Starlink is not available everywhere in Australia. It is currently available in parts of Victoria and Southern NSW,but is taking orders from people in other regional areas.
It has even attracted attention from former NBN board member and Internode founder,Simon Hackett. “Starlink is pretty darned impressive,” he wrote on October 22 alongside a picture that showed download speeds of 314 Mbps.
Brian Holder,who owns a farm near Braidwood in NSW and is general of sales and marketing at IT company Tecala Group,was struggling to run video meetings from his property where he spent most COVID-19 related lockdowns.
“Trying to work from home in a standard modern workplace environment was permanently sub-optimal and sometimes unworkable,” Holder says. “At one point I was presenting to the board and my service deteriorated to such a degree that I just dropped off the call. That was a low point.”
Holder says he expects the speeds to slow slightly when more people join the service,but that it will still be better than anything currently available.
“Right now when I connect my laptop directly via ethernet to the modem,I’ve seen 230 Mbps and more. On Wi-Fi,I’m averaging around 170 Mbps depending on how far I am from the modem. Bear in mind it’s in beta test at the moment - so there’s low traffic - it’s like driving a really fast car on an empty freeway.
Loading
“My ADSL averaged 2 Mbps. Even if increased traffic was to slow it by a factor of 10,it’s still going to 10 times better than I had.”
Damian* also owns a property near Braidwood and was using ADSL until he bought a Starlink satellite. He refused to pay for NBN’s Sky Muster Satellite because the plan was expensive and the results were sketchy. “I turned on my internet and instantly was getting speeds of over 200 gigabits per minute,” he says. “The user experience is world’s apart - you don’t deal with a call centre.
“You look at the Australian government,the NBN,Telstra - all their resources. It’s clumsy,and it’s complicated and at the end of the day,the services are crap. Compared to this,it just doesn’t make sense.”
It isn’t just commercial users that are interested in this service - the NSW Police became the first enterprise customer for Starlink in May.
The reason why the internet speeds offered by Starlink are so fast is because of the satellites they use. NBN Co uses two satellites that sit 36,000 kilometres from the earth and rotate in line with the planet.
But Starlink,through its parent company SpaceX,has 1740 satellites and Musk has plans to eventually launch up to 40,000. These are known as low earth orbit (LEO satellites) and sit about 300 km from earth. They are being deployed by Amazon and OneWeb,but Musk’s are the first to be rolled out in Australia.
Musk’s satellites only work with ground stations that allow them to connect into the broader internet. The NBN has 10 ground stations,but Starlink is likely to have dozens because the satellites are at a lower orbit and have a smaller field of view. Starlink has also launched in New Zealand with reports pointing to Vocus Group,owner of Dodo and iPrimus,as the telco behind the creation of the ground stations.
What this means for the NBN’s satellite service remains to be seen. The pricing and speeds of Starlink could change once the beta test is concluded and be too expensive for the average user. But all signs point to competition for the NBN.
The federal government has invested billions trying to solve problems with poor connectivity across Australia’s vast landscape,with NBN’s regional networks to swell to a net loss of almost $10 billion over their lifetimes. Of the 416,378 “ready to connect” satellite households,just 112,879 premises are connected. But it’s not just the NBN rollout that has cost taxpayers. The government has announced almost $280 million in funding as part of its regional connectivity program. Meanwhile,the regional broadband scheme levies industry to subsidise the cost of NBN’s loss.
For his part,Communications Minister Paul Fletcher welcomes the competition.
“The NBN is one network among many,” Fletcher says. “The Morrison government does not want the NBN to be the only provider servicing Australia. That was Labor’s mindset;we prefer competition.
“The NBN is reliably serving the needs of millions of Australians and will continue to do so;but we want to see the maximum degree of choice and optionality. Whether it is 5G,fixed wireless broadband,or low earth orbiting satellite providers such as Starlink,the more choices of communication networks there are for regional and rural Australians,the better.”
As always,no plan is perfect. David Kennedy,managing director at consultancy Venture Insights,says Starlink will have an impact,but the price of installation could be too much for some.
“The basic problem with Starlink is the price,” says Kennedy,who as an NBN Sky Muster Plus service. “[It’s] a lot more than NBN,and we know that consumers are reluctant to bear upfront costs. At $139 per month,the monthly cost is high too. In exchange,you get higher speeds and lower latency than NBN plus unlimited data,but you have to pay a lot to get them.
“What could turn this around is if Starlink cut the price of the installation. But until that happens,I think they’ll have a marginal impact.”
The proliferation of the LEOs also comes with global risk - everything from cybersecurity vulnerabilities to bright lights that clutter the night sky and make it difficult to see the stars.
A paper presented at the 70th International Astronautical Congress in 2019 said that while these satellites will transform the availability of internet across the globe,there will also be unintended consequences such as increases in cyberattacks throughthe proliferation of lasers that are capable of disrupting satellite communications.
For its part,the NBN says its services are well positioned against the LEOs and believes there will be continued demand for its service as products like Starlink launch.
“The NBN Sky Muster satellite network is a crucial part of NBN Co’s national broadband infrastructure,” a spokesman said.
“NBN Co’ssatellite services are competitively priced and well positioned against the LEO satellite services. NBN Co is currently investing more than $200 million per year in fixed wireless and satellite to meet current and future customer needs.”
*Damian is a pseudonym. The user requested anonymity to speak with this masthead.
The Business Briefing newsletter delivers major stories,exclusive coverage and expert opinion.Sign up to get it every weekday morning.