Satellite News

Satellite operator NewSat has spoken out against the National Broadband Network (NBN) as it urges three independent MPs to look into alternative solutions to the $43 billion project.

The company, which took out a half page advertisement in the Australian Financial Review, sent out an open letter from chief executive officer Adrian Ballantine entitled “exploding the broadband myth.” In the letter, Ballantine attempted to liken his independent communications company to the independent MPs, saying that the MPs needed to be provided with all the information when making decisions that would affect the introduction of a national broadband communications network.

NewSat, which is scheduled to launch what it claims is the first fully Australian owned satellite called Jaibiru-1 in 2012, may have a vested interest in the outcome of the struggle to form the government and the fate of the NBN project. The satellite operator stands to profit greatly if the NBN ends up being shelved.

Mike Quigley, the chief of NBN Co, said that under the current scheme only 200,000 premises in Australia would be in need of satellite access. The figure represents just 3 per cent of the NBN.

Ballantine argued that broadband delivery through satellite would be faster and cheaper when most of Australia’s geography is considered. He says that what works for cities may not necessarily work for the outback.

“Yet unbelievably we are the one country in the OECD without a space policy. This illustrates that the key decision makers who have shaped broadband policies have been lacking the right knowledge about what is possible, what is needed and what is the right solution,” Ballantine said.

The government has started to address the issue with the establishment of a Space Policy Unit, which is tasked to develop policy for Government consideration. In addition, the government has also launched a $40 million space research programme.

Ballantine focused on the problems he saw with the technological underpinnings of the current version of the NBN and underlined the important role the independent MPs had in deciding whether it gets built or not.

“Independents are often ignored or swept under the carpet as either annoying or irrelevant… The battle underway to lead Australia has striking similarities for the battle for broadband in our country.” Ballantine said in the letter.

“Telstra and Optus are the two major opponents and organisations such as NewSat are the independents. The current National Broadband Network has been given licence to dictate on all things broadband but treats independents and their constituents like second class citizens.”

Ballantine recognized that broadband is crucial to the future of the country, however, he claims that the project would “not deliver broadband to regional communities based on providing the best possible service in the most cost effective manner. The issue of broadband is being treated as a matter of political expediency, rather than a matter of social justice.” He also argued that the NBN is pursuing the technology for its own sake “rather than (as) a means to dramatically improve the quality of life for hundreds of thousands of Australians.”

Ballantine said that connecting the country would be “ludicrously expensive” and questioned the funding model for the project. “At the risk of sounding cynical, do we actually believe that when the last connection is completed under NBN – many years from now – the project will be on time, under budget and technologically current?” Ballantine said.