Australia’s Sky Muster satellites are getting old, leaving about 95,069 regional, rural and remote home and business customers who get their internet via the service wondering what comes next.
NBN Co’s satellites were launched in 2015 and 2016 with a design life of 15 or more years, meaning the federal government will have to start the replacement program before the next federal election.
This is because it can take five years from the commencement of negotiations for new satellites to enter into service.
How long NBN Co can continue to provide satellite broadband connections over the Sky Muster satellites has not been released, however, it should not be much more than 16 years as this is the expected lifetime of a telecommunications satellite.
Sky Muster satellites and support systems cost about A$2b and each satellite provides 80 gigabits per second throughput. So, if all 95,069 customers try to connect at the same time, typically during the evening peak period, the throughput for each customer is a sluggish 1.6 Mbps.
And Sky Muster now has serious competition from Elon Musk’s Starlink service. The number of Sky Muster customers fell from 99,482 in February this year to 95,069 in May, while, according to recent reports in the AFR, Starlink claims it has 120,000 Australian customers.
Replacing Sky Muster with new satellites is not a straightforward decision. It could cost as much as A$3bn if the satellite launch goes smoothly, and even more if it fails, not a great scenario given thatthe state of NBN Co’s finances remains questionable.
But this does not mean that the federal government should shy away from a strategic investment at a time when there is an opportunity to think beyond Australia, to provide NBN Co with a global revenue stream, and to ensure that Australians in regional and remote areas are provided with equitable access to broadband and voice calls.
The communications minister, Michelle Rowland, said at an industry event in late 2022 that the government was considering options for replacement satellites.
And there are a few options, OneWeb being one of them.
In July 2020, the British government invested in OneWeb as a strategic investment “demonstrating our commitment to the UK’s space sector and ambition to put the UK at the forefront of a new commercial space age”.
The UK now owns nearly 20% of OneWeb, which operates a Low Earth Orbit (LEO) constellation, in conjunction with Eutelsat and other corporate shareholders.
OneWeb’s constellation of 648 satellites enables high-speed, low-latency (or delay) connectivity for governments, businesses and communities globally.
It does, however, operate at a higher altitude than Starlink’s LEO constellation, which is the largest in the world, so there is a slightly higher latency.
The Australian government could choose to invest in OneWeb while it is still growing. Telstra, Vocus, Pivotel and several other smaller telcos have already announced OneWeb distribution partnerships.
There is also significant synergy between the NBN Co’s mission and what OneWeb aims to achieve globally.
OneWeb has positioned itself as a wholesale broadband provider, similar to NBN Co. Unlike Starlink, it does not offer retail broadband services.
Investing in OneWeb would allow the Australian government to provide a pathway for NBN Co to offer an improved satellite broadband service into regional and remote areas and replace Sky Muster in time for 2030 or 2031.
It would also provide a boost to the growing space industry at a time when Australia is hoping to further develop sovereign rocket and launch capabilities.
This is not a pipe dream, but a very real opportunity to motivate investment and economic growth into the development of sovereign telecommunications capability that will ensure that Australia can leverage future opportunities in the growing space industry.
Through LEO satellite investment, the government can build a revenue stream that provides Australians with an essential service in regional and remote areas. It could also allow the government to shift the Universal Service Obligation from Telstra to NBN Co when the current agreement with Telstra ends in 2032.
Telecommunications is an essential service that has strategic global and domestic significance, so it is a logical step for the government to look at pairing with the British government with an investment in OneWeb. And by investing in a global telecommunications company offering wholesale broadband via LEO satellites, the government would significantly reduce the financial and operational risks associated with replacing the Sky Muster satellites.
Because, while the Sky Muster service provided a major leap forward with the provision of broadband into the bush, there have been complaints about the slow speeds, latency and lack of support for voice calls.
The Australian government should take this opportunity to make a strategic investment and become a partner in a global telecommunications company that will support our national infrastructure, economy and national defence.
