Channelnews : nbn has a satellite problem, jb hi fi set to sell satellite phones

speculation is mounting that NBN Co could have a massive $680M dud on their hands after Telstra cut a deal with Elon Musk the owner of the Starlink telecommunications system that has already

stripped over 10,000 regional customers away from the NBN offering in Australia. In Australia Satellite phone services are already taking off with retailers such as JB Hi Fi  tipped to sell

satellite handsets that link with a satellite service in the future as satellite services move into metro areas. Already early adopters such as the NBN are facing problems as new more

nimble and efficient services are launched. NBN Co has already spent $680M on their Sky Muster satellite and according to the Financial Review, Telstra’s network chief, Nikos Katinakis, is

claiming that NBN’s Sky Muster is so poor that it would not offer the service to its customers because it wanted to avoid being associated with the product. “We would go to regional areas,

and they would say a lot about the quality of the [Sky Muster] service,” Mr Katinakis said, “It was not something we wanted to put our name behind.” There is now speculation that the NBN may

have to write off its existing investment in the struggling satellite service having already announced they would not recover at least $31 billion in costs relating to the building and

maintenance of the service. There is also speculation that Amazon is also looking at entering the Australian market with a satellite broadband offering. This week Telstra announced their new

Starlink deal, however they have failed to deliver any clarity around the deal or when the Telstra service running on Starlink which uses a constellation of small, lower-orbiting satellites

will be available to rural Australia customers. Katinakis claims that Telstra is punting on its investments in low earth orbiting satellites would eliminate the need for phone services via

copper wires, as currently required by law. “We would love to get out of copper,” he said. “Because it’s old technology. I mean, we’re talking about 20, 30 years old now.” In the bush

residents have failed to sign up because of its reputation for poor service. Another spin off could see JB Hi Fi selling Satellite handsets in the future that connect consumers to the

Starlink service. The AFR claims that NBN Co has responded to the newer small satellite networks by asking companies in the sector for information on how they could deliver internet services

to Australians. The small satellites, which operate in low earth orbit, offer faster connections than big satellites that are locked above a single point, because the signals do not have to

travel as far. Starlink claims they have 120,000 users compared with Sky Muster’s 93,000, showing the importance of the space to the Australian rural industry despite its relatively low

number of users. NBN’s Gavin Williams, who is in charge of developing the national broadband network in regional Australia claims “We are always looking ahead to how best to meet the

evolving broadband needs of Australia and believe that low earth orbit satellite technology could be a part of our network in the future,” Mr Williams said. One option for NBN Co or even

Optus who also own their own fixed Satellite service would be to get into bed with a competitor to Starlink some of the largest are Britain’s OneWeb Network, Amazon’s Project Kuiper, and

Telesat. Several already have Australian partnerships. ChannelNews understands that Amazon is looking for partners to sell their service. Telstra’s broadband deal with Starlink is

non-exclusive and this could result in Telstra competitors also jumping on board the US service a move that could see retailers moving to a new generation of satellite enabled devices claims

analysts. Telecommunications analyst Paul Budde said NBN Co was already playing catch-up. “We’ve had years of problems with these satellites and people are abandoning them in favour of

Starlink,” Mr Budde said. Sky Muster services are based two large satellites, one of which weighs 6400 kilograms and spans 26 metres, that orbit above Australia. The NBN has already

committed $750 million to build new fixed wireless services — where a home or business beams a signal directly to a nearby ground tower — which will be available to 120,000 people who are in

Sky Muster range. And it has launched an uncapped Sky Muster plan. About Post Author David Richards David Richards has been writing about technology for more than 30 years. A former Fleet

Street journalist, he wrote the Award Winning Series on the Federated Ships Painters + Dockers Union for the Bulletin that led to a Royal Commission. He is also a Logie Winner for

Outstanding Contribution To TV Journalism with a story called The Werribee Affair. In 1997, he built the largest Australian technology media company and prior to that the third largest PR

company that became the foundation company for Ogilvy PR. Today he writes about technology and the impact on both business and consumers.