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NBN Co says Russia no obstacle to satellite launch

5 February 2014

NBN Co has shrugged off delays to its orbital slot filings that are critical to the launch of its $2 billion satellite programme, arguing that talks are “well progressed” with the International Telecommunications Union. However, the company acknowledged that co-ordination negotiations with Russia are yet to be completed.

Industry sources had also suggested that NBN Co had been in talks with KaComm, an Australian company that has four orbital slots that could accommodate NBN Co's proposed satellites. While the two companies have had discussions since the federal election last year, an NBN Co spokesperson told CommsDay that the satellite program remains on track and it would continue to co-ordinate its orbital slots through the Australian Communication
and Media Authority.

In 2011 NBN Co made four filings with the ITU for orbital slots – the positions
where the satellites will be located in space – to be used for the two satellites it plans
to launch in 2015. However, under the ITU's procedures for obtaining an orbital
slot, potential satellite operators have to go through a formal co-ordination process
with any operator or country that has previously filed for slots – whether they're in
use or not.

CommsDay understands that in the case of NBN Co, it is being hampered by
Russian interests, which have earlier filings that give them priority over NBN Co. The company has concluded a number of successful co-ordinations, including with Optus.
There have been previous cases where satellites have been unable to operate because coordination efforts failed. In 2008, Chinese authorities as well as operator AsiaSat of Hong Kong objected to a satellite from Protostar, shutting off service and eventually sending the company into bankruptcy.

The KaComm slots, which were registered back in 2008, are seen by industry watchers as one of the last available options for NBN Co should international negotiations breakdown. However, NBN Co has previously dismissed the company, arguing that “a deal with them didn’t represent taxpayer value”. 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.

There has been a lot of speculation on KaComm's plans for its orbital slots, which were filed with the ITU back in 2008. It has previously been in talks with Indonesian investors, but to date nothing has eventuated.

One potential problem for KaComm, which was founded by satellite industry veterans Gregory Clark and Keith Goetsch, is that all satellite filings are subject to the ITU's “bringing into use” time limits, which will come into effect in late 2015 in the case of KaComm.
However, there is also a provision that has previously been used that would allow for the deadline for use to be extended by three years. This would involve parking an existing satellite, such as one that is being decommissioned, in the orbital slot for a period of 90 days.

In the case of NBN Co, it will not want to risk a delay to its launch. The two satellites will be used to replace the interim satellite service, which is capped at covering 48,000 premises and which is already full. The new service will be able to provide services to 200,000 premises in rural and regional Australia when it launches in 2015.

The Coalition government has previously confirmed its support for the satellite portion of the
NBN, with most of the contracts for its launch and build finalized. The two satellites are being built by Space Systems/Loral, while the launch will be via Arianespace on board two Ariane 5 launch vehicles.

NBN Co told CommsDay that construction of the two satellites is nearing completion in California, with both launches on track for next year.

Earlier this week NBN Co announced that it had awarded a five-year deal to Optus to operate the new satellites. The Singtel subsidiary already supplies managed services for NBN Co's interim satellite service under an existing agreement signed in 2011. Under the new agreement, Optus will provide tracking, telemetry and control services for the two NBN Co satellites from its Sydney satellite ground station facility.

When in opposition, communications minister Malcolm Turnbull had questioned former NBN
Co CEO Mike Quigley regarding the company's lack of finalized orbital slots. It led to the ITU issuing advise that it was not uncommon for companies to buy satellites before slot coordination has been conducted.

Geoff Long, CommsDay