The NBN Co has announced the roll out of its interim satellite service to remote and regional Australian homes by the start of July. The NBN Co has announced priority will be given to households that have had no access to broadband service in regional and remote areas.

 

The announcement of the service roll-out comes as the NBN Co announced two service contracts signed with Optus and IPstar, both worth $200 million and $100 million respectively.

 

The Interim Satellite Service has been developed to assist the transition from the Australian Broadband Guarantee program to NBN Co’s long-term satellite solution. It is planned that eligible rural, remote and isolated Australians will be able to receive up to a 12Mbps service when NBN Co launches two satellites in 2015.

NBN Co CEO Mike Quigley said: "Today’s announcement is a major step towards reducing the digital divide between those Australians who live in the city and those in the bush.

"Regional, rural and remote Australians make a significant contribution to our economic prosperity. Enhanced broadband connectivity will assist some of the most geographically isolated Australians to access the types of business, health, education and government services that people in metropolitan areas take for granted."

 

The NBN Co’s satellite service is designed for the 7% of Australian households that the direct to home fibre connection will not be able to reach

 

While the 6Mbps/1Mbps Interim Satellite Service will be offered to retail service providers (RSPs) as a wholesale access service, premises-based terminal equipment and dishes will be installed and maintained by NBN Co.

 

The NBN Co has announced that ISPs will set a price for the service while the NBN Co installs all required equipment.

 

NBN Co will commence a trial of the new service this month with two RSPs who are currently offering services via the Australian Broadband Guarantee program. It is planned that the RSPs will offer 200 of their existing customers the opportunity to test the new service.

People in rural or isolated areas who think they may meet the eligibility criteria for the interim satellite service will be able to undertake a service qualification test.

From July it is planned that up to 300 new priority one end-user services per month will be installed during a transition period running until October 2011. From November NBN Co is aiming to provide capacity for up to 1000 new installations per month. Additional RSPs will be on-boarded commencing June 2011.