Telstra has signed a deal with Viasat to build ground stations that will help it deliver satellite internet into Australia and other markets.
The three geostationary orbit (GEO) satellites run by Viasat in the Asia Pacific region,which sit about 35,000 kilometres from the earth’s surface,will deliver data and video streaming speeds of more than 150Mbps. This is significantly faster than what is currently available on NBN Sky Muster,which is also a GEO satellite,but promises speeds of 12 Mbps for the basic service and 25 Mbps for its premium service.
The satellites are not as close to earth as those deployed byElon Musk’s Starlink,which is rolling out in Australia, and can relay messages faster. Telstra CEO Andy Penn told analysts there would be future announcements on partnerships with companies that run such low earth orbit satellites,or LEOsats.
Satellite technology is valuable because it offers cost-effective internet coverage to hard-to-reach places and more capacity,which is important in the rollout of 5G. The ground stations in Australia will also enable the use of Viasat’s satellite technologies in other markets and have the capacity to serve government entities,companies and consumers.
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“We are acutely conscious of getting the balance right between making sure we take advantage of the opportunities to invest in the future and support further growth and success of the company,” Mr Penn said. “We have seen a significant ramp up in demand... and we see an opportunity for incremental investment to deliver incremental return.”
The second project - Telstra’s national fibre network build - will commence later this financial year. It will add up to 20,000 km of inter-city ultra-high low-latency fibre paths,which are used by NBN Co to carry traffic over long distances. Upgrading this fibre is important because it typically has a lifespan of 25 years and without improving it,maintenance costs could skyrocket. It also allows Telstra to increase capacity,which will allow it to grow the business and avoid losing customers to alternative players.
The move will pit Telstra againstBevan Slattery’s HyperOne project,which began construction last year.