Broadband Satellite services dealt another blow by Next G

The addressable market for satellite service providers that can make use of the Broadband Guarantee funding has been worn down even further after the Government announced that Optus 3G is now qualified as a metro-comparable broadband service.

People who are not able to get what is considered as ‘metro-comparable’ broadband services in both speed and price are currently allowed subsidies from the Australian Broadband Guarantee. A number of satellite service provide have, until now, have gained a lot of business by providing subsidised services like these because for the majority of remote residents these service are the only viable option.

The announcement that Optus 3G was now a ‘metro-comparable’ service was made last week by the Government last week. In September Optus advised that it was well on its way to providing coverage to 98 percent of Australia by the end of 2008 and that it is upgrading its network infrastructure to HSPA.

Due to the cost implications of Telstra’s Next G service it doesn’t qualify as a metro-comparable service. An application to become a provider under the Australian Broadband guarantee has, however, been lodged by Telstra. It is likely that anyone living in the remote parts of Australia would be able to choose between either satellite or Next G for their subsidised broadband services as Telstra claim a 99 percent Next G coverage of the Australian populace.

Telstra would be able to use high gain antennae to increase its service coverage as the subsided service is not required to be mobile.

In December 2008 the Telstra Country Wide group general manger, Geoff Booth said “Telstra has a proposal now before Department of Broadband, Communications and the Digital Economy for the Australian Broadband Guarantee program to offer subsidised access to fixed wireless broadband using its world-leading Next G network combined with high-grade Yagi antenna. This solution would use Australia’s largest and fastest national wireless broadband network, which covers 99 per cent of the population, to provide quality broadband at prices that are comparable to ADSL broadband in the cities today. As soon as we get the go-ahead we are ready to roll out this tremendous product to people in rural and remote areas who are crying out for better broadband.”