NBN Co’s long term
satellite is likely
to be delayed until
2016, with the
company’s strategic
review recommending
that it take up
extension options in
current interim
satellite contracts
until 2017 to cover
the expected gap.
The launch was
originally expected
in the third quarter
of 2015.
The strategic review
of the satellite
project also
recommended against
recent industry
proposals for NBN Co
to sell and lease
back the satellites.
However, it is in
favour of looking at
future partnership
opportunities with
the private sector.
As well as the
likely delayed
launch, the review
recommended pushing
back the launch of
the second satellite
so that the team can
focus on the initial
launch and service
commencement. The
review found that
the NBN Co
spacecraft build and
launch had very
little remaining
contingency time
available, relative
to what other
satellite programs
would typically have
at this stage of the
build, and also
identified a number
of key delay risks.
“The review expects
the service
commencement date is
more likely to be in
early CY2016 or
sooner and this will
only be achieved if
the proposed
mitigation actions
are executed
effectively. If they
are not executed
effectively the
service commencement
date could be later
in calendar year
CY2016,” the report
noted, adding that
longer delays could
still materialise
due to the inherent
risks in any complex
satellite program.
In the lead up to
the review there
were suggestions
that NBN Co might
sell the satellite
project to private
operators and then
lease it back.
However, the panel
found that given the
time constraints and
other risks, this
was not a viable
option.
“The review believes
that at this stage
in the satellite
program, given the
risks and timelines
involved,
negotiating and
executing any such
deal is not
feasible. NBN Co
could, however, work
with interested
third party
providers to
investigate ways to
commercialise any
spare capacity in
NBN Co's
undersubscribed
beams. Going forward
NBN Co should
communicate to the
market that it is
open to partnership
proposals, and then
ensure that it
considers each on
its own merits and
risks,” the review
noted.
The strategic review
also examined
various incremental
revenue
opportunities across
fixed wireless and
satellite. For
satellite the only
opportunity
identified involves
the selling of B2B
products on the
satellite service –
as a wholesaler to
NBN Co customers,
rather than
end-users –
where there is
excess capacity. The
resultant retail
products would be
sold to end-users at
near commercial
rates offering
transportable,
mobile and high data
throughput services
to new markets like
mining and
construction sites.
However, the review
also noted that this
would have
relatively high
complexity given the
need for mobility
licences and
co-ordination with
other satellites,
requiring VSAT
providers to place
hubs in 10 gateways
with Forward and
Return carriers in
those beams. It
would also involve
certain regulatory
implications.
ORBITAL SLOTS:
The review also
reported on NBN Co's
difficulties in co-ordinating
orbital slots for
its satellites ahead
of the launch. NBN
Co intends to
position its
satellites in slots
at 140° east and
145° east, which sit
above the high
density population
areas of Australia
and provide ideal
angles for residential
satellite antennas.
Although NBN Co has
been engaged in the
slot coordination
process since 2010,
it noted that it is
not yet complete. So
far, NBN Co has
concluded several
significant
coordination
agreements,
including with Korea
and Japan, however a
significant
co-ordination
negotiation with the
Russian Ka band
satellite AM5, which
has a priority
filing, remains.
“The ACMA has
strongly advised
that NBN Co complete
a key co-ordination
agreement with this
particular operator
(Russian Satellite
Communications
Company, the main
state operator of
communications
satellites) prior to
launching NBN 1A.
NBN Co and the
Russian Satellite
Communications
Company should be
able to have both
satellites operating
in the orbital slot
at 140° east, with
an NBN Co satellite
serving the southern
hemisphere and the
Russian satellites
serving the northern
hemisphere, but
there is some
outstanding risk,”
the report noted.
The review
recommended that NBN
Co engage specialist
negotiators and work
closely with the
ACMA to complete the
remaining agreements
for orbital slot
co-ordination.
