for its satellite broadband service. The firm has concluded successful coordination with the main domestic satellite operator Optus, and is also working through similar co-ordination efforts with both local and international operators.

And in a rare conversation with the media, KaComm Communications chairman and co-founder Dr Gregory Clark (right) has told CommsDay that the company’s plans are being reassessed after being overtaken by NBN Co's satellite launch. However, he dismissed reports that the company was hoping to sell its four orbital slots to NBN Co or could somehow slow down NBN Co's attempts to coordinate its own slots.

KaComm had been the subject of media speculation which has suggested its orbital slots could impact on NBN Co's plans. However, a spokesperson for NBN Co said the company was not concerned with KaComm's plans and that its co-ordination efforts – including with KaComm – for its own slots were well advanced.

“We considered and dismissed the potential to use the KaComm slots very early in our planning because we would still need to go through much of the coordination process we are now undertaking. A deal with them didn’t represent taxpayer value,” an NBN Co spokesperson told CommsDay.

Under the ITU's procedures for obtaining an orbital slot, potential satellite operators have to go
through a formal co-ordination process with any company that has previously filed for slots – whether they're in use or not.

According to one consultant with knowledge of the process, KaComm's orbital slots were never a
threat to NBN Co's plans. The consultant, who wished to remain anonymous, suggested that media reports on a potential sale of KaComm's slots to Indonesia impacting on NBN Co was also not based on fact. He said that NBN Co had to co-ordinate with a number of foreign companies, which was potentially more time-consuming. However, the process is likely to be successful.

NBN Co has confirmed to CommsDay that it is coordinating with a number of other international
operators. It also noted that it has already concluded successful coordination with Optus and has also had talks with KaComm.

 KACOMM SPEAKS OUT: KaComm was set up in 2006 with the goal of providing Ka-band broadband satellite services to remote and regional Australia. In 2009 the company gained financial backing from satellite manufacturer Loral, however shortly after its plans were left stranded when NBN Co decided to launch its own Ka-band satellites as part of the national broadband network.

Clark also dismissed the News Ltd reports that suggested the four slots would be sold to Indonesia and that a deal could somehow hamper NBN Co. However, he didn't rule out that KaComm's plans could be revived outside of Australia.

Clark said there had been an offer made to NBN Co when it was first planning its satellite network back in 2009 – which has been confirmed by NBN Co – but he said no further offers had since been discussed.

One thing that Clark was confident of, however, was KaComm's original business model. He said that ACMA had originally requested a study on satellite broadband, while its plans had also later been formulated in conjunction with a number of independent consultants.

“What amazed me at the time is what a viable business satellite broadband was. We were well on our way with the project, with backing from Loral, when NBN Co came along. They hired two of our top people and implemented our business plan, so of course we haven't proceeded,” Clark told CommsDay.

Clark and KaComm co-founder Keith Goetsch both have a long history in the space industry. Clark was previously both president and COO of Loral Space and Communications in the US and has also been chairman of satellite companies GlobalStar and SatMex. He worked with a group of entrepreneurs to develop Wildblue, another significant broadband satellite system that uses Ka-band for rural services in the US.

Co-founder Goetsch, who initiated and lead the company's satellite orbital slot filings, has been involved in numerous Australian satellite projects. In 2008 he was awarded the National Space Society of Australia's Australian Space Pioneer Award in recognition of his leadership in the initiation of Australian space activities.

While Clark would not be drawn on what the company's next moves are, it is believed that the company is looking to projects off-shore. The company's original plan was for broadband predominantly in Australia, but it had also looked at the possibility of offering services in neighbouring countries. Its orbital slot filings are subject to ITU “bringing into use” time limits, which will come into effect in late 2015.
Geoff Long, CommsDay