NBN Cuts Optus Deal Budget Still On Track For $36B Says Quigley

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The NBN Co has cut a deal with Optus to provide it with an interim satellite service, as part of the rollout of the National Broadband Network, meanwhile NBN Boss Mike Quigley reckons he can still deliver the $36 billion broadband fibre network on budget

The NBN Co has cut a deal with Optus to provide it with an interim satellite service, as part of the rollout of the National Broadband Network, meanwhile NBN Boss Mike Quigley reckons he can still deliver the $36 billion broadband fibre network on budget

AS forecast last week NBN has signed a contract with Optus worth up to $200 million to provide managed satellite services and satellite capacity. The contract is subject to final design and implementation of the full network.

A second contract has also been signed with regional operator IPStar for additional satellite capacity worth just over $100 million. IPStar currently supplies services to around 60,000 rural subscribers, using the satellites of Thai operator Thaicom.

NBN Co will use both operators’ services to offer a 6Mbps download and 1Mbps upload wholesale satellite service, beginning with a trial this month ahead of full launch on July 1.

From 2015, NBN Co aims to operate its own Ka-band satellite fleet with a minimum 12MBps service.

In an interview aired on ABC’s 7.30 Report, Quigley said the NBN Co could look to fix labour costs over the construction of the network, despite Australia’s shortage of skilled workers threatening to blowout NBN costs.

“Labour costs are hard to predict,” Quigley said. “Clearly, the events that took place this year in Queensland with the cyclones and the floods, and the amount of rebuilding that needs to happen is going to have an impact.

“We may look at how to get a commitment for some level of fixed costs.”

NBN Co suspended the tender process for the construction of the network last month after all 14 shortlisted companies charged significantly more for the construction than NBN Co had budgeted for.

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